This is the totality of all material resources, which workers, employees and other persons receive for work in a particular area as a result of their economic activity or as transfers.

The essence of the concept

In more in simple form we can say that income is the amount of money received in a certain unit of time for performing certain work. For example, 20 thousand/month. Sources of income can be:

1. Salary (time and piecework).
2. Other income of employees from enterprises other than wages: bonuses, rewards, etc.
3. Income from business activities.
4. Income from the disposal of private property.
5. Income from sales of the currency of another country at a higher rate than the currency was purchased.
6. Other miscellaneous income.

Transfers

In addition to economic activities, income may come in the form of transfers. Let's explain this part in more detail.

Transfers mean the giving of certain benefits by one person to another for free. Also transfero translated as “to move” or “to carry.” In this case, the transfer can be understood in a more general sense - a change in the location of funds in a certain form or only in their owner.

For example, the state pays pensions to older people - this is a transfer. In addition, such income includes:

1. Wealth. This category includes inherited acquisitions: money, real and movable property, documents, etc.
2. Fines.
3. Voluntary donations and contributions from individuals and legal entities.
4. Social payments: unemployment benefits, benefits for single mothers, disabled people, funeral benefits, child care benefits, etc.
5. Social protection of the population (compulsory social insurance).

Income level of the population

For every country, the level of income of the population is important. It can be used to determine the welfare of the country with the greatest accuracy. Unlike per capita income, economists receive more detailed and truthful information, since indicators of average nominal, disposable and real income are used to assess income levels:

1. Nominal - natural or cash income received by a citizen of a country for a certain time for a certain job.

2. Disposable is nominal income minus mandatory payments state or private enterprises. Income that can be used by a citizen to meet needs.

3. Real - a certain amount of material goods (goods and services) that a citizen can purchase with the amount of real income for a certain time.

The term “level of income of the population” is inviolably associated with the people’s well-being, the degree of satisfaction of the spiritual and material needs of citizens. And most importantly, it is connected with the standard of living of the population. Thus, for economists, population income indicators have the following meanings:

• Comparison is a comparison of the values ​​of individual indicators of citizens’ incomes in a time or geographic (between different territories, between countries) interval.
• Studying the impact of social change (for better or worse).
• Accounting for disparity in income between different segments of the population.

General form

Income is usually divided according to its type (form) and method of use. The population receives them in cash or in kind. Monetary form is wages, dividends, documents of value for sale (rights to own private property, movable property). The natural form is expressed in the households’ own production of objects necessary for life. For example, farmers grow carrots and potatoes (food) or flax and cotton in their gardens, which can be used to make clothes.

Income in kind is produced and used by consumers. For example: this type is typical for farms, private plots, individual small towns and villages in any country. We should not attribute natural gains only to countries with backward economies.

Cash income of the population is used by citizens to purchase ready-made material needs. This is a purchase necessary goods and services.

Real income

Real income of the population is a set of material goods, expressed in kind, that a consumer can purchase with his nominal income. Sometimes people confuse nominal and real income. Real earnings characterize the number of material goods purchased by a person, taking into account the variation retail prices, percentage of taxes, etc.

To determine the real income of the population with the greatest accuracy, it is necessary to subtract from the total amount of all earnings (cash + in kind) the mandatory costs of paying direct and indirect taxes and mandatory payments. This refers to fees, excise duty, VAT, overpayment for services, etc.

It is worth noting that the real income of the population is an indicator of the life of society in a given country. For example, capitalist relations are characterized by rapid uneven growth cash receipts and their sharp decline in certain periods. Such household incomes may decline for many reasons:

• Constant uncontrolled rise in prices for individual products and services.
• Inflation (increase in the general price level).

During the formation social society the overall level of real income is gradually increasing. However, it is worth remembering that revenues are distributed unevenly. In particular, in Russia, from 1940 to 1976, the income of farms and communities was much higher than that of workers in any factory. But compared to the beginning of the 20th century, the total real income of the same workers has increased by about 3.5 times. If we talk about the population as a whole, then almost 5 times.

Per capita income

According to entrepreneurs, income is the excess of amounts from sales over the amounts required for production costs. And production costs include not only the purchase of all necessary materials, but also wages to workers, employees and managers. Thus, the average annual income of an individual in a country is per capita income. It is calculated based on the sum of all material assets per year of persons of the same class.

Per capita income was coined as an economic term to indicate the wealth and economic status of a country. It can easily be used to determine the level of modernization and development of the country over any period of time.

Analysis of per capita income statistics in different countries the world allows us to say with confidence that the majority of the world's population lives in countries with average earnings that do not exceed $350.

However, per capita income gives too general a picture and does not consider individual details. For example, according to statistics, it is impossible to find out by average income purchasing power different segments of the population.

What if we consider underdeveloped countries? The average European spends most of his income on supporting his life. These are clothes, food, rent, etc. But in weak developed countries many people live on self-sufficiency (growing food, making clothes, building housing) and, therefore, spend a little differently on it. This means that these items will not be reflected in the national income of an underdeveloped state.

Finally, per capita income statistics for a country cannot provide reliable information about the state of a country if its income distribution is highly unequal. It's about the contrast between the poor and the rich.

Nominal income

The simplest type of income - nominal income - represents total amount all income of an individual or enterprise from some activity. The nominal incomes of different segments of the population are formed according to certain patterns:

• Income in the form of wages, wages, or property income.
• Cash transfers from the state are transfers.
• Income received through financial credit system: government insurance, bank loans, etc.

Going back a few years, to the early 90s, we can remember that at that time Russia had the lowest nominal income. According to average statistical data from Rosstat, monthly cash receipts did not exceed $22! Until about 1995, Russia held income conditions extreme poverty. But in 2006-2007, the Russian Federation again managed to return economic situation population to the same level as it was in 1990.

Income of the population

The country's economy is firmly based on the income of each individual citizen. This means that it is necessary to raise the standard of living to the maximum possible. On this moment The income of the Russian population is distributed as follows:

1. Payment is temporary and piecework - wages - 66.8%.
2. Payments by social insurance - 18,2 %.
3. Entrepreneurial income - 7.8%.
4. Property disposal - 5.3%.
5. Income of other types - 1.9%.

Incomes of the population of Europe and the CIS countries are distributed slightly differently. In the West there is much more people are engaged in entrepreneurial activities and receive less social insurance payments.

The highest level of income is observed in the countries of North America - Canada and the USA, as well as Australia. The average monthly income of residents of these states reaches $3,000.

