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Disposable household and per capita income

From Wikipedia, the free encyclopedia

Household income is a measure of income received by the household sector. It includes every form of cash income, e.g., salaries and wages, retirement income, investment income and cash transfers from the government. It may include near-cash government transfers like food stamps, and it may be adjusted to include social transfers in-kind, such as the value of publicly provided health care and education.

Household income can be measured on various bases, such as per household income, per capita income, per earner income, or on an equivalised basis. Because the number of people or earners per household can vary significantly between regions and over time, the choice of measurement basis can impact household income rankings and trends.

When taxes and mandatory contributions are subtracted from household income, the result is called net or disposable household income. A region's mean or median net household income can be used as an indicator of the purchasing power or material well-being of its residents. Mean income (average) is the amount obtained by dividing the total aggregate income of a group by the number of units in that group. 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.

Disposable income per capita (OECD)

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Current

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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.

Household disposable income per capita (including social transfers in kind)
Location 2022* (USD PPP)[1]
 United States 62,300 (2021)
 Luxembourg 59,700
  Switzerland 52,000
 Germany 51,600
 Austria 50,200
 Netherlands 48,800
 Norway 47,700 (2021)
 Belgium 47,400
 Australia 46,800 (2021)
 France 45,548
 Sweden 43,900
 Finland 43,600
 Canada 43,600
 Denmark 42,800
 United Kingdom 43,038
 European Union 41,500
 Italy 41,075
 Ireland 38,300
 Slovenia 36,600
 Lithuania 36,300
 Czechia 35,600
 Spain 34,500
 Portugal 34,500
 Japan 33,900 (2021)
 South Korea 32,700
 Poland 32,200
 New Zealand 31,900 (2019)
 Turkey 30,600
 Hungary 29,800
 Slovakia 29,500
 Estonia 29,200
 Latvia 28,600
 Greece 28,000
 Chile 23,100 (2021)
 Russia 20,600 (2019)
 Mexico 20,500
 Costa Rica 17,900 (2021)

*Figures have been rounded to the nearest hundred; if data is unavailable for 2022, figures for 2021, 2020 or 2019 are shown.

Median equivalised disposable income

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Annual median equivalised disposable income per person, by OECD country.[2]

The median equivalised disposable income is the median of the disposable income which is equivalised by dividing income by the square root of household size; the square root is used to acknowledge that people sharing accommodation benefit from pooling at least some of their living costs.[3][4] The median equivalised disposable income for individual countries corrected for purchasing power parity (PPP) for 2021 in United States dollars is shown in below table.[2]

Median equivalised disposable income
Location 2021 (USD PPP)
 Luxembourg 49,748
 United States 48,625
 Norway 41,621
  Switzerland 39,698
 Canada 39,388
 Austria 37,715
 Belgium 37,110
 Iceland 36,853
 Australia 36,835
 Netherlands 35,891
 Germany 35,537
 Denmark 34,061
 Sweden 33,472
 New Zealand 32,158
 South Korea 31,882
 Ireland 31,392
 Finland 30,727
 France 30,622
 Slovenia 28,698
 Italy 27,949
 United Kingdom 26,884
 Spain 26,630
 Estonia 26,075
 Poland 24,264
 Czech Republic 23,802
 Israel 21,366
 Japan 21,282
 Lithuania 20,856
 Latvia 19,908
 Croatia 19,680
 Portugal 19,147
 Greece 16,774
 Slovak Republic 16,410
 Hungary 15,361
 Romania 15,898
 Bulgaria 14,990
 Turkey 10,341
 Chile 10,101
 Costa Rica 8,915
 Mexico 6,090
 South Africa 6,068

See also

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References

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  1. ^ a b c "Household accounts - Household disposable income - OECD Data". theOECD.
  2. ^ a b OECD (20 June 2024). Society at a Glance 2024: OECD Social Indicators, Figure 4.1 Median income varies by a factor eight across OECD countries. OECD.
  3. ^ "Income Distribution Database".
  4. ^ "OECD Data Explorer, Income distribution database, Median, Disposable Income".
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