HOUSEHOLD INCOME AND WEALTH - OECD

HOUSEHOLD INCOME AND WEALTH

INCOME AND SAVINGS

NATIONAL INCOME PER CAPITA HOUSEHOLD DISPOSABLE INCOME

HOUSEHOLD SAVINGS

INCOME INEQUALITY AND POVERTY

INCOME INEQUALITY POVERTY RATES AND GAPS

HOUSEHOLD WEALTH

HOUSEHOLD FINANCIAL ASSETS HOUSEHOLD DEBT

NON-FINANCIAL ASSETS BY HOUSEHOLDS

HOUSEHOLD INCOME AND WEALTH ? INCOME AND SAVINGS

NATIONAL INCOME PER CAPITA

While per capita gross domestic product is the indicator most commonly used to compare income levels, two other measures are preferred, at least in theory, by many analysts. These are per capita Gross National Income (GNI) and Net National Income (NNI). Whereas GDP refers to the income generated by production activities on the economic territory of the country, GNI measures the income generated by the residents of a country, whether earned on the domestic territory or abroad.

Definition

GNI is defined as GDP plus receipts from abroad less payments to abroad of wages and salaries and of property income plus net taxes and subsidies receivable from abroad. NNI is equal to GNI net of depreciation.

Wages and salaries from abroad are those that are earned by residents who essentially live and consume inside the economic territory but work abroad (this happens in border areas on a regular basis) or for persons that live and work abroad for only short periods (seasonal workers) and whose centre of economic interest remains in their home country. Guest-workers and other migrant workers who live abroad for twelve months or more are considered to be resident in the country where they are working. Such persons may send part of their earnings to relatives at home, but these remittances are treated as transfers between resident and non-resident households and are recorded in national disposable income but not national income.

Property income from/to abroad includes interest and dividends. It also includes all or part of the retained earnings of foreign enterprises owned fully or in part by residents (and vice versa). In this respect, it is important to note that retained earnings of foreign enterprises owned by residents do not actually return to the residents concerned. Nevertheless, the retained earnings are recorded as a receipt. As such, it is an imputation, and, since there is no actual transaction, it is necessary to impute an outflow of the same amount. The imputed outflow is treated as a financial transaction (a reinvestment of earnings abroad) and not as an outflow of property income. Countries with large stocks of outward foreign direct investment may be shown as having large receipts of property income from abroad and therefore high GNI even though much of the

Overview

Ranking countries according to GNI per capita, shows that on average GNI per capita is usually around 15-19% higher than NNI per capita. The country rankings are not greatly affected by the choice of income measure. The only countries that would be more than one place lower in the ranking if NNI per capita were used instead of GNI are Belgium, Hungary and Japan; the only countries that would be more than one place higher in the ranking if NNI per capita were used are Canada, Israel, Korea and the Russian Federation.

GNI per capita does not differ significantly from GDP per capita. Usually, the differences are (significantly) smaller than USD 2 000. There are, however, four exceptions. For Luxembourg, GNI per capita in 2010, although still highest in the OECD, is nearly USD 25 000 lower than GDP per capita. In Iceland and Ireland, GNI is USD 6 000-7 000 lower. On the other hand, GNI in Switzerland is higher than GDP per capita by approximately USD 3 000.

property income may never actually be returned to the country but instead add to foreign direct investment.

Comparability

All countries compile data according to the 1993 SNA "System of National Accounts, 1993" with the exception of Australia where data are compiled according to the new 2008 SNA. It's important to note however that differences between the 2008 SNA and the 1993 SNA do not have a significant impact of the comparability of the indicators presented here and this implies that data are highly comparable across countries. However, there are practical difficulties in the measurement both of international flows of wages and salaries and property income and of depreciation. It is for that reason that GDP per capita is the most widely used indicator of income or welfare, even though, GNI is theoretically superior.

Sources

? OECD (2012), National Accounts of OECD Countries, OECD Publishing.

Further information

Analytical publications

? OECD (2012), OECD Economic Outlook, OECD Publishing.

