Median household income

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.

Household income is not to be confused with family or personal income.

Gallup gross median household income

In 2013, Gallup published a list of countries with median household income.^[1] Using median, rather than mean income, results in a much more accurate picture of the average income of the middle class since the data will not be skewed by gains and abnormalities in the extreme ends. The figures are in international dollars using purchasing power parity and are based on responses from at least 2,000 adults in each country, with the data aggregated from 2006 to 2012. Below is a list of the top 30 countries. The figures are before deduction of taxes and social contributions and not adjusted for household size.

Rank Country/Territory Gross household income in USD PPP[2] 1  Luxembourg 52,493 2  Norway 51,489 3  Sweden 50,514 4  Australia 46,555 5  Denmark 44,360 6  United States 43,585* 7  Canada 41,280 8  South Korea 40,861 9  Kuwait 40,854 10  Netherlands 38,584 11  New Zealand 35,562 12  Hong Kong 35,443 13  Austria 34,911 14  Finland 34,615 15  Japan 34,822 16  Germany 33,333 17  Taiwan 32,762 18  Singapore 32,360 19  United Kingdom 31,617 20  France 31,112 21  Israel 30,364 22  Belgium 26,703 23  Qatar 26,555 24  Slovenia 25,969 25  Ireland 25,085 26  Saudi Arabia 24,980 27  Bahrain 24,633 28  Czech Republic 22,913 29  Spain 21,959 30  Italy 20,085

• Based on analysis on US median household income, when matched with administrative files and national accounts data, Median household money income during the 2006-2012 period averaged $60,012, therefore by comparison the Gallup result is underreported and is even below the Census' own figures. See Table 3 ^[3]

OECD Statistics

The annual median equivalence disposable household income for selected countries is shown in the table below. This is the disposable income of an equivalent adult in a household in the middle of the income distribution in a year.

Data are in United States dollars at current prices and current purchasing power parity for private consumption for the reference year.

Rank	Country	Median income (US$, PPP)[4]	Year[5]
1	Luxembourg	37,178	2011
2	Norway	33,928	2011
3	Switzerland	33,669	2011
4	United States	30,932*	2012
5	Australia	29,993	2012
6	Austria	28,495	2011
7	Canada	28,404	2011
8	Sweden	26,644	2011
9	Denmark	26,421	2011
10	Finland	25,864	2012
11	Netherlands	25,487	2012
12	Germany	24,623	2011
13	Iceland	24,499	2011
14	Belgium	24,408	2010
15	France	24,233	2011
16	South Korea	23,236	2012
17	New Zealand	22,722	2011
18	Ireland	22,101	2011
19	United Kingdom	21,470	2011
20	Italy	21,444	2011
21	Slovenia	19,994	2011
22	Japan	19,974	2009
23	Spain	17,191	2011
24	Israel	16,260	2011
25	Slovakia	14,351	2011
26	Czech Republic	14,189	2011
27	Greece	13,366	2011
28	Portugal	13,116	2011
29	Poland	12,615	2011
30	Estonia	10,837	2011
31	Russia	10,765	2010
32	Hungary	10,476	2012
33	Chile	8,540	2011
34	Turkey	7,958	2011
35	Mexico	4,508	2012

• Based on analysis of the CPS data, US median household income (based on "cash income" definition) has been consistently underestimated by a ratio of 83-85% (mean under-counted by 75%), thus making "true" median income $37,228-$38,272 but-for the undercounting.^[6] Other analysis has shown varying mean rates of quality among countries; For example, Norway, Sweden, Denmark, Netherlands, Germany, Austria, and UK all captured a mean of 85% or more income as compared to the national accounts (details in link—Appendix 4).^[7]

Median household income and the US economy

This graph shows the income of the given racial and ethnic groups, in 2011 dollars.^[8]

Since 1980, U.S. gross domestic product (GDP) per capita has increased 67%,^[9] while median household income has only increased by 15%. An economic recession will normally cause household incomes to decrease, often by as much as 10% (Figure 1).

Median household income is a politically sensitive indicator. Voters can be critical of their government if they perceive that their cost of living is rising faster than their income. Figure 1 shows how American incomes have changed since 1970. The last recession was the early 2000s recession and was started with the bursting of the dot-com bubble. It affected most advanced economies including the European Union, Japan and the United States.

The current crisis began with the bursting of the U.S. housing bubble, which caused a problem in the dangerously exposed sub prime-mortgage market. This in turn has triggered a global financial crisis. In constant price, 2011 American median household income is 1.13% lower than what it was in 1989. This corresponds to a 0.05% annual decrease over a 22-year period.^[10] In the mean time, GDP per capita has increased by 33.8% or 1.33% annually.^[11]

A comparison between Median Equivalised Household Income and GDP per Capita in USD for select developed countries is shown in the chart below.^[12][13]

See also

• List of countries by average wage
• List of U.S. states by income
• Mean household income
• Income distribution
• Income quintiles
• Household income in the United States
• International Ranking of Household Income
• Median
• Median household income in Australia and New Zealand
• Median income per household member
• Places in the United States with notable demographic characteristics
• Poverty in the United States

References