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I’m confused

Dollar street income vs data from PovcalNet Database


I’m curious about how the method used to calculate income on dollar street varies from data from the PovcalNet database (as the PovcalNet database was used to create the four levels in the book Factfulness).

You’ve mentioned in a previous answer that you use something called an Adult Equivalency adjustment or something similar on Dollar Streer incomes to account for the fact that children consume less.

I’m curious as to whether the PovcalNet database uses this also, or whether their income figures are from dividing total household income by the number of household members regardless of their age?

I guess the real question I’m getting at is how should we relate the income which shows on dollar street to the four levels to most accurately place where a family would be on that scale?

Should we straight up divide the monthly income on dollar street by 30 and decide their level that way, or multiply the figure by the amount of adults in the household, and then divide by the total number of family members?

Thank you :).
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