? OECD (2011), Perspectives on Global Development, OECD Publishing.

? OECD (2003), The Sources of Economic Growth in OECD Countries, OECD Publishing.

Statistical publications

? OECD (2011), National Accounts at a Glance, OECD Publishing.

? Maddison, A. (2003), The World Economy: Historical Perspectives, Development Centre Studies, OECD Publishing.

Methodological publications

? OECD (2000), System of National Accounts, 1993 ? Glossary, OECD Publishing.

? United Nations, OECD, International Monetary Fund and Eurostat (eds.) (2010), System of National Accounts 2008, United Nations, Geneva.

Online databases

? OECD National Accounts Statistics. ? OECD Economic Outlook: Statistics and Projections.

Websites

? OECD Economic Outlook ? Sources and Methods, eco/sources-and-methods.

? The World Economy (supplementary material), .

OECD Factbook 2013 ? OECD 2012 - Preliminary Version

HOUSEHOLD INCOME AND WEALTH ? INCOME AND SAVINGS

Australia Austria Belgium Canada Chile Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States Euro area EU27 OECD

Brazil China India Indonesia Russian Federation South Africa

1999

26 053 26 705 25 859 26 220

8 863 14 543 26 699

8 632 23 307 23 994 24 694 17 025 10 433 28 071 22 574 20 347 24 225 24 940 15 407 44 091

9 027 27 226 18 954 29 550

9 940 16 579 10 348 16 761 19 638 25 739 32 540

.. 24 145 33 652 23 101 20 510 23 023

.. .. .. .. 5 661 6 254

2000

27 197 28 421 28 301 27 743

9 259 15 281 28 221

9 542 25 478 25 608 25 496 18 320 11 294 28 051 24 973 21 923 25 562 26 339 17 109 46 759

9 807 30 049 19 812 35 649 10 532 17 429 10 922 17 565 21 135 27 722 34 737

.. 26 024 35 658 24 427 21 817 24 497

.. .. .. 2 280 6 622 6 545

Gross national income per capita

US dollars, current prices and PPPs

2001

28 299 28 408 28 981 28 502

9 693 16 362 29 017 10 255 26 494 26 972 26 405 19 894 12 720 29 482 26 063 22 351 27 093 27 008 18 109 47 898

9 925 31 015 20 869 37 118 10 922 18 035 12 066 18 477 22 214 28 021 34 515

.. 27 732 36 410 25 608 22 938 25 253

.. .. .. 2 458 7 234 6 716

2002

29 470 30 086 30 461 29 162

9 888 16 926 30 393 11 475 27 577 27 862 27 077 21 485 13 906 31 033 27 656 22 518 26 759 27 671 19 668 47 736 10 214 32 235 21 618 37 166 11 524 18 840 12 918 19 649 23 705 29 163 35 425

.. 29 318 37 002 26 382 23 855 25 953

.. .. .. 2 594 7 857 7 028

2003

30 973 31 016 30 753 30 530 10 159 18 115 30 243 12 678 27 407 27 554 28 114 22 392 14 630 30 294 29 764 21 309 27 082 28 429 20 197 47 079 10 690 32 066 22 299 38 501 11 869 19 268 12 924 20 358 24 468 30 795 36 724

.. 30 258 38 307 26 863 24 449 26 715

.. .. .. 2 712 8 951 7 276

2004

32 074 32 611 31 534 32 167 10 809 19 129 32 438 14 044 30 088 28 554 29 939 23 721 15 341 32 362 31 562 22 746 27 432 29 874 21 688 56 788 11 370 34 086 23 106 42 560 12 641 19 642 14 065 22 011 25 611 32 488 38 042

.. 32 226 40 583 28 091 25 753 28 234

.. 3 608

.. 2 861 10 007 7 820

2005

33 527 33 310 32 415 34 448 11 629 20 372 33 659 15 902 30 849 30 017 31 469 23 994 16 058 33 731 33 553 23 012 28 288 31 150 22 762 58 720 12 243 35 281 23 570 47 967 13 516 21 052 15 717 23 273 27 003 32 936 40 027

