Money value of consumption and income of rural families: Two measures of economic status

In this study a measure of economic status, money value of consumption, is defined and its relationship to income is examined using data collected from 628 U.S. rural families and 1170 North Carolina rural families. Findings suggest that for rural families money value of consumption is linearly related to income, that the variance of money value of consumption is proportional to income and that money value of consumption is more equally distributed than income. Money value of consumption is more closely related to income for one-and four-or-more-person families than for two-or-three-person families. A comparison of how the two measures (money value of comsumption and income) rank rural families by consumption status indicates that income is most likely to rank families inaccurately at very low and very high levels of income. Findings should assist in the appropriate interpretation of income when it is used as a proxy for consumption.