Documentation of Indicators
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1 Documentation of Indicators Income and Income Distribution I001 Net National Product Level and Growth of Income Statistisches Bundesamt, Statistisches Jahrbuch; Jahresgutachten des Sachverständigenrats Per capita net national income; values until 1969 calculated according to the European System of National Accounts (ESVG) 1979 using prices as of 1991 (own conversion of DM into Euro values); Values of 1970 and later calculated according to the European System of National Accounts (ESVG) 1995 using prices as of 1995 (in Euro) starting from 2001 Berlin to West; starting from 2004 preliminary values; Until 1969: national accounts according to ESVG 1979, prices as of 1991, own conversion of DM-values into ; from 1970: national accounts according to ESVG 1995, prices as of I002 Growth of the Net National Product Level and Growth of Income Jahresgutachten des Sachverständigenrats Annual growth rate of the per capita net national product at market prices, prices kept constant as of 1991 (in percent) Page 1 of 8
2 I003 Ratio of Household Incomes in the old and new federal states (Bundesländer) (SOEP) Level and Growth of Income Ratio of the average equivalent income (need adjusted using the new OECD-equivalence scale) in East Germany to the corresponding average equivalent income of West Germany (in percent) I004 Concentration of Net Income (EVS) Income Inequality EVS, own calculations The Gini-Index of net-income. It is defined as the area between the Lorenz-Curve of the net income of private households per household member and the equal-distribution line, divided by the area below the equal-distribution line. An index-value of 0 indicates an equal distribution of incomes while an index-value of 1 suggests a totally unequal income distribution (i.e. a single person acquires all available income). separate income distributions for West and East Germany. Page 2 of 8
3 I005 Concentration of Net Income (SOEP) Income Inequality The Gini-Index of net-income. It is defined as the area between the Lorenz-Curve of the net income of private households per household member and the equal-distribution line, divided by the area below the equal-distribution line. An index-value of 0 indicates an equal distribution of incomes while an index-value of 1 suggests a totally unequal income distribution (i.e. a single person acquires all available income). I006 Share of the Net Income of the poorest 20% of the Population Income Inequality Income of the 20% of the population with the lowest need-adjusted net income per household member as a percentage of the net income of all private households I007 Share of the Net Income of the richest 10% of the Population Income Inequality Income of the 10% of the population with the highest need-adjusted net income per household member as a percentage of the net income of all private households Page 3 of 8
4 I008 Relative Poverty Rate - Total/West/East specific 40% Poverty Line (EVS) EVS, own calculations total, men over 64 years, women over 64 years, children under 18 years below 40% of national median equivalised household income (needadjusted I009 Relative Poverty Rate - Total/West/East specific 40% Poverty Line (SOEP) below 40% of national median equivalised household income (needadjusted I010 Relative Poverty Rate - Total/West/East specific 50% Poverty Line (EVS) EVS, own calculations total, men over 64 years, women over 64 years, children under 18 years below 50% of national median equivalised household income (needadjusted separate income distributions for West and East Germany. Page 4 of 8
5 I011 Relative Poverty Rate - West/East specific and Total German 60% Poverty Line (SOEP) West-/East specific poverty line: total, children under 18 years German head of household, children under 18 years foreign head of household, children over 18 years German head of household, children over 18 years foreign head of household, couples without children, couples with children, single parents; Total German poverty line: total, children under 18 years German head of household, children under 18 years foreign head of household, children over 18 years German head of household, children over 18 years foreign head of household, couples without children, couples with children, single parents below 60% of national median equivalised household income (needadjusted I01101 Relative Poverty Rate - West/East specific and Total German 60% Poverty Line (EVS) EVS, own calculations West-/East specific poverty line: total, men over 64 years, women over 64 years, children under 18 years; Total German poverty line: total, men over 64 years, women over 64 years, children under 18 years below 60% of national median equivalised household income (needadjusted Page 5 of 8
6 I012 Poverty Gap Rate total, German head of household, foreign head of household Distance between the average income of the poor and the 60%- income threshold of all persons (in percent) I013 Income Multiple for Factor Income (EVS) Commensurability of Income with Performance EVS-Datenbank, Prof. Hauser, Universität Frankfurt a.m. farmers, self-employed persons, civil servants, salaried employees, workers Average factor income of the households in the individual groups of factor income recipients (defined by occupational position) divided by the average factor income of all households of factor income recipients I014 Income Multiple for Income from Wages or Salaries (EVS) Commensurability of Income with Performance EVS-Datenbank, Prof. Hauser, Universität Frankfurt a.m. civil servants, salaried employees, workers Average base income from dependent employment of the individual salary- and wage-earning groups (defined by occupational position) divided by the average base income of all persons in dependent employment received for their salary- or wage-based labour Page 6 of 8
7 I015 Multiples of the Earned Income (SOEP) Commensurability of Income with Performance men, women, Germans, foreigners Average monthly earned income of the different population groups divided by the average earned income of all persons who work 10 or more hours a week I016 Satisfaction with One's Household Income (SOEP) Subjective Income Evaluation Mean value of the respondents' ratings for the question: "All in all, how satisfied are you with your household income?" on an 11-point rating scale from 0 ("completely dissatisfied") to 10 ("completely satisfied") I017 Concern About One's Own Economic Situation (SOEP) Subjective Income Evaluation The question was posed: "What about the following fields - are you very concerned about them?" Percentage of respondents who answered that they were very concerned about their "own economic situation" Page 7 of 8
8 I018 Importance of Income Subjective Income Evaluation Wohlfahrtssurvey, own calculations The question was posed: "How important for your well-being and satisfaction is the following: your income?" Percentage of respondents who answered "very important or important" Page 8 of 8
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Below is a basic checklist of most of the representative indicators used for understanding the conditions and degree of poverty in a country. The concept of poverty and the approaches towards poverty vary
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