.. 33 281 43 063 29 380 26 933 29 762

.. 4 121

.. 3 051 11 531 8 429

2006

35 169 36 193 34 547 36 501 12 104 22 072 36 721 18 145 33 454 31 988 34 235 26 219 17 312 33 740 37 286 23 745 30 491 32 700 24 284 59 764 13 469 39 112 25 159 53 884 14 693 22 274 17 816 25 142 29 896 36 161 43 850

.. 35 215 45 575 31 828 29 164 31 828

.. 4 773

.. 3 301 14 482 9 079

2007

37 098 37 614 36 025 37 860 13 034 23 640 38 129 20 151 36 183 33 722 36 171 26 928 17 611 35 338 39 365 25 414 32 039 34 489 26 150 68 022 14 219 41 412 26 474 55 698 16 160 23 433 20 224 26 639 31 481 39 355 44 724

.. 36 234 46 675 33 557 30 801 33 217

.. 5 589

.. 3 571 16 335 9 599

Statlink

2008

37 531 39 692 37 564 38 493 14 226 24 659 40 472 20 970 38 244 34 769 37 590 28 604 19 122 31 011 36 897 24 962 33 008 34 699 26 888 67 210 15 030 42 017 27 012 61 049 17 660 24 048 22 728 28 248 32 243 40 995 44 368

.. 36 665 47 209 34 547 31 943 34 012

.. 6 210

.. 3 844 19 673 10 065

2009

38 429 38 651 36 512 37 256 14 221 23 901 38 918 19 224 36 224 34 298 36 816 28 668 19 265 29 504 33 070 24 813 32 101 32 980 27 051 55 760 14 101 40 064 28 170 55 026 18 270 23 922 22 227 26 601 31 431 38 042 47 385

.. 34 971 45 331 33 810 31 124 32 905

.. .. .. 4 014 18 278 10 006

2010

39 136 39 972 38 396 38 372 15 058 23 557 41 128 19 376 36 847 34 910 38 124 27 668 19 555 29 365 33 552 25 764 31 751 34 645 28 834 61 346 14 982 41 838

.. 57 945 19 239 24 616 22 945 26 544 31 437 40 136 51 537

.. 35 844 47 195 34 381 31 772

..

.. .. .. 4 221 .. 10 322

2011

.. 41 988 39 374

.. 16 336 24 285 42 237 20 825 37 846 35 796 39 944 26 077

.. 30 759

.. .. 32 720 .. 30 336 .. .. 43 277 .. 62 954 .. 24 431 23 564 26 950 31 736 42 253 .. .. 35 885 .. 35 387 32 752 ..

.. .. .. .. .. 10 743



Gross and net national income per capita

US dollars, current prices and PPPs, 2011 or latest available year

Statlink OECD Factbook 2013 ? OECD 2012 - Preliminary Version



HOUSEHOLD INCOME AND WEALTH ? INCOME AND SAVINGS

HOUSEHOLD DISPOSABLE INCOME

Disposable income, as a concept, is closer to the concept of income generally understood in economics, than either national income or GDP. At the total economy level it differs from national income in that additional income items are included, mainly other current transfers such as remittances. For countries where these additional items form significant sources of income the importance of focusing on disposable income in formulating policy is clear. Another important difference between national income and disposable income concerns the allocation of income across sectors. At this level significant differences arise. In the main these reflect the reallocation of national income: from corporations and households to government, on account of income taxes; from households to government to reflect social contributions; and, from government and corporations to households to reflect social benefits other than social transfers in kind. It is mainly this reallocation of income that brings the concept of income closer to the economic concept. Disposable income can be seen as the maximum amount that a unit can afford to spend on consumption goods or services without having to reduce its financial or non-financial assets or by increasing its liabilities.

of Australia where data are compiled according to the new 2008 SNA. It's important to note however that differences between the 2008 SNA and the 1993 SNA do not have a significant impact of the comparability of the indicators presented here and this implies that data are highly comparable across countries.

