What is household income?
Household income is the total amount of money earned by all members of a household in a year. It is an important economic indicator and is used to define levels of poverty and affluence, as well as help to measure disparities in wealth across different population groups.
Household income includes wages and salaries from all members of the household, as well as other sources such as investments, rental income, Social Security benefits, pension payments, and any other type of transfer payment received over the course of a year.
How household income is useful for a country?
In many countries, household income is the primary indicator used to determine economic well-being and wealth distribution among households. It can be used to compare average incomes between different areas or regions; for example, one might compare average household incomes between rural areas and cities, or between two different countries.
Additionally, averages can be calculated based on racial or ethnic backgrounds to measure differences in financial stability across certain demographic populations.