Household Income Outline Main Income indicators from HIES 2016 - - PowerPoint PPT Presentation

Household Income

• Main Income indicators from HIES 2016

– 15+ population – Monthly Household income – Monthly Per-capita income – Monthly Income per earner – Main sources of income

Outline

Population included in HIES

Population (excluding resorts and labour quarters with 10+ ppl)

HIES 2016

Total Population 379,467 Percentage of 15+ population (%) 71% Young population (15-24 years) 18% Youth population (18-34 years) 31%

Note: Population presented here is for administrative islands including Male’. This excluding labour quarters (10 or more people living)

15+ population -Distribution

Working age population

Labour force

Employed

Unemployed

Outside the labor force

Potential Labour Force

• Seeking, not available
• Available, not seeking)

Available potential job seekers

• available, not seeking

Unavailable job seekers

• seeking , not available

Others outside the Labor force

• Not seeking
• Not Available

Labour force participation rate (LFPR)

Working age population

Labour force

Employed

Unemployed

Labour force participation rate = Labour force/ working age population

LFPR: Maldives: 58% Male’: 61% Atolls: 55%

Labour force participation rate (LFPR)- Atolls

Employment-to-population ratio (Emp-to-pop)

Working age population

Labour force

Employed

Unemployed

Employment-to-population ratio= Employed population/ working age population

Emp-to-pop: Maldives: 54% Male’: 56% Atolls: 52%

Employment to population ratio- Atolls

Income

• Household income includes both
• employment related income as well as
• other income such as
• rental income,
• Transfer income such as
• social security benefits,
• government assistance,
• pension,
• Cash receive from relatives working in

resort etc

Average household size & average number of earners

Figure: Average household size and average number of earners

5.3 5.3 5.4 4.9 5.1 5.5 4.9 5.5 5.1 5.2 5.9 6.2 6.6 4.9 5.0 6.2 6.4 5.3 5.8 4.8 5.0 5.5 5.2 2.5 2.7 2.4 2.5 2.5 2.4 2.4 1.9 2.2 2.3 2.8 2.6 3.1 2.6 2.7 3.0 2.7 2.4 2.4 2.0 2.3 2.3 2.2

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

Republic Male’ Atolls HA Hdh Sh N R B Lh K AA Adh V M F Dh Th L GA Gdh Gn S

Average number of people per household

Average household size Average number of Income Earners per Household (number) 3/

• Median income is the income value

at which the income distribution is divided into two equal size groups.

• Median household income is a

better indicator than the mean (average) household income as the median is not dramatically affected by extreme or unusually high or low values.

• If the median and mean vary

greatly, then income varies greatly among the households.

Monthly Household Income

19,900 29,600 13,955 26,395 37,035 18,358

• 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 Republic Male' Atolls In MVR Median Mean

Figure: Average (Mean) and Median income per household, 2016 Average monthly income per household for the country is

MVR 26,395

Average income in Male’ is double that of the Atolls Overall, the median is approximately MVR 6,495

less than the average income with Male’ showing a

wider variation between median and average income indicating that income in Male’ varies notably among households compared to atolls.

• Faafu (F) atoll has the

highest average household income

• This is likely to be due to the

high LFPR and employment- to-population ratio as well as more earning members per household in the Atoll.

• The lowest household

income is observed in Raa (R) Atoll.

• This is likely to be due to the

lower LFPR & employment- to-population ratio as well as less number of earning members per household in the Atoll

Monthly Household Income by locality

Figure: Average monthly household income (mean and median) by locality, 2016 All the locations except Male’ and Faafu (F) atoll are below national mean household income (MVR 26,395)

• Average number of earners

were 2.5 persons per household

• Alif Dhaal Atoll (Adh) has on

average the highest number

• f earners followed by

Faafu Atoll (F) at 3 earners per household.

• At the low end is Raa Atoll

(R) with an average of 1.9 earners per household.

Average number of earners by locality

Figure: Average number of earners by Atolls, 2016 Earners include those who earn income from employment related activity as well as those who receive income from rent, dividend, pension, transfer ..

3.1 3.0 2.8 2.7 2.7 2.7 2.6 2.6 2.5 2.5 2.4 2.4 2.4 2.4 2.3 2.3 2.3 2.2 2.2 2.0 1.9

1 2 3 4

Adh F K M Dh Male' AA V HA Hdh Sh Th L N Gn Gdh Lh S B GA R In number

• The structure of income distribution, particularly the inequality of the distribution is

easier to understand when presented by income quintiles (income equally divided into 5 groups) and deciles (income equally divided into 10 groups) .

Share of Income by income quintiles

Figure: Share of income by per capita income quintiles, 2016

5 1 11 10 5 19 16 10 24 22 22 23 47 62 23 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Republic Male' Atolls Share of Income (in %)

Share of Income by per capita quintiles, 2016

Poorest 20% 21st -40th 41st -60th 61st -80th Richest 20%

In Male’: the poorest 20 percent of the total households earned only 1% of the total income compared to 62% of the total income earned by the richest 20 percent indicating inequality within Male’. In Atolls: the share of expenditure between different per capita quintiles is equally

distributed among the top three quintiles (top 60 percent) with less share

among the bottom 40 percent

Average household income by income quintiles

Figure: Share of income by per capita income quintiles, 2016 In Male’: the poorest 20 percent of the households earned on average

MVR 7,016 while the richest 20

percent of the household earned on

average MVR 52,529. In Atolls: the poorest 20 percent of the households earned on average

MVR 7,120 while the richest 20

percent of the household earned on

average MVR 35,878.