Real household disposable income

Annual growth in percentage

Definition

Household disposable income is the sum of household final consumption expenditure and savings (minus the change in net equity of households in pension funds). It also corresponds to the sum of wages and salaries, mixed income, net property income, net current transfers and social benefits other than social transfers in kind, less taxes on income and wealth and social security contributions paid by employees, the self-employed and the unemployed.

The indicator for the household sector includes the disposable income of non-profit institutions serving households (NPISH). The price deflator used to obtain real values is consistent with that used to deflate the final consumption expenditure of households and NPISH.

Comparability

All countries compile data according to the 1993 SNA "System of National Accounts, 1993" with the exception

Statlink



Sources

? OECD (2012), National Accounts of OECD Countries, OECD Publishing.

? OECD (2011), National Accounts at a Glance, OECD Publishing.

Further information

Overview

In average over the period 2008-10, household disposable income in real terms increased for all OECD countries with some notable exceptions. In Greece, Hungary and Estonia, household disposable income fell by 9-13% in the three year period. Of the 28 OECD countries where information is available, decreases in disposable income were also recorded in Italy, Mexico, Portugal, the Netherlands and Austria. All other countries saw increases in real household disposable income in the period 2008-10. Chile, New Zealand, Norway and the Slovak Republic showed increases of over 10% for this three year period.

Across OECD countries, comparisons of growth of real household disposable income over the three years to 2010 compared to growth in the three years to 2001 show a rather consistent picture, with most countries showing slower growth. An exception is Japan, where moderate growth rates in the recent period compare to an average fall in the three years up to 2001.

Statistical publications

? OECD (2012), Taxing Wages, OECD Publishing. ? OECD (2011), OECD Pensions at a Glance, OECD

Publishing. ? OECD (2011),

Society at a Glance: OECD Social Indicators, OECD Publishing.

Methodological publications

? OECD (2007), Understanding National Accounts, OECD Publishing.

? OECD (2000), System of National Accounts, 1993 ? Glossary, OECD Publishing.

? United Nations, OECD, International Monetary Fund and Eurostat (eds.) (2010), System of National Accounts 2008, United Nations, Geneva.

Online databases

? OECD Social Expenditure Statistics.

OECD Factbook 2013 ? OECD 2012 - Preliminary Version

HOUSEHOLD INCOME AND WEALTH ? INCOME AND SAVINGS

Australia Austria Belgium Canada Chile Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States Euro area EU27 OECD

Brazil China India Indonesia Russian Federation South Africa

1999

3.4 4.0 2.5 2.9 -0.9 2.0 -3.8 -1.9 4.5 2.7 1.8

.. 1.5

.. .. .. 1.5 -0.4 2.8 .. .. 2.1 7.8 2.5 3.5 6.6 -1.3 3.5 .. 2.9 3.0 .. 2.7 3.1 .. .. ..

.. .. .. .. .. 2.0

2000

3.3 1.8 1.8 4.8 3.5 2.0 0.5 11.2 0.6 3.1 0.9

.. 1.2

.. .. .. 0.1 -0.9 0.4 .. .. 2.2 -4.1 3.8 1.7 3.6 2.0 4.5 .. 5.1 2.7 .. 4.7 4.8 1.7 2.2 ..

.. .. .. .. .. 3.7

Real household disposable income

Annual growth in percentage

2001

3.5 -0.5 3.1 2.8 3.2 2.3 3.7 5.9 3.2 3.1 1.7 4.1 5.2

.. .. .. 3.0 -2.1 0.9 .. .. 5.6 3.7 0.0 4.1 1.6 3.0 4.6 3.1 6.5 2.9 .. 5.4 2.5 2.8 3.5 ..

.. .. .. .. .. 2.8

2002

1.1 1.5 -0.2 1.8 2.2 3.0 2.0 7.0 2.2 3.5 0.0 2.6 6.4

.. .. .. 1.2 1.0 3.4 .. .. -0.6 -0.5 8.0 -1.0 1.0 5.1 3.2 3.0 3.1 -1.3 .. 2.4 3.6 1.4 1.6 ..

