Median income

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The median income is the income amount that divides a population into two groups, half having an income above that amount, and half having an income below that amount. It may differ from the mean (or average) income. Both of these are ways of understanding income distribution.

Median income can be calculated by household income, by personal income, or for specific demographic groups.

The measurement of income from individuals and households, which is necessary to produce statistics such as the median, can pose challenges and yield results inconsistent with aggregate national accounts data. For example, an academic study on the Census income data claims that when correcting for underreporting, U.S. median gross household income was 15% higher in 2010 (table 3).[1]

When taxes and mandatory contributions are subtracted from income, the result is called net or disposable income.

Median equivalised disposable income

This section is an excerpt from Disposable household and per capita income § Median equivalised disposable income.[edit]
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]

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

See also

References

  1. ^ Fixler, Dennis; Johnson, David S. (September 30, 2012). Accounting for the Distribution of Income in the U.S. National Accounts (PDF). NBER Conference on Research in Income and Wealth. Archived from the original (PDF) on January 22, 2020.
  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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