The lowest level is in Central and Southern Africa. There is no reliable information about the income of many territories, and in other countries the average salary hardly reaches $100. However, it is worth remembering that agricultural production reigns on this continent, and it is not taken into account when calculating.

Increasing incomes of the population is the main task of the economy of any state. Each country, at a certain point in its existence, experienced severe economic crises, unrest in society due to a lack of resources, etc. But the rulers of all territories of the Earth, without exception, strive to improve the lives of the population and increase the average level of income.

How is the population's income distributed?

The primary distribution of income, also called functional in economics, begins with its distribution among the owners of factors of production. At different periods in different countries they acted and operate different systems formation of income distribution, but in general there are four main aspects:

1. Equalization assignment, or egalitarian distribution, is an attempt to equalize the incomes of all segments of the population. However, this aspect cannot be considered successful. Since the physical and mental abilities of individuals in one country vary greatly, egalitarianism will give rise to a situation where one works and the other eats.
2. Distribution by market method. A more equitable way of distributing income, based on the social benefit of the product produced and sold by the entrepreneur. So it is impossible to establish an absolute balance in income, but their distribution will be fair.
3. With the help of accumulated property. This distribution of income of the population manifests itself when receiving, accumulating and inheriting any part of the accumulated property: a house, securities, money, etc.
4. Privileged distribution, most developed in countries with backward democracies. The simplest type of distribution, where rich officials and rulers autocratically redistribute income in their favor: they arrange higher salaries, pensions and other benefits for themselves.

Many people, living quietly within their own country, do not notice how the economic system guides them. And it is very good that the average person does not notice how the state interferes in the market economy.

If the majority of people feel that income is distributed unfairly, that someone is in charge of them, and that the workers’ own efforts do not bear any fruit, this is fraught with discontent among the lower strata.

Population expenses

If citizens have income, the population's expenses also take place. In well-developed countries, any person's income should be greater than his expenses. Then the full and progressive existence of every individual in society is possible. At the moment in Russia, the majority of the population lives in this way. But this was not always the case.

In economics, there is such a thing as a decile coefficient, or stock coefficient, which characterizes the degree of stratification of society (the difference between the richest citizens and the poorest). When taking the total income of 10% of all the richest citizens of the country and the poorest for the ratios, this coefficient should not exceed 9-10 (according to UN recommendations).

In the early 90s, after the collapse of the USSR, the decile coefficient was officially equal to 16, but in fact its threshold reached a value of 28-32. This means that the incomes of the poor in Russia were lower living wage more than 3 times.

This difference between the earnings of the rich and the poor allows us to understand that it is not at all in the distant past that the economy Russian Federation was experiencing a real collapse and had to rise from the ruins.

Low incomes of the population threaten the country's economy with a deficit state budget. If the nominal income of an individual is less than the sum of the cost of necessary material goods, then what can we say about the payment of direct and indirect taxes and the level of development of the state?

The main reason for low government revenues is the one-sidedness of demand. When only the goods of one product are in demand on the market, and other manufacturers stock a product that is unsuitable for the masses, a two-sided situation arises. If you look at it from one angle, the income of the sought-after producer will go up, but, on the other hand, this same reason is considered the main prerequisite for monopolies, due to which a strong contrast arises between the rich part of the population and the poor. This cannot be allowed under any circumstances, therefore the state monitors supply and demand on the market especially carefully.

Thus, one of the main tasks of the Ministries of Finance in Russia and their analogues in other countries is to increase the cost of living, the average wage and reduce the decile coefficient as much as possible.

Even if now it is not possible to fulfill all the aspirations of economists and ideologists in practice, or even to draw up a project for their implementation among the masses. But if we compare the current standard of living and the one in which people were forced to exist in the middle of the 20th century or even earlier, at the end of the 19th, then we can confidently say that the economies of the leading countries of the world are progressing at incredible speed. For example, after the collapse of the USSR, it took Russia about 10 years to return to its previous standard of living. Since then, our state has been progressing economically.

Don't be confused different types income of individuals, but you definitely need to know that each person is able to contribute to the development of the country’s economy and help it rise to the top of the global economic industry.

Let's define what income is and what types of income there are.

Income of the population- this is the amount Money and material goods received or produced by households over a certain period of time. The level of consumption of the population directly depends on the level of income.

Income of the population can be divided into monetary And natural.

Cash income- this is income that includes all receipts of money into the family budget in the form of wages of workers, income from entrepreneurial activity, pensions, scholarships, various benefits, income from property (interest on deposits, rent, dividends on securities, real estate income), royalties, etc.

Income in kind is income that includes products produced by households for their own consumption.

Income can also be classified as:

• aggregate, representing the total amount of cash and in-kind income from all sources of income;
• nominal, characterizing the level cash income regardless of taxation and price changes;
• disposable, nominal income minus taxes and other obligatory payments, i.e., funds used by the population for consumption and savings;
• real, characterizing nominal incomes taking into account inflationary increases in prices and tariffs;
• real disposable cash income, which is determined based on cash income of the current period minus mandatory payments and taxes adjusted for the index consumer prices.

The main income of workers is wages, amounting to up to 70% of workers' income. Distinguish nominal And real wages.

Nominal wages- these are the funds that an employee receives (or which are accrued to him) in monetary terms for his work for a certain period of time. Nominal wages are fixed at employment contract(contract) concluded between the employee and the employer.

Real wage reflects the purchasing power of cash received and represents nominal wages adjusted to the consumer price index. If the rate of increase in nominal wages is lower than the rate of increase in the level of prices for goods and services, then real wages decrease. Therefore, when increasing nominal wages, it is necessary to take into account the rise in prices, otherwise the increase in wages will not have a stimulating function.

Income distribution occurs between the owners economic factors production - labor, land, capital, entrepreneurial abilities. However, if hired workers participate in the profits of the enterprise, then they also receive part of the factor income.

In addition to wages, cash income of the population includes income from business activities (profit), income from property (interest, dividends, rent), social transfers (pensions, benefits, scholarships) and other income ( insurance compensation, winnings, income received by inheritance, etc.).

The income structure of the population of the Russian Federation under a planned economy differs significantly from the income structure under market conditions management. A positive manifestation of a market economy is the growth of income from property and income from business activities, although they are received by a smaller part of the population. During the period of the planned economy of the USSR there was high percent income from wages and social payments population, which indicated high social protection of workers, but income from property and business activities was extremely small, since within current legislation Almost all such activities were considered illegal.

