mediaanitulokseen

Median income, often referred to as mediaanitulokseen in Finnish, represents the midpoint of income distribution. It is the income level that separates the higher half of earners from the lower half. To calculate median income, all incomes are listed in ascending order, and the income in the middle is selected. If there is an even number of incomes, the median is the average of the two middle incomes.

Unlike average income (keskitulokseen), which can be skewed by a few very high earners, median income provides a more representative picture of the typical income in a population. This is because it is less affected by extreme values at either end of the income spectrum. For instance, if a small number of individuals earn exceptionally high incomes, the average income would be pulled upwards significantly, whereas the median income would remain closer to the earnings of the majority.

Median income is a crucial indicator for understanding economic inequality and the financial well-being of a population. Policymakers, economists, and researchers use it to assess the effectiveness of economic policies, track changes in living standards, and compare income levels across different regions or countries. A rising median income generally suggests that the economic situation for the typical household is improving. Conversely, a stagnant or declining median income can signal economic challenges or increasing inequality. It is a widely used metric in social and economic analysis.