Per capita Income quintile Share of households Share of population Average household Income Maldives Male' Atolls Maldives Male' Atolls Maldives Male' Atolls Poorest 20% 18% 5% 28% 20% 5% 31% 7,108 7,016 7,120 21st -40th 18% 11% 24% 20% 12% 26% 14,767 15,201 14,617 41st-60th 18% 16% 20% 20% 18% 21% 23,158 24,280 22,483 61st-80th 20% 24% 17% 20% 27% 15% 29,536 33,180 25,548 Richest 20% 26% 44% 12% 20% 37% 7% 48,236 52,529 35,878

Cumulative Distribution Function of total per capita monthly income

Figure: Cumulative Distribution Function of total per capita monthly income, Maldives

.2 .4 .6 .8 1 5000 10000 15000 20000 25000 Average monthly income (MVR/person/month) mean= 4944, median= 3850

Cumulative Distribution Function

– The steep rise in the curve indicates that large proportion of the population earns less than the average per capita (MVR 4,944) per month. – Approximately 60% of the population earns less than MVR 5,000 per month.

.2 .4 .6 .8 1 5000 10000 15000 20000 25000 percapita income (MVR/month) Atoll Male'

Cumulative Distribution Function, Male' & Atolls

Cumulative Distribution Function of total per capita monthly income

Figure: Cumulative Distribution Function of total per capita monthly income, Male’ & Atolls

• Comparison between Male’ & Atolls

shows cumulative distribution function for the Atoll is relatively steep than Male’.

• This means that people in the Atolls

get less per capita income than

those in the Male’.

• Almost 60% of the Atoll population

gets less MVR 3,421 per person per month

• nly about 20% of the Male’

population gets less MVR 3,421 per person per month.

– This shows that there is huge

income disparity between Male’ and in the Atolls.

Atoll – Mean: 3421 Male’– Mean: 6984

Distribution of total per capita monthly income, Male’ & Atolls

Figure: Distribution of total per capita monthly income, Male’ & Atolls

– the distribution in

Male’ is shifted to

the right, indicating

higher income

compare to Atolls – income distribution

• f Atoll is right

(positive) skewed-

majority of the

population earns

less income

compared to Male’

.0001 .0002 5000 10000 15000 20000 25000 per capita monthly income (MVR) Male' Atoll

mean Male'= 6984, mean Atolls= 3421

Distribution of monthly per capita income, Male' & Atolls 2016

Monthly per-capita income

Table: Average (mean) and median of per -capita Income by locality, 2016

• The mean monthly per capita income for Male’ is MVR 6,984 which is

almost 2 times higher than the Atolls average

• Difference between mean and median shows the skewness

Locality Mean Median Maldives 4,944 3,850 Male' 6,984 5,667 Atolls 3,421 2,818

Average monthly per-

capita income

for the country is

MVR 4,944

• Faafu (F) atoll has

the highest average per- capita income while the lowest per-capita is

• bserved in Raa

(R) Atoll.

Monthly per-capita income by locality

Figure: Average and median per-capita monthly income by locality, 2016 Average per capita income in all the locations except Male’ are below the national average

Households by per capita income groups

Figure: Frequency of population by per capita income group, 2016

• Highest proportion of population (28%) gets per capita incomes

between MVR 2,400 and 4,199 per month in the whole country as a whole as well as in the Atolls.

• In Male’, highest proportion of population who gets per capita

incomes between MVR 4,200 and 5,999 per month

Maldives Male’ and Atolls

Monthly income per earner

Figure: Average (mean) and median monthly income per earner, 2016

• income earners reports that the average monthly income per

earner and median income were MVR 10,449 and MVR 8,574

in 2016 respectively.

• Income per earners’ mean and median income in Male’ is almost

two times higher than those in the Atolls

the average

household size

in the country is 5.3

persons, average

number of income

earners is 2.5 persons per

household. 10,449 13,763 7,644 8,574 11,241 6,548

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

Republic Male' Atolls

in MVR

Mean Median

• the gap between mean

and median income per earner is high in Shaviyani Atoll (Sh) and in Male’.

• This means relatively

greater number of people in those locations earns large amount per month than those in

• ther Atolls.

Monthly income per earner by locality

Figure: Average (mean) monthly income per earner by Atolls, 2016

• 2

4 6 8 10 12 14 MALE HA HDH SH N R B Lh K AA Adh V M F Dh Th L GA GDh Gn S In Thousands

Mean Median

Number of earners by age group

Figure: Earners by age and sex in Male’, 2016

Throughout all age groups except age group 15-19 years, male earners are

more than females. Disparity between male and female is higher in Male’ than in the Atolls

Figure: Earners by age and sex in Atolls, 2016

0% 20% 40% 60% 80% 100% 120% 15-17 18-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+

earners as percnatge of 15+ population

Female Male

0% 20% 40% 60% 80% 100% 120% 15-17 18-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+

earners as percnatge of 15+ population

Female Male All sources of income

Number of earners by age group

Figure: Earners as a share of 15 year and above population from employment related income by age and sex, 2016

• Employment related income, higher percentage share of employment related

earners among males at all age group compared to females, 20 years and above.

• Huge gap between males and female in employment related income
• Female earners higher than male earners from other sources income such as

transfers and property income. The gender gap is fairly narrow

Figure: Earners as a share of 15 year and above population from other sources of income by age and sex, 2016

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

15-17 18-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+

earners as percnatge of 15+ population

Female Male

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

15-17 18-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+

earners as percnatge of 15+ population

Female Male

Source of income

Figure: Distribution of household income by Source and locality: 2016

Major sources of income is from wages and salaries

Wages & Salary, 62 Busine ss, 20 Property, 10 Transfe r, 8

Male'

Wages & Salary, 53 Business, 28 Transfer, 16 Property, 3

Atolls

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