Median household income from work up 2.7%: Department of Statistics

[Musicwhiz]

Pop the champagne? Should we all feel very much happier?

The Straits Times
www.straitstimes.com
Published on Feb 20, 2013
Median household income from work up 2.7%: Department of Statistics

By Goh Chin Lian

Median monthly household income from work rose from $7,040 in 2011 to $7,570 last year, said the Department of Statistics Singapore on Wednesday.

This is a 7.5 per cent increase in nominal terms, or 2.7 per cent after factoring in inflation.

Taking into consideration changes in household size, median monthly household income from work for each household member rose by 1.9 per cent in real terms over the same period, and 13 per cent over five years from 2007 to last year.

The report from the Department of Statistics also noted that the Gini coefficient, a measure of income inequality, increased from 0.473 in 2011 to 0.478 last year.

But after taking into account government transfers and taxes, the figure is 0.459.

For more info on Gini Coefficient:- http://en.wikipedia.org/wiki/Gini_coefficient

[Stockerman]

But this median household income includes employer's contribution of the CPF?
so the figure is kind of inflated.

Why dont DOS stick with gross annual income divide by 12 (excluding employer's contribution to CPF)

[piggo]

Income increase... income inequality also increase... haha

[Musicwhiz]

The Straits Times
www.straitstimes.com
Published on Feb 21, 2013
Gap widens but Workfare helps

THE income gap in Singapore widened last year despite Workfare and other government transfers given to the poor and taxes paid by those who are better off.

The Gini coefficient, a measure of income inequality, rose from 0.448 in 2011 to 0.459 last year.

But the gap would have widened further - from 0.473 to 0.478 - if there had been no government help, noted a Department of Statistics (DOS) report released yesterday.

It shows that the income of each family member of households at the top 10 per cent was 9.14 times that of the bottom 10 per cent last year, "slightly lower" than the previous year of 9.19.

But when transfers and taxes are included, the figure for last year falls to 7.87.

The report also gave Gini figures based on two measurements used by other economies.

Singapore's statisticians divide family income by the number of family members, as it is the "simplest and most intuitive method", DOS said.

Japan, Taiwan, Hong Kong, Thailand and Vietnam do so, too.

But developed countries, such as Australia, Britain and other European Union countries, use the modified OECD scale.

They assign the first adult in the family one point, each additional adult 0.5 points, and each child, 0.3 points. It then divides total household income by the sum of the points allocated.

Using this method, Singapore's Gini last year is lower at 0.457, and after government transfers and taxes, 0.437.

Another method, used in the OECD report, divides household income by the square root of the family size. Singapore's income gap narrows even more with this scale to 0.435, and after transfers and taxes, 0.414.

The DOS said no single international standard is adopted by all countries, but Singapore's Gini has "similar trends over time under the three methods".

Bank of America Merrill Lynch economist Chua Hak Bin said government transfers have helped to "contain the wide income inequality, but the impact may not be sufficiently large".

As rents appear to be the major reason for high inflation faced by lower-income families, he suggested that the Government increase the stock of public rental flats more aggressively and give rental and utility rebates.

He also recommended larger Workfare payments.

He said the Government should ensure lower-income families are "at least seeing real income increases in line with the median or average household".

GOH CHIN LIAN