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Standard of living
Household income
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    Household income

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    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)

    Mean

    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.' 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.' 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; if data is unavailable for 2021, figures for 2020 or 2019 are shown.

    Median equivalent adult income

    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. 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. 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)

    The following table shows data from Eurostat on household median equivalised net income adjusted for differences in purchasing power between countries. 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.' 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 26,351
     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
     Hungary 6,490 7,135 7,938 8,634 9,983
     Greece 11,320 11,627 8,810 9,258 9,920
     Slovakia 5,606 8,975 10,220 9,744 9,425
     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 6,215
     Iceland 19,893 18,024 20,804 23,637 -
     United Kingdom 18,774 15,776 17,784 18,423 -


    * Data for Norway is from 2020. The most recent data for Iceland and the United Kingdom is from 2018.

    See also

    External links


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