Medianinntekten

Medianinntekten is the income value that divides a population into two equal halves when incomes are ordered from lowest to highest. It can be calculated for individuals, households, or equivalised disposable income, and may refer to gross income (before taxes) or net income (after taxes and transfers).

The median provides a measure of the central tendency that is less affected by very high incomes than the mean, making it a common indicator of typical earnings. It is widely used to assess living standards, monitor changes in earnings over time, and compare different groups, regions, or policy regimes. Because definitions vary, median income is often reported in several forms, such as gross versus net, per person versus per household, and unadjusted versus equivalised measures.

Data sources for median income include administrative tax records and household surveys. Differences in methodology, tax systems, and whether the measure is before or after taxes can affect cross-country and temporal comparability. Equivalised disposable income adjusts for household size and composition, improving comparability of living standards across households.

Limitations of the median include its inability to convey the full distribution of income or levels of inequality. Two populations can have the same median yet differ markedly in how income is distributed around it. For a fuller picture, median income is often considered alongside other indicators such as the mean, the poverty rate, and inequality measures like the Gini coefficient.