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The per capita income for a group of people may be defined as their total personal income, divided by the total population. Per capita income is usually reported in units of currency per year.

Per capita income as a measure of wealth


Per capita income is often used as a measure of the wealth of the population of a nation, particularly in comparison to other nations. It is usually expressed in terms of a commonly-used international currency such as the Euro or United States dollar, and is useful because it is widely known and produces a straightforward statistic for comparison.

Particularly when comparing countries with substantially different levels of wealth, however, it has several weaknesses as a measurement.

  • Economic activity that does not result in monetary income, such as services provided within the family, or for barter, are usually not counted. The importance of these services will vary widely between different economies, both between countries and among different groups within a country. See: Informal economy

  • Per capita income gives no indication of the distribution of that income within the country, so a small wealthy class can increase the measured per-capita income far above that of the majority of the population. See: Income inequality metrics

  • Differing currency exchange rates between countries mean that a given amount of money (for example, one US dollar) has differing values in different places. See: Purchasing power

Some national per capita income levels


Data on Per capita income based on a country's total personal income is very difficult to find.

Much more commonly used due to its availability is the Gross domestic product (GDP).

Total personal income is lower than the Gross domestic income.

A list of the top ten countries, and the lowest-ranking country, by GDP per capita (in terms of Purchasing Power Parity, or PPP):

1. Luxembourg 69,800
2. Norway 42,364
3. United States 41,399
4. Ireland 40,610
5. Iceland 35,586
6. Denmark 34,737
7. Canada 34,273
8. Austria 33,615
9. Hong Kong, SAR 33,411
10. Switzerland 32,571
192. East Timor 400
''Sources: International Monetary Fund, World Economic Outlook Database, April 2006 *

A complete list of countries by GDP (PPP) per capita

See also


External links


  • http://web.worldbank.org/servlets/ECR?contentMDK=20421402&sitePK=239419
  • http://www.imf.org/external/pubs/ft/weo/2005/02/data/index.htm

Income

Důchod na hlavu | Renta per cápita | Revenu par tête | Renda per capita | Thu nhập trên đầu người

 

This article is licensed under the GNU Free Documentation License. It uses material from the "Per capita income".

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