Definition

Median income is the value that orders all individuals from lower to higher income, leaves one half of them below that value and the other half above. The value of the median income is a relative measure and its value depends on the level of income and how the income is distributed among the population in a given year. In order to convert household income to equivalent income (per unit of consumption) the concept of "consumption unit" is applied internationally, taking into account the economies of scale that occur according to the number and the ages of the people who share the home spends. A consumer unit is a person living alone. The equivalent income (income per unit of consumption) of a household is calculated by dividing the total disposable income of the household by the number of units of equivalent consumption that compose it, and the value of this ratio is assigned as income per unit of consumption equal to all members of that household.

Source

Quality of life indicators. Methodology

Topic

• Work, income and wage costs
• Standard, quality and conditions of life

Statistical operations

(links to the Inventory of Statistical Operations)

• 30471 - Living Quality Indicators (in project phase)

Concepts associated

There are no related concepts