The ratio of the share of wages and social transfers in the structure of cash income of the population plays an important role in motivating the work of workers. If wages or income from business activities predominate in the structure of cash income, this indicates an increase in entrepreneurial initiative and economic independence. The trend towards an increase in social transfers in the structure of cash income can lead to a psychology of social dependency among part of the working population.

Differences in per capita income are called income differentiation. Income inequality is common to all economic system. However, as the level of socio-economic development of the country increases, income differentiation indicators decrease.

IN modern Russia The income differentiation of the population is significantly higher than in economically advanced countries and tends to further increase. This is largely due to the fact that many enterprises that were previously city-forming and often the only sources of income for many citizens turned out to be uncompetitive and closed. At the same time, a social stratum arose that lives and acts according to the laws of the market, “fits into market relations” and has immeasurably higher incomes. But as ever wider sections of the population are involved in market relations, as well as the expansion state support socially vulnerable segments of the population, the size of inequality should be reduced.

The degree of income inequality is reflected by the Lorenz curve (see figure). The x-axis shows the percentage of households, and the y-axis shows the percentage of income received. total income. The Lorenz curve represents the cumulative distribution of population and the corresponding income.

Lorenz curve: OCA - complete equality; ODA - after taxes; OEA - before taxes

An absolutely uniform distribution of income (complete equality) is represented in the figure by a single OCA line, which indicates that any percentage of family households receives the corresponding percentage of income. The area between the absolute equality line and the ODA Lorenz curve reflects the degree of income inequality. The wider the area, the greater the degree of income inequality.

To overcome social inequality, most countries in the world use proportional progressive income taxation. In Russia, until 2001, proportional-progressive income tax. Since 2001 income tax individuals(NDFL) is charged at a flat rate of 13%. On the one hand, this, of course, is not bad, since the majority of the country’s population is still close to the poverty line, but on the other, the abolition of the proportional progressive tax contradicts the democratic principle, which states: “Whoever earns more pays more.”

Progressive taxes reduce social inequality in society. This principle of justice, formulated by A. Smith, is clearly demonstrated by the depicted Lorenz curve. The figure above shows that proportionally progressive taxes make the distribution of income more equal.

In world practice, the following coefficients are used to quantify the level of income inequality:

• funds ratio- the ratio between the average income values ​​of the compared groups or their shares in total income;
• decile coefficient- the ratio between the average incomes of the 10% most affluent and the average incomes of the 10% least affluent citizens;
• population income concentration index, or Gini coefficient, varying from 0 to 1; The closer this coefficient is to one, the greater the inequality in society.

Course work

in the discipline "Statistics"

« Statistical study of population income"

Introduction………………………………………………………………………………..3

Theoretical part……………………………………………………….. 5

1. The concept of the standard of living of the population…………………………………...5

2. Population income statistics…………………………………………….5

2.1. Types and sources of income of the population……………………………… 5

2.2. Income indicators and indicator

living wage……………………………………………………………..6

2.3. Methods for studying the dynamics of real income

population………………………………………………………………………………… 10

2.4. Methods for studying income differentiation and

poverty level………………………………………………………………………………11

Calculation part………………………………………………………………………………17

Analytical part………………………………………………………...33

Conclusion………………………………………………………………………………….. 37

List of references……………………………………………………….39

Introduction

The processes of formation and use of income of the population represent the receipt at its disposal of resources in cash and in kind, obtained through labor activity, the use of property in the form of transfers and their direction to satisfy personal needs, production goals and accumulation.

In countries with transition economy income research is extremely relevant. This is due to the fact that in the conditions of socio-economic transformations affecting all aspects of society, objective information is especially required about the living conditions of the population, effective consumer demand, the degree of social stratification and the level of poverty, cost social programs.

For countries with a large territory and a federal structure, it is essential to develop measures economic policy, have statistical estimates of the purchasing power of income of the population of the territories.

Population income statistics are of great importance, first of all, for analyzing living standards, developing adequate social and tax policy. However, its significance is not limited to this, since it provides information for studying the influence of household income on other macroeconomic processes, for example, for studying the factors that determine the savings rate and influence investment activity in economics. Thus, income statistics data are necessary for authorities government controlled decision-makers on a wide range of economic policy issues, as well as for academics engaged in research in this area.

In the statistical methodology section of this course work, a number of issues related to the analysis of inequality in the distribution of income between individual groups of the population will be addressed and the indicators necessary to assess the differentiation of the population by standard of living will be considered.

In the calculation part of the work, we will calculate the average per capita income for the households under study, variation indicators, structural characteristics of distribution series; according to available data on the distribution of total cash income population of the region we will determine the A. Gini income concentration index and construct Lorenz curves; we will determine the analytical and average indicators of a series of dynamics, construct a graph of the dynamics of the average per capita income of the population; Based on data on the dynamics of income of the region's population, we will calculate nominal and disposable cash income, as well as indices of the purchasing power of the ruble, real disposable income and the real wage index.

In the analytical part of the work, we will conduct an automated statistical analysis of the dynamics of the average per capita income of the Russian population per month over 5 years using a package of application programs for processing MS Excel spreadsheets in the Windows environment.

Theoretical part

1. The concept of living standards of the population

Studying the standard of living of the population is one of the most important tasks of socio-economic statistics. The definition of the standard of living category is still a subject of debate among economists and statisticians. The standard of living should characterize the degree to which the various needs of the population are satisfied not only in material goods, but also in intangible services. Therefore, the standard of living can be defined as a complex socio-economic category, reflecting the degree to which the population’s needs for material goods and intangible services are met, as well as the conditions available in society for the development and satisfaction of these needs.

2. Population income statistics

2.1. Types and sources of income of the population

The central place in the system of indicators of living standards is occupied by indicators of population income. Income is understood as the amount of money and other benefits received as a result of the distribution of the product produced in society among the owners of factors of production. There are the following main types of income of the population:

· income from occupations (wages);

· income from personal subsidiary plots;

· pensions, benefits, scholarships, subsidies for trips to sanatoriums, rest homes, dispensaries, children's health camps, for the maintenance of children in preschool institutions;

· income from other sources, in particular from property and business activities.

Income of the population has both monetary and natural forms. The vast majority of income goes to the population in the form of money. Income in kind is income from personal subsidiary plots, farmers' income, part of the wage fund, and most of charitable assistance.

When studying the income of the population, its grouping by sources of livelihood and income is of great importance. This grouping covers the entire population, regardless of age. The following main sources of income are identified:

· wages and other payments that employees receive for their work (in cash and in kind) - for example, bonuses, commissions, vacation pay, various allowances, etc.;

· income from individual entrepreneurial activity;

· payments and benefits from public consumption funds (transfers - pensions, scholarships, benefits, etc.), special funds, annual life insurance payments;

income from property (for example, payments for the use of financial assets, buildings, land, copyrights, patents, etc.);

· income from personal farming, gardening, orchard (cost of net production).

