Monday, 23 January 2012

Mean

I was just about able to believe that £26,000 was the mean, certainly not the median, gross income. But net? So that the gross figure is around £35,000? Pull the other one.
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4 comments:

  1. Sui Juris24 January 2012 at 00:22

    It's the median household income. My back-of-the-envelope calculation suggests it's actually a bit lower, around £33,000 gross, but it seems about right.

    Since the average household contains about 1.8 adults, the median (gross) individual income is a shade over £20,000, and possibly (I can't immediately find the figures) the mean gross individual income might also be around £26,000. That is the figure you are thinking of, I suspect.

    But in this case it is households that are being compared. The net median household income is therefore around £26,000, as stated.

    In respect to tonight's Lords' amendment, and for what it's worth, I calculate that the amount of income from Child Benefit in the median household would be around £1600.

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  2. David Lindsay24 January 2012 at 00:39

    No, that must be a mean figure. The median household income is in the low twenties. To be honest, I am surprised that the Coalition didn't prefer that.

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  3. Sui Juris24 January 2012 at 09:49

    Sorry, David, but you have misunderstood the measurement of this. The figure you are thinking of now is the "equivalent adult" in the "median household". That's often quoted as a reasonable guide to household income standards, because it takes into account the wide variation of household sizes, and is therefore a better comparator between countries.

    Median household income is about 1 1/2 times the equivalent adult figure. If the equivalent figure is in the low twenties the actual household median gross income will be, as I say, in the low to mid thirties.

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  4. David Lindsay24 January 2012 at 17:04

    No, I know that I am right about this. Everyone who is politically active in anti-poverty work knows this, although journalists often misquote it.

    They will say that 22 or 23 is the median wage for full-time work (gross, not net). It isn't. It's the median household income. Think on that, and consider the reality of wealth and poverty in this country.

    You probably think that you are in the middle. It is very clear that you are not. Not if your entire household has a combined annual income above 22 or 23 grand.

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