Explanatory Notes on Main Statistical Indicators

Urban Households

Number of Dependents per Urban Employee refers to the difference between number of persons and the number of retired persons, which is divided by the number of employed persons in an urban household. The formula is:

Number of Dependents per Urban Employee = (number of persons - the number of retired persons in an urban household)/ number of employed persons in the household

Familial Gross Income refers to the sum of wage and salary; net business income; income from properties; and income from transfers of all members living together in a household surveyed. Income from selling of properties and income from borrowing are not included. Income is calculated on actual basis. Any income paid in the survey period, no matter it is paid retroactively or prepaid, is included according to the facts.

Annual Disposable Income refers to the actual income at the disposal of members of the households which can be used for final consumption, other non-compulsory expenditure and savings. This equals to total income minus income tax, personal contribution to social security and subsidy for keeping accounts in a sample household. The following formula is used:

Annual Disposable Income = total household income – personal income tax - personal contribution to social security - subsidy for keeping accounts for a sampled household

Emolument refers to income earned by employed persons from labour in all channels, including other earnings from main job, second job, other par-time job, and odd work.

Laborage and Allowance Income s refers to all labor rewards and welfares received by a labor from the employer.

Other Income from Work refers to the rewards received by family members from any second job, part-time job, and odd work.

Business Income refers to the net income of family members from productive and operating activities. It is the income of all productive and operating income deducting the production cost and tax. If the income in the period is smaller than the production cost, the difference is entered in the “Other Expenditure on Lending”.

Property Income  refers to the income earned from personal estates (such as bank deposits, securities) and real estates (such as house and land) owned by households, including the interest, rent, and patent income gained from transfer of use right of any property; bonus from property operation and property premium; excluding the income from selling of any property.

Insurance Proceeds refers to the net proceeds of insurance gained by households for participating in savings-type insurance after the paid insurance principal is deducted, excluding the income of insurance claim paid by the responsible person under the insurance program to the policyholder.

Other Income from Yield refers to the return on investment earned by households from investment acts other than stock transactions and insurance, such as income from selling artwork, stamps and other collections in excess of their original purchase cots; any profit from investment in operating activities (without personally participating in the operation); premium from property assignment, including the added value earned from house sales.

Income from Intellectual Property Rights refers to the net income from transfer of any intellectual property right such as any patent and copyright owned by a family or any family member.

Transfer Income refers to various transfer payment from the State, enterprises, companies, and social groups to households, along with income transfer between households, including such government’s transfer of personal income as retirement pension, unemployment relief payment, and compensations; such transfer of personal income from enterprises and companies as dismissal pay, insurance claim compensation, public accumulation funds for housing, and donation and support between families.

Income from Insurance refers to the insurance income obtained by households participating in insurance programs, including any claim payment and other agreed compensation from an insurance company, such as compensation for personal incidence, compensation for property loss, and compensation for hospitalization costs, excluding annuity paid fro life insurance.

Subsidy for Account Keeping refers to the cash paid by authorities of statistics, employers and other channels to the sample household for its responsibility of accounts keeping, excluding any allowance in kind.

Proceeds from Sales of Belongings refers to the income received by the sample household for selling any household property. As the sale of household property is a conversion of physical form of household property to monetary form, and the total amount of household properties remains unchanged, the income from selling property is not included in the disposable income. The amount of household property, including withdrawal of bank deposits, borrowings, lending repaid, conversion and sale of securities, returned principal of investment, loans, etc.

Credit Income refers to the non-productive and non-operating income which causes no change in the amount of household property, including withdrawal of bank deposits, borrowings, lending repaid, conversion and sale of securities, returned principal of investment, loans, etc.

Familial Gross Expenditures refers to all expenditure of households except expenditure on lending. It includes expenditure on consumption; on purchasing or building houses; on transfers; on properties; and on social security. Expenditure is calculated with the total value of goods and services actually purchased. Whether they are purchased with lump-sum payment, installment, or on credit basis, the goods and services are measured at their total value so long as they are consumed. In the case of installment or credit-based purchase, the difference between the actually made payment and the payables shall be entered in the relevant item of income from borrowing and lending.

Consumption Expenditure of Urban Households refers to total expenditure of households for consumption in daily life,  including eight major categories, i.e. expenditure on the food, clothing, housing, household appliances and services, health care and medical services, transport and communications, recreation, education and cultural services; and miscellaneous goods and services. It includes any goods and service for donation. Components of consumption expenditure are classified according to the purpose of goods and services. In the event of any discrepancy in the aim and purpose of consumption expenditure, it must be involved in relevant category according to the purpose of goods and service.

Expenditure of Urban Households on Consumption of Services refers to expenditure of households on various kinds of non-commercial services provided by society, including services paid for other persons. Not like commodity consumption, service consumption is completed in a consistent period and space.

Expenditure on Purchasing or Building Houses refers to all expenditures for purchase and construction of