Disposable household and per capita income

(Redirected from Household income)

Household income is a measure of the combined incomes of all people sharing a particular household or place of residence. It includes every form of income, e.g., salaries and wages, retirement income, near cash government transfers like food stamps, and investment gains.

Average household incomes need not map directly to measures of an individual's earnings such as per capita income as numbers of people sharing households and numbers of income earners per household can vary significantly between regions and over time.

Average household income can be used as an indicator for the monetary well-being of a country's citizens. Mean or median net household income, after taxes and mandatory contributions, are taken as indicators of standard of living, because they include only disposable income and acknowledge people sharing accommodation benefit from pooling at least some of their living costs.

Median income is the amount that divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount. Mean income (average) is the amount obtained by dividing the total aggregate income of a group by the number of units in that group.

Disposable income per capita (OECD)Edit

MeanEdit

The list below represents a national accounts derived indicator for a country or territory's gross household disposable income per capita (including social transfers in kind). According to the OECD, 'household disposable income is income available to households such as wages and salaries, income from self-employment and unincorporated enterprises, income from pensions and other social benefits, and income from financial investments (less any payments of tax, social insurance contributions and interest on financial liabilities). 'Gross’ means that depreciation costs are not subtracted.'[1] This indicator also takes account of social transfers in kind 'such as health or education provided for free or at reduced prices by governments and not-for-profit organisations.'[1] The data shown below is published by the OECD and is presented in purchasing power parity (PPP) in order to adjust for price differences between countries.

*Figures have been rounded to the nearest hundred and only countries with data from the past two years are shown.

Median equivalent adult incomeEdit

The following table represents data from the OECD's "median disposable income per person" metric; disposable income deducts from gross income taxes on income and wealth as well as contributions paid by households to public social security schemes.[2] The figures are equivalised by dividing income by the square root of household size. As the OECD displays median disposable incomes in each country's respective currency, they have been converted (using PPP conversion factors for private consumption from the same source) in order to account for each country's cost of living in the year that the disposable median income was recorded.[3] Data are in United States dollars at current prices and current purchasing power parity for private consumption for the reference year.

Median household net income (Eurostat)Edit

The following table shows data from Eurostat on household median equivalised net income adjusted for differences in purchasing power between countries.[5] According to Eurostat, 'the total disposable income of a household is calculated by adding together the personal income received by all household members plus income received at household level...Disposable household income includes: All income from work (employee wages and self-employment earnings), private income from investment and property, transfers between households, all social transfers received in cash including old-age pensions.'[6] This indicator does not include non-monetary income components such as the value of goods produced for own consumption, social transfers in kind and non-cash employee income (except company cars). Furthermore, to take account of differences in household sizes, disposable income per household is equivalised.

Median Household Net Income by Country (Purchasing Power Standard)
Country 2007 2011 2015 2018 2021*
  Luxembourg 26,847 26,601 29,285 27,550 32,132
  Norway 20,700 24,251 28,353 26,296 27,886
  Switzerland 20,504 22,833 26,545 26,934 26,112
  Netherlands 17,538 18,833 19,389 21,543 24,551
  Austria 17,810 20,425 21,981 23,204 24,450
  Germany 17,323 18,395 20,342 21,917 23,404
  Denmark 16,875 19,184 20,384 21,641 22,899
  Belgium 16,312 18,106 19,954 21,336 22,596
  Sweden 15,911 18,031 20,154 20,429 20,673
  Ireland 17,722 16,628 17,656 19,464 20,099
  Finland 15,241 17,933 19,430 20,048 20,070
  France 15,166 18,170 19,885 20,260 20,054
  Malta 12,442 14,029 16,753 17,932 19,012
  Cyprus 18,252 19,162 15,313 17,505 18,334
  Slovenia 12,922 13,940 15,102 15,771 17,579
  Italy 14,497 15,776 15,395 16,715 17,304
  Spain 12,689 14,424 14,463 16,030 16,303
  Estonia 6,490 7,491 10,423 13,374 14,805
  Poland 5,609 8,333 9,957 11,546 13,857
  Czechia 8,841 9,989 11,652 13,264 13,815
  Lithuania 5,708 6,068 8,251 10,702 13,742
  Portugal 8,919 9,621 10,317 10,801 12,404
  Latvia 5,585 5,944 8,108 10,016 12,003
  Croatia - 7,423 8,253 9,870 11,385
  Slovakia 5,606 8,975 10,220 9,744 10,076
  Hungary 6,490 7,135 7,938 8,634 9,983
  Greece 11,320 11,627 8,810 9,258 9,920
  Bulgaria 3,296 5,824 6,882 7,208 9,375
  Romania 2,783 3,641 4,357 6,278 8,698
  Turkey 4,054 4,766 5,668 6,467 6,620
  Iceland 19,893 18,024 20,804 23,637 -
  United Kingdom 18,774 15,776 17,784 18,423 -


* Data for Norway, Switzerland, Slovakia and Turkey is from 2020. Most recent data for Iceland and UK is from 2018.

See alsoEdit

ReferencesEdit

  1. ^ a b c "Household accounts - Household disposable income - OECD Data". theOECD.
  2. ^ Income Distribution Database OECD July 2017
  3. ^ Income Distribution Database 27 October 2022
  4. ^ "Income Distribution - Median equivalised disposable income - OECD Data". theOECD.
  5. ^ Eurostat - Median Equivalised Net Income.
  6. ^ "Income and living conditions (ilc)". ec.europa.eu. Retrieved 21 December 2022.

External linksEdit