Other sources of income are also possible (winning a lottery, a prize for winning a competition, competition, etc.).

2.2. Income indicators and the cost of living

To measure the level and structure of income of the population, a number of indicators are used that characterize them in various aspects.

One of the income indicators is the volume personal income of the population (PDI)– all types of income of the population received in cash or in kind.

Aggregate (total) income of the population (ACI) are determined by summing up personal income and the cost of free and preferential services provided to the population at the expense of social funds.

The total cash income of the Russian population in 2005 amounted to 13,667.8 billion rubles. and over the year increased in nominal terms by 1.25 times. Data reflecting changes in their structure for the period from 2000 to 2005. are given in table 1.

Table 1

Structure of monetary income of the Russian population

(in % of total)

Cash income, total
including:
salary
social transfers
property income
business income
other income

Source: Russian statistical yearbook.-M., 2006 – P.173

Analysis of the table data shows an increase in the share of social transfers in cash income from 2000 to 2002, and then its decrease. At the same time, there is an increase in income from property while a simultaneous decrease in income from business activities.

These indicators, calculated in prices of the current period, are called nominal income indicators. They do not determine the real content of income, that is, they do not show how much material goods and services are available to the population at the current level of income.

Subtracting taxes, mandatory payments and contributions to public organizations(NP), find personal disposable income (PDI) of the population - that part of personal income that their owners allocate for consumption and savings:

LRD = LDN – NP

The share of this part in the total volume will be:

To estimate changes over time in the purchasing power of income in aggregate form, we use real income indicators population. Real total income (RTI) of the population are defined as personal disposable income with the addition of the value of free or provided preferential terms services to the population from government and non-government sources, adjusted for changes in consumer prices. Real disposable income (RDI) of the population – personal disposable income adjusted for changes in consumer prices. It reflects the maximum cost of goods and services that the population could purchase with their current income, based on base period prices, without resorting to the use of their accumulated financial and non-financial assets and without increasing their financial liabilities.

Average per capita cash income population is calculated by dividing the total amount of monetary income for the year by the average annual population.

Average per capita nominal cash income of the population of Russia per month, thousand rubles:

Source: Russian statistical yearbook.-M., 2006.-P.171

Practical calculations of nominal and disposable monetary income will be presented in the calculation part of the course work (Task 4, p. 28).

At statistical study level and boundaries of poverty, first of all, an income limit is established that ensures consumption at the minimum acceptable level, that is, the cost value of the subsistence level is determined, with which the actual incomes of individual segments of the population are compared. Living wage represents a cost estimate of the minimum set of food products necessary to preserve human health and maintain his life, as well as costs for non-food goods and services, taxes and mandatory payments, based on the share of costs for these purposes in the budgets of low-income groups of the population; used as a criterion of poverty when characterizing the processes of socio-economic differentiation.

Currently, along with the general subsistence minimum, it is determined physiological minimum, which represents the total cost of goods and services, which can be considered as a lower limit that allows you to maintain physical condition, but only for a certain time. The vital level of consumption includes only expenses for food, the most necessary sanitation and hygiene items, medicines, public utilities and other obligatory payments. As an indicator of changes in the cost of vital food products per person per month, 19 essential food products are selected, the daily energy value of which is 2236.7 kcal. If the population does not have enough income to meet minimum needs, this means that the country lives below the poverty line.

Information on the dynamics of the cost of living in Russia, the number and share of the population with lower incomes is given in Table 2.

table 2

Dynamics of the cost of living in Russia

Source: Russian Statistical Yearbook. –M., 2006. – P.171

In 2004, the income deficit in Russia amounted to 225.6 billion rubles. or 2.1% in relation to total cash income; 25.2 million people or 17.6% of the total population lived below the poverty line. The composition of this group is far from homogeneous, while part of the population (according to an estimate of at least 5%) has incomes below the physiological minimum (among them are the poor, who, according to the methodology of the International Labor Organization (ILO), include persons whose total income is 2 times lower than the subsistence level minimum).

2.3. Methods for studying the dynamics of real income of the population

Not every growth rate of cash income in the presence of inflation in the economy can indicate an improvement in the standard of living of the population.

In order to eliminate the factor of price changes leading to changes in the purchasing power of money, nominal and disposable monetary incomes of the population are calculated in real terms, adjusted for consumer price indices (consolidated and sub-indices for individual product groups).

Calculation of indicators in real terms is carried out by dividing the corresponding indicators of the current period by the consumer price index (CPI ruble), or multiplying by the purchasing power index of money (PPI).

Real disposable income (RDI) population are calculated using the formula:

RRD = (LDN – NP) I,

where I= = - index of purchasing power of money

Calculate similarly real total income (RTI) of the population - as total income (ATI) adjusted for the purchasing power of money:

ROD = SDN I= .

To characterize the dynamics of these indicators, corresponding indices are constructed, for example, real disposable income index :

I = = = I I I

Consequently, the rate of change in real disposable income depends on three factors: the growth rate of nominal income, changes in interest rates tax payments and changes in the purchasing power of money.

The change in real disposable cash income of the population of Russia is characterized by the following I:

Dynamics of real cash income of the population of Russia

(in % of the previous year)

Source: Russian Statistical Yearbook. – M., 2006. – P.36

So, in 2000 there was an increase in real incomes, then in 2001 there was a decrease, in 2002-2003. growth again, and in 2004-2005 decline again.

Practical calculations of indices of the purchasing power of the ruble and real disposable income will be presented in the calculation part of the course work (Task 4, p. 29).

2.4. Methods for studying income differentiation and poverty levels

The basis for measuring the economic differentiation of the population is the analysis of inequality in the distribution of income between individual groups of the population. To assess the differentiation of the population by standard of living, the following indicators are used:

· distribution of the population by level of average per capita income;

· income differentiation coefficients;

· distribution of the total amount of cash income among various population groups;

· income concentration ratio (Gini index);

· population with incomes below the poverty line, poverty rate.

Average income is defined as follows:

X - the middle of the i-th interval of population distribution by income;

Frequency of the i-th interval.

To study the characteristics of population differentiation by income level, the structural characteristics of distribution series are used: mode, median, quartiles, deciles and others.

