Themedian income is theincome 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 themean (oraverage) income. Both of these are ways of understandingincome distribution.Median income can be calculated byhousehold income, bypersonal income, or for specific demographic groups. Whentaxes and mandatory contributions are subtracted from income, the result is called net or disposable income. 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]
The median equivalised household disposable income is themedian of thedisposable income which isequivalised by dividing income by the square root of household size; the square root is used to acknowledge that people sharingaccommodation benefit from pooling at least some of their living costs. The median equivalised disposable income for individual countries corrected forpurchasing power parity (PPP) for 2021 inUnited States dollars is shown in the below table.[2]
| Location | 2021 (USDPPP) |
|---|---|
| Luxembourg | 49,748 |
| United States | 46,625 |
| Norway | 41,621 |
| Switzerland | 39,698 |
| Canada | 39,388 |
| Austria | 37,715 |
| Belgium | 37,110 |
| Iceland | 36,853 |
| Australia | 36,835 |
| Netherlands | 35,891 |
| Germany | 35,537 |
| Denmark | 34,061 |
| Sweden | 33,472 |
| New Zealand | 32,158 |
| South Korea | 31,882 |
| Ireland | 31,392 |
| Finland | 30,727 |
| France | 30,622 |
| Slovenia | 28,698 |
| Italy | 27,949 |
| United Kingdom | 26,884 |
| Spain | 26,630 |
| Estonia | 26,075 |
| Poland | 24,264 |
| Czech Republic | 23,802 |
| Israel | 21,366 |
| Japan | 21,282 |
| Lithuania | 20,856 |
| Latvia | 19,908 |
| Croatia | 19,680 |
| Portugal | 19,147 |
| Greece | 16,774 |
| Slovak Republic | 16,410 |
| Romania | 15,898 |
| Hungary | 15,361 |
| Bulgaria | 14,990 |
| India | 10,800 |
| Turkey | 10,341 |
| Chile | 10,101 |
| Costa Rica | 8,915 |
| Brazil | 8,460 |
| Mexico | 6,090 |
| South Africa | 6,068 |