Income

Income is the flow of resources received by an individual or a household over a period, usually expressed in monetary terms. It is a measure of the ability to purchase goods and services and is distinct from wealth, which is the stock of assets at a point in time. In most contexts, income includes earnings from work (wages, salaries, self-employment), returns on investments (interest, dividends, rents, capital gains), and government transfers (pensions, unemployment benefits, social assistance). In statistical practice, income is often reported in gross form before taxes and transfers, with disposable income representing what remains after taxes and social transfers.

Income can be measured for individuals, households, or nations. Common personal measures include gross income, taxable income, and disposable income. Real income adjusts nominal income for inflation to reflect changes in purchasing power. Income distribution examines how total income is spread across the population, using tools such as quintiles, percentiles, and inequality metrics like the Gini coefficient.

Data on income come from household surveys, tax records, and national accounts. Income policy—through taxation, social security, minimum wages, and transfers—aims to influence living standards, poverty, and inequality, and interacts with labor markets, savings, and growth. The concept of income is central in economics, demography, and public policy, shaping research and policy debates on welfare and economic opportunity.