Modal value of income (Mo) calculated by the formula:

M= x+ i , Where

X- lower limit of the modal interval;

i

Median income (Me) is the level of income that divides the income distribution series into two equal parts: half of the population has a per capita income not exceeding median value income, the other half - income not less than the median. The calculation of this indicator is determined by the formula:

M= x+ i , Where

X- lower limit of the median interval; i S- accumulated frequency of the interval preceding the median; - frequency of the median interval.

The structural characteristics of the population's income can be given by the following estimates:

· distribution quartiles – divide the entire population into 4 equal parts;

· distribution quintiles – divide the population into 5 equal groups;

Deciles – divide the population into 10 equal parts.

The degree of differentiation of the population in terms of average per capita income is assessed using income differentiation coefficients. There are two indicators of differentiation:

· stock differentiation coefficient ( TO f ) – this is the ratio between the average incomes of the compared population groups (usually these are the average incomes obtained from the 10% of the population with the highest and lowest incomes):

· decile coefficient of income differentiation ( TO d ) , which shows how many times the minimum income among the richest 10% of the population exceeds maximum income among the bottom 10% of the population; it is calculated by comparing the ninth and first deciles:

Practical calculations of average income, mode, median, first and ninth deciles, as well as the decile coefficient of income differentiation will be presented in the calculation part of the course work (Task 1, p. 18).

A tool for analyzing the concentration of income of the population is Lorenz curve and calculated on its basis income concentration index (Gini coefficient) .

Lorenz curve establishes a correspondence between the population size and the amount of total income received. To construct it, the population is divided into groups that are equal in size and differ in the level of average per capita income. Groups are ranked by average per capita income. For each group, frequencies are determined - shares in total number population (, where is the population of the group; is the total population) and in the total amount of income (, where is the average income in the group), and on their basis - the accumulated frequencies. With an even distribution of income, 1/10 of the population with the lowest incomes will have 10% of the total income, 1/20 of the population will have 20% of the total income, etc. In Figure 1, the uniform distribution of income is represented by a straight line connecting the origin of coordinates A and point C.

The line corresponding to the actual distribution of income deviates from the line of uniform distribution the more, the greater the inequality in income distribution.

Total income

(accumulated frequencies)

Income concentration ratio (Gini coefficient) allows you to analyze the degree of concentration of income among different groups of the population and quantify the unevenness of their distribution.

The Gini coefficient is determined by the formula:

The share of the population belonging to (a) group in the total population;

Share of income concentrated in i– th population group;

n- number social groups;

cum y- cumulative (calculated on an accrual basis) share of income.

The Gini coefficient varies from 0 to 1. With uniform distribution, it tends to zero, and the higher the polarization of income in society, the closer it is to one.

The practical calculation of the A. Gini income concentration index, as well as the construction of the Lorenz curve, will be presented in the calculation part of the course work (Task 2, p. 23).

Based on data on the income of the poor population, the following indicators are calculated: average per capita income of the poor population, income deficit, poverty coefficient, poverty depth index, poverty severity index.

Income deficit is assessed as the total income of the poor, which falls short of the subsistence level.

General form formulas for measuring poverty were proposed by Foster, Grier and Thorbecke. The formula looks like this:

, Where

P - indicator (measure) of poverty;

A– parameter showing the type of poverty indicator;

Z is the poverty line for the jth household, defined as the average subsistence level of a household per capita, calculated taking into account the gender and age composition of the household;

Y is the average per capita income of the jth household with an income level below the subsistence level;

q – number of poor households;

N – total number of households;

j is the number of each household.

Using this formula, three poverty indicators can be determined:

1. Poverty rate ( R O ) , or the share of poor households in their total number:

;

2. Poverty depth index ( R 1 ) :

;

3. Poverty severity index ( R 2 ) :

.

Calculation part

Exercise 1

Based on the materials of a 1% mechanical sample of households in the region, the following data were obtained on the distribution of households by average per capita income:

Table 1

Based on the survey data, determine:

1. Structure of households by average per capita income.

2. Average per capita household income.

3. Variation indicators: dispersion, standard deviation, coefficient of variation. Assess the quality (homogeneity) of the population.

4. Mode, median, first and ninth deciles.

5. Calculate the decile coefficient of income differentiation.

6. With probability 0.954:

a) possible limits of per capita income of households in the region;

b) possible limits on the share of households with an income of less than 2,000 rubles.

Draw conclusions.

Solution.

1. Determine the structure of households by average per capita income by dividing the number of households in each group by the total number of households in the sample and multiplying by 100%. We put the results in the table:

table 2

Structure of households by average per capita income

The table shows that a large proportion of households in the sample are households with average per capita cash incomes from 1000 to 2000 rubles. per month - almost 60%.

2.3. Let us determine the average per capita income of households in the sample and the variation indicators:

Let's create a calculation table:

Table 3

Calculated values ​​needed to calculate the mean and variance

Average per capita cash income per month,	Number of households	Middle interval,				(X-Xsr)^2* f
Up to 1000		500
1000-2000		1500
2000-3000		2500
3000-4000		3500
over 4000		4500
Total:		-				1506840000

rub.,

those. The average per capita income in the sample was 1885 rubles.

The variance of a trait is the average square of deviations of the options from their average size, in our case, the weighted variance for the variation series is equal to:

The standard deviation is equal to the square root of the variance: rub.

Let's determine the coefficient of variation, %:

The coefficient of variation is used as a characteristic of the homogeneity of the population. The population is considered quantitatively homogeneous if the coefficient of variation does not exceed 33%. In our case, V51.5%, therefore, this set of households is quantitatively heterogeneous.

4. Determine the mode, median, first and ninth deciles using the formulas for the interval series:

M= x+ i , Where

X- the lower limit of the modal interval (the interval with the highest frequency is called modal);

i– the value of the modal interval;

Modal interval frequency;

Frequency of the interval preceding the modal;

Frequency of the interval following the modal.

The interval with the boundaries of the average per capita income of 1000-2000 rubles in this distribution is modal, since it has the highest frequency. Then the mode is equal to:

Median M:

M= x+ i , Where

X- the lower limit of the median interval (the median is the first interval whose accumulated frequency exceeds half of the total sum of frequencies);

i– the value of the median interval;

S- accumulated frequency of the interval preceding the median;

Median interval frequency.

The median is the interval with boundaries of 1000-2000 rubles:

rub.

To calculate the first and ninth deciles in an interval variation series, formulas are used to calculate the median, only in this case, instead of the median interval, intervals are used in which there are options that cut off 10% of the number of frequencies at different ends of the distribution series.

