Incomes

Incomes are the monetary returns received by individuals or households over a given period, typically a year. They form a central measure of economic welfare and are used alongside wealth and consumption to gauge living standards. Incomes differ from wealth, which is the stock of accumulated assets, while income represents a flow of resources over time.

Categories commonly include earned income (wages, salaries, self-employment earnings), unearned income (interest, dividends, rent, and capital gains), and transfer income (pensions, unemployment benefits, social assistance, and child benefits). In some analyses, imputed income, such as the estimated value of home ownership or in-kind transfers, is also included.

Income can be measured before taxes (gross income) or after taxes and transfers (disposable income). Key indicators include mean and median household income, income per capita, and the share of income earned by different quintiles. Data come from household surveys and national accounts; estimates may exclude informal earnings or underreport certain sources.

Policy relevance: income levels influence poverty measures, consumption, saving, and investment. Governments use income data to design taxation, welfare, minimum-wage standards, and social insurance programs. Debates on income focus on inequality, mobility, and the effects of tax and transfer systems on incentives.