Family Size and the Distribution of Per Capita Income
This paper is another contribution to the vast literature which addresses this issue: comparison of household income per capita among households of different structures requires judgment about the relationship between real income and family size. Our work uses a revealed preference approach in which household size/structure variables are included in empirical demand studies and the estimated coefficients on these variables are used to infer equivalence; it differs from many of the other studies not in basic concept but in its empirical strategy. While most studies build family composition effects into a relatively formal structural model of demand and impose considerable restriction in order to obtain an estimable system, we use a reduced-form approach which requires much less of the data.
Lazear, Edward P. and Michael, Robert T. "Family Size and the Distributionof Real Per Capita Income." The American Economic Review, Vol. 70, No. 1, ( March 1980), pp. 91-107.