To calculate the first and ninth deciles, we use the formulas:

,

,

where is the lower limit of the interval containing the first decile (the interval is determined by the accumulated frequency that first exceeds 10%);

The lower limit of the interval containing the ninth decile (the interval is determined by the accumulated frequency that first exceeds 90%);

The value of the decile interval;

Cumulative frequency of the interval preceding the interval containing the first decile;

The same for the ninth decile;

Frequency of the interval containing the first decile;

The same for the ninth decile.

Let's calculate the first and ninth deciles.

The first decile is in the range of 0-1000 rubles, the accumulated frequency of which is equal to 184 people, and the ninth decile is in the range of 3000-4000 rubles, the accumulated frequency of which is equal to 1520 households. From here the most low income are equal:

rub.

The highest incomes are:

rub.

5. Calculate the decile coefficient of differentiation of income of the population using the formula:

times.

The decile coefficient of differentiation of income of the population shows that the average per capita monetary income, above which 10% of the population had income (high-income group), in the analyzed period exceeded by 3.9 times the income level below which 10% of the population (low-income group) had income.

6. a) Let us determine with probability 0.954 the limits of the average per capita income of households in the region:

When calculating the sampling error for average per capita income, we use the formula:

;

Or 1% according to the condition; - general average; - sample average; - sample variance of the same characteristic.

Therefore, let’s substitute the previously obtained values ​​into the formula:

; ;

Maximum sampling error for the average during mechanical selection:

The normalized deviation (“confidence coefficient”) depends on the probability with which the maximum sampling error is guaranteed (P = 0.954).

According to the table, Р=Ф(t)=0.954, therefore t=2.

At t=2, with a probability of 0.954, it can be argued that the difference between the sample and general indicators will not go beyond the limits.

The marginal sampling error allows us to determine the limiting values ​​of the characteristics of the general population and their confidence intervals for the average:

;

;

The sample average is equal to 1885 rubles. Let's calculate the boundaries:

With a probability of 0.954, it can be argued that the average per capita income of households will range from 1836.8 to 1933.2 rubles.

b) Let us determine possible limits for the share of households with an income of less than 2000 rubles.

The specific gravity or sample fraction (w) is calculated using the formula:

The maximum sampling error for a share is determined using the non-repetitive sampling formula:

Substituting the obtained values ​​into the formula, we get:

The general share (p) is calculated using the formula:

We calculate the boundaries within which the general share will be based on double inequality:

;

Substituting the values, we get:

, or

Thus, with a probability of 0.954 it can be stated that the share of households with an income of less than 2000 rubles will range from 66.5% to 71.1%.

Task 2

There is data on the distribution of the total cash income of the population of the region,%:

Table 4

For the base and reporting year:

a) determine A. Gini income concentration indices;

b) construct Lorentz curves.

Draw conclusions.

Solution.

a) To find income concentration indices, we use the formula:

Let's create a calculation table to find the corresponding amounts:

Table 5

	Social population	population,	Share in total The volume of cash income,	Estimated indicators
Basic
Reporting
				The Lorenz curve illustrates the increasing unevenness in the distribution of total monetary income in reporting year compared to the baseline. Thus, the most affluent group of the population concentrated 47% of income in the reporting year versus 42% in the base year, and the share of the least affluent group in total income increased from 5.8% to 6.2%. Task 3 In the region, average monthly cash income per capita in the first half of the reporting year is characterized by the following data: Table 6 Based on the dynamics series data, determine: 1. Chain and basic: a) absolute increases; b) growth and gain rates; 2. Absolute content of 1% increase. Present the results in the table. 3. Average indicators of the dynamics series: A) average level row; b) average monthly absolute growth; c) average monthly rate of growth and gain. Plot a graph of the dynamics of the average per capita income of the population. Give an analysis of the indicators and draw conclusions. Solution. 1.2. Let's calculate chain and basic indicators a series of dynamics of average monthly income per capita by month, as well as the absolute content of 1% growth. Accepted designations: Indicator for the considered (th) time interval; Indicator for the previous (th) time interval; Indicator for the base time interval. chain, rub.	Absolute increase in base, rub.		basic,			growth, rub.

3. Let us calculate the average annual indicators of the dynamics series using the following formulas:

a) Let’s determine the average level of the series using the arithmetic mean:

b) Average absolute increase in cash income

rub.

c) Average growth rate

or 105.4%

average rate of increase

Let's build a graph of the dynamics of the average per capita income of the population.

Fig.2. Dynamics of average monthly income of the population

Analyzing the obtained indicators, we can say that in the first half of the year there was a gradual increase in the average per capita income of the population, i.e. in this series of dynamics there is a positive development trend, as evidenced by average tempo growth equal to 5.4% (or average absolute increase of 24 rubles) per month, as well as positive chain growth rates and gains.

Task 4

The following data are available on the dynamics of income of the region's population, million rubles.

Table 8

Consumer prices in the reporting year increased by 16% compared to the base year.

Define:

1. For each year:

a) nominal cash income;

b) the structure of nominal monetary incomes;

c) disposable cash income.

Present the calculation results in the table.

Draw conclusions.

Solution.

1. a) Let us define the nominal income of the population as the sum of all monetary incomes for each year:

for the base year we have: 374 million rubles. (see table)

for the reporting year we have: 503 million rubles. (see table).

The absolute increase in nominal cash income in the reporting year compared to the base year amounted to 129 million rubles. (503-374).

b) Let us determine the structure of nominal monetary incomes of the population:

Table 9

Structure of monetary income of the population

c) We will find the disposable cash income of the population for each year as the difference between nominal personal income (NDI) and payment of mandatory payments and contributions:

LRD=LDN-NP

for the base year we have: LRD=374-29=345 million rubles.

for the reporting year we have: LRD=503-45=458 million rubles.

The absolute increase in disposable cash income of the population in the reporting year compared to the base year amounted to 113 million rubles.

2. Let us determine the purchasing power index of the ruble for each year using the formula:

However, first you need to find the nominal wage index using the formula:

or 130.9%.

Then the real wage index is equal to:

or 112.8%.

This means that in the reporting year, nominal wages increased by 30.9%, but real wages increased by only 12.8% compared to the base year.

Analytical part

1. Statement of the problem

The study of the average per capita income of the population is very relevant. The distribution of the population by average per capita income is the main characteristic of the differentiation of the population by level of material well-being. In addition, this indicator characterizes not only economic role population and the degree of dependence of the economy on its behavior, but also the ability of the population to satisfy their needs, the cost of social programs, that is, at the same time it is one of the important indicators of the standard of living.

