I’m trying to create a family-size adjusted income variable in the ATUS. The purpose is to rank households or families (not sure which will be easier yet) into income deciles. Is there a good way to do that?
So far, I’ve only encountered a categorical income variable for families. It seems like that would be hard to adjust for family size, because you’d have to make some assumptions if you, say, give every family the floor or midpoint value of their income bracket to make the adjustment.
As a work around, I’m thinking about estimating yearly earnings with the “weekly earnings” variable and the “number of weeks worked variable.”
Any pointers would be much appreciated. Thanks!