.. .. .. .. .. 3.5

2003

4.3 1.8 -0.2 2.1 3.4 4.0 2.4 7.3 6.0 0.5 0.7 4.7 5.5

.. 0.3

.. 0.5 0.0 4.9

.. .. -2.5 8.4 4.6 1.2 0.3 -0.7 0.6 3.7 0.9 -0.8 .. 3.2 2.9 1.0 1.6 ..

.. .. .. .. 7.7 4.0

2004

4.0 2.6 -0.2 3.8 7.8 1.8 2.7 2.0 4.8 2.1 0.6 3.1 4.0

.. 5.8

.. 0.9 1.1 4.7

.. 4.0 0.6 5.8 3.3 1.7 1.7 3.9 3.9 2.7 1.3 2.3

.. 0.4 3.1 1.6 1.5

..

.. .. .. .. 9.4 5.8

2005

4.5 2.8 0.1 2.5 7.7 5.1 2.2 11.0 1.0 1.1 0.4 1.9 3.6

.. 7.8

.. 0.6 0.9 2.3

.. 4.6 -0.3 2.4 7.8 1.5 0.7 6.2 4.1 3.8 1.9 2.2

.. 2.0 1.4 1.3 1.6

..

.. .. .. .. 11.9 5.0

2006

5.5 2.7 2.7 5.7 7.0 5.6 1.8 10.8 2.7 2.4 1.2 2.9 1.7

.. 4.3

.. 0.9 0.8 2.6

.. 5.5 0.5 2.1 -6.4 4.5 -0.4 3.4 3.2 3.0 3.6 3.7

.. 1.1 4.0 1.7 1.8

..

.. .. .. .. 13.6 6.9

2007

2.7 2.6 2.2 3.8 7.1 3.8 0.1 11.8 3.6 3.0 0.0 9.4 -3.0

.. 6.9

.. 1.0 0.8 2.7 4.0 3.4 2.6

.. 6.3 4.6 1.9 9.1 4.5 3.2 5.5 4.1

.. 1.1 2.0 2.1 2.1

..

.. .. .. .. 14.1 5.2

Statlink

2008

6.9 0.7 2.1 4.2 4.9 2.1 -0.2 0.4 2.4 0.2 1.0 -4.5 -1.8

.. 5.0

.. -1.4 -1.2 1.3 4.2 1.0 -0.3

.. 3.9 4.0 1.6 5.0 2.7 3.0 2.3 0.1

.. 1.3 2.7 0.4 1.1

..

.. .. .. .. 8.0 0.3

2009

.. -1.5 2.8 1.1 7.4 1.3 0.2 -6.7 1.9 1.2 -0.7 1.7 -4.3

.. -2.0

.. -3.0 1.3 1.6 1.4 -7.7 -1.1

.. 3.9 4.8 1.8 2.2 -0.4 2.2 2.2 1.5

.. 1.5 -2.1 -0.1 0.5

..

.. .. .. .. -1.4 1.8

2010

.. -0.2 -1.3 3.5 5.9 0.2 3.8 -2.7 2.5 0.9 0.9 -10.3 -4.0

.. -2.2

.. -0.9 2.5 4.1

.. 4.1 -0.1

.. 3.5 2.7 1.3 3.2 0.3 -4.6 1.2 1.8

.. 0.5 2.2 -0.6 -0.4

..

.. .. .. .. .. 5.8

2011

.. .. -1.1 .. .. .. 1.1 .. 0.0 0.6 .. .. .. .. .. .. .. .. 0.9 .. .. -0.2 .. 4.2 .. -4.6 .. .. .. 3.0 .. .. .. .. -0.1 -0.1 ..

.. .. .. .. .. ..



Real household disposable income

Average annual growth in percentage

Statlink OECD Factbook 2013 ? OECD 2012 - Preliminary Version



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