The purpose of the analytical part of the work is to study and compare the average per capita cash income of the population per month for 2000 - 2004.

Based on data on the average per capita income of the population of Russia per month for 5 years, presented in Table 1, we will identify a general trend in changes in monetary income, freed from the influence of factors such as inflation. To do this, we calculate the following indicators:

absolute increase

· growth rate,

· growth rate,

absolute value of 1% increase,

· average level of the series for the period, absolute growth, growth and growth rates.

Table 1

Average per capita cash income of the Russian population per month

10.1 Population income and its types

In conditions market system income for business entities is not guaranteed and is distributed unevenly among different segments of the population. Income inequality is one of the main causes of social instability in society. In order to mitigate inequality and prevent social conflicts, the state pursues a social policy, the most important direction of which is the redistribution of income between separate categories population.

Let's define what income is and what types of income there are.

Personal income is the amount of money and material goods received or produced by households over a certain period of time. The level of consumption of the population directly depends on the level of income.

Income of the population can be divided into monetary and natural. Cash income is income that includes all receipts of money into the family budget in the form of wages of workers, income from business activities, pensions, scholarships, various benefits, income from property (interest on deposits, rent, dividends on securities, income from real estate), fees, etc.

Income in kind is income that includes products produced by households for their own consumption.

Income can also be classified as:

Aggregate, representing the total amount of cash and in-kind income from all sources of income;

Nominal, characterizing the level of cash income regardless of taxation and price changes;

Disposable, nominal income minus taxes and other mandatory payments, i.e. funds used by the population for consumption and savings;

Real, characterizing nominal incomes taking into account inflationary increases in prices and tariffs;

Real disposable cash income, which is determined based on cash income of the current period minus mandatory payments and taxes, adjusted for the consumer price index.

The main income of workers is wages, amounting to up to 70% of workers' income. There are nominal and real wages.

Nominal wages are those funds that an employee receives (or which are accrued to him) in monetary terms for his work for a certain period of time. Nominal wages are fixed in the employment agreement (contract) concluded between the employee and the employer.

Real wages reflect the purchasing power of money received and are nominal wages adjusted for the consumer price index. If the rate of increase in nominal wages is lower than the rate of increase in the level of prices for goods and services, then real wages decrease. Therefore, when increasing nominal wages, it is necessary to take into account the rise in prices, otherwise the increase in wages will not have a stimulating function.

The distribution of income occurs between the owners of economic factors of production - labor, land, capital, entrepreneurial abilities. However, if hired workers participate in the profits of the enterprise, then they also receive part of the factor income.

In addition to wages, cash income of the population includes income from business activities (profit), income from property (interest, dividends, rent), social transfers (pensions, benefits, scholarships) and other income (insurance compensation, winnings, income received in order of inheritance, etc.). In a market economy in Russia in connection with the development of entrepreneurship and various forms property, the structure of monetary income of the population has changed significantly compared to the planned economy of the USSR (Table 10.1).

Table 10.1

* Since 1995 - including hidden (not officially recorded) wages
Source: www.gks.ru/free_doc/2006/606_13/06-07.htm

The table above shows that the structure of wage income in Russia has been declining since 1995, while social payments (transfers) remain at approximately the same level, which indicates weak social protection of employees and low-income segments of the population. A positive manifestation of a market economy is the growth of income from property and income from business activities, although they are received by a smaller part of the population. During the period of the planned economy of the USSR, there was a high percentage of income from wages and social payments to the population, which indicated high social protection of workers, but income from property and business activities was extremely small, since under the current legislation almost all types of such activities were considered illegal.

The ratio of the share of wages and social transfers in the structure of cash income of the population plays an important role in motivating the work of workers. If wages or income from business activities predominate in the structure of cash income, this indicates an increase in entrepreneurial initiative and economic independence. The trend towards an increase in social transfers in the structure of cash income can lead to a psychology of social dependency among part of the working population.

Differences in per capita income levels are called income differentiation. Income inequality is characteristic of any economic system. However, as the level of socio-economic development of the country increases, income differentiation indicators decrease. In modern Russia, the differentiation of incomes of the population is significantly higher than in economically advanced countries, and tends to further increase. This is largely due to the fact that many enterprises that were previously city-forming and often the only sources of income for many citizens turned out to be uncompetitive and closed. At the same time, a social stratum arose that lives and acts according to the laws of the market, “fits into market relations” and has immeasurably higher incomes. But as more and more sections of the population are involved in market relations, as well as the expansion of state support for socially vulnerable sections of the population, the extent of inequality should decrease.

The degree of income inequality is reflected by the Lorenz curve (Figure 10.1). The x-axis represents the percentage of households, and the y-axis represents the percentage of total income received. The Lorenz curve represents the cumulative distribution of population and the corresponding income.

Rice. 10.1. Lorenz curve:
OSA - complete equality; ODA - after taxes; OEA - before taxes

An absolutely uniform distribution of income (complete equality) is shown in Fig. 10.1 by the OCA line, which indicates that any percentage of family households receives the corresponding percentage of income. The area between the absolute equality line and the ODA Lorenz curve reflects the degree of income inequality. The wider the area, the greater the degree of income inequality.

To overcome social inequality, most countries in the world use proportional progressive income taxation. In Russia, until 2001, a proportional progressive income tax was also in force. Since 2001, personal income tax (NDFL) has been levied at a flat rate of 13%. On the one hand, this, of course, is not bad, since the majority of the country’s population is still close to the poverty line, but on the other, the abolition of the proportional progressive tax contradicts the democratic principle, which states: “Whoever earns more pays more.” Progressive taxes reduce social inequality in society. This principle of justice, formulated by A. Smith, is clearly demonstrated by the depicted Lorenz curve. Figure 10.1 shows that proportionally progressive taxes make the distribution of income more equal.

In world practice, the following coefficients are used to quantify the level of income inequality:

Funds ratio - the ratio between the average income values ​​of the compared groups or their shares in total income;

Decile coefficient - the ratio between the average incomes of the 10% most affluent and the average incomes of the 10% least affluent citizens;

The population income concentration index, or Gini coefficient, varying from 0 to 1; The closer this coefficient is to one, the greater the inequality in society.

(Materials are based on: E.A. Maryganova, S.A. Shapiro. Macroeconomics. Express course: tutorial. – M.: KNORUS, 2010. ISBN 978-5-406-00716-7)

Surely you have noticed that in different years, with a certain amount of money, you can afford to purchase different quantities goods and services. For example, in 2010 you could buy 5 kg of meat for 1,000 rubles, but in 2017 the money you pay is much less, although the amount of money has not changed. All professional economists are well aware of this paradox. And that is why they distinguish between real and nominal income. Below we will find out what types of income there are, and also find out what the dynamics of real income of the Russian population is.

