indkomst

Indkomst is the Danish term for income. In economic and statistical usage, it denotes the monetary resources received by an individual or a household in a defined period, typically one year. Indkomst encompasses earnings from work as well as returns on capital, and it can be measured before or after taxation, depending on context. The more commonly used measures distinguish gross income from net or disposable income after taxes and transfers.

The components of indkomst include wage or salary (lønindkomst), income from self-employment or business activity (erhvervsindkomst), and capital income (kapitalindkomst) such as interest, dividends, rents, and capital gains. Government transfers (overførsler) like pensions, unemployment benefits, and social assistance also contribute to indkomst, especially for households with limited labor income or high needs.

Measurement and variation: In statistics, indkomst is measured per person or per household and can be adjusted for household size using equivalence scales. Disposable income, or disponibel indkomst, refers to income after direct taxes and regular transfers. Data sources include tax records, household surveys, and national accounts, with different definitions used for international comparisons.

Uses and policy relevance: Indkomst is central to analyses of living standards, poverty, and inequality, as well as to tax policy and welfare design. It supports measures such as inequality indices and poverty thresholds and informs decisions about consumption, saving, and investment. Cross-country comparisons of indkomst often require harmonization of definitions and purchasing power adjustments.