Types of income

Income means the total cash payments, goods and services that a person receives over a certain period of time (for billing period most often one year is taken). Income has the following structure:

• Cash income. The sources of cash receipts do not matter - it can be wages, various government benefits and payments, rent, increase in savings in the bank, income from the sale of products Agriculture, cash gifts and so on.
• Income in kind. Income in kind refers to the totality of goods that a person receives directly and does not buy with money. These can be agricultural products (vegetables, fruits and other products that a person himself or collectively produced as a result of his labor), various gifts, material aid and so on.
• Indirect income. Indirect income refers to income that a person receives for free using various social infrastructure institutions. This could be treatment in a hospital, getting an education, raising a child in kindergarten, and so on.

Economists distinguish between nominal and real income.

Nominal income means the totality of cash receipts for a certain period. It is also important to remember that nominal income is calculated without taking into account taxes.

Why then is the term “real income” introduced? And how does real income differ from nominal income?

The fact is that at different periods of time a person can receive the same nominal income, but with this income he can afford different amounts of goods and services. In simple words, real income of the population is the totality of cash receipts, taking into account certain factors that affect the amount of goods and services that can be purchased with this income.

The level of real income is influenced by the following factors:

1. Price index. Due to inflation, money depreciates every year, which leads to a decrease in the number of goods and services that a person can buy for a fixed amount of money.
2. Tax level. Every month, the majority of Russian citizens make tax contributions to the regional and federal budget, however, the tax rate may vary. Therefore, due to an increase or decrease in taxes, the amount of money that a person actually receives in hand after paying all payments to the budget may change.
3. Payment for mandatory services. Basically, utilities fall into this group.

You also need to understand that often these factors directly influence each other.

For example, when taxes increase, many entrepreneurs will raise prices for their goods and services in order not to go bankrupt. This will lead to higher prices, which will significantly affect the amount of goods and services that a person can purchase for a fixed salary.

Another example is tax cuts. The fact is that nominal income means the totality of money without taxes. When decreasing tax rate, the person will receive a large amount in his hands. The difference will allow you to purchase additional goods and services, that is, in fact, real income will increase when taxes are reduced.

Remember that real income of the population is always less than nominal at a fixed level of profit, since in all modern states Money depreciates due to inflation.

Dynamics of real income

To understand the dynamics of real incomes of the Russian population, we need to consider the relationship between the size of inflation growth and the growth of real wages. Why is this question so important? The fact is that in the media you can often hear what Lately wages have increased, which means the standard of living has increased. And indeed, if you look at statistical data, you will find that over the past 10 years salaries grew in almost all sectors of the economy.

But does this mean that the standard of living has increased?

This question is controversial and economists do not have a definitive answer. However, the following can be assumed:

If nominal wages grow faster than inflation (with a fixed level of taxes and equal costs of utilities), then the real level of income increases.

Let's look at an example. Let’s say that the level of taxes in the country has not changed over the year and there has been no increase in prices for utility services, but real salaries increased by 10%. Inflation for the year was 5%. Then the real wage growth was 10% - 5% = 5%.

In this case, economic growth occurs in the country, the population has more money. Excess money is used either for new expenses (purchase of things or services). People can also deposit money in a bank, which in turn will issue this money as credit loans other people for business development, which will provide new jobs, increase the variety of goods on the market, and so on.

If nominal wages grow slower than inflation, or grow at the same level (with a fixed level of taxes and equal costs of utilities), then the real level of income of the population decreases or remains unchanged.

Let’s say that in one country over the course of a year there were no changes in taxes or increases in prices for utilities, and real wages increased by 5%, and in another country the same thing happened, but real wages increased by 3%. Let's also assume that inflation in both countries was 5%. Then the real growth of wages in the first country was 5% - 5% = 0%, and in the second the growth of real wages will be 2% - 5% = -3%.

In this case, in the first country the real incomes of the population have not changed compared to last year. And in the second country they decreased. With a general increase in wages, the population becomes poorer.

When the tax rate changes, real income also changes. For example, when the tax rate increases, there is a double reduction in salaries for employees - firstly, now the employee transfers a large amount of money to the budget, and secondly, entrepreneurs, having lost part of the profit, usually cut the salaries of their employees.

How have the real incomes of Russians changed recently? Numerous statistical studies show the following:

• The nineties saw a serious collapse in real incomes. The peak of the collapse occurred in 1998, when real wages fell by 49% compared to the Soviet period. However, one must always remember that in the nineties economic accounting was kept rather poorly, and there were also many underground industries. That's why a large number of wages were not taken into account, so it is quite possible that the collapse was still somewhat less.
• IN zero years there is a gradual real increase in income. The 2000s also saw gradual macroeconomic stabilization. Real incomes grew at an average rate of 3-4% per year, although not all economists agree with this estimate. In 2008, the global economic crisis began, which led to a moderate drop in real incomes of the population.
• In the tenth years, due to various factors (consequences of the global economic crisis, sanctions and some others) there was a decline in real incomes again. Experts cite different figures for the decline, but most economists are inclined to believe that the rate of decline in real incomes of Russians in 2016 amounted to 5% per year, and over the past 5 years, real incomes have decreased by a total of 15-20%.

Conclusion

Now let's summarize the above.

The totality of goods, services and money that a person receives over a certain period is called income. Income is generated both from cash receipts that a person stores or spends on certain goods and services, and from natural goods. Another source of income is various free services provided by the state.

Purely monetary part income is called nominal income. Nominal income is calculated without taking into account tax contributions to the budget. Economic science states that for a fixed amount of money at different times you can buy different quantities of the same goods and services. This is due to inflation and change tax burden. To emphasize this feature, economists coined the term “real income.” Real incomes are nominal incomes taking into account the price index and tax deductions.

When comparing living standards, many journalists often compare only the size of salaries. However, such a comparison will not be very correct, since both wages and the level of prices for goods and services may change at different times. To avoid this drawback, it is necessary to pay attention to the growth of real wages, since they more accurately reflect the well-being of the population.

Real wages in the Russian Federation at different times differed quite greatly from each other. In the nineties, real wages fell quite significantly compared to the Soviet period, but in the 2000s they began to rise again. After the global economic crisis and sanctions, real wages began to decline again, although the decrease compared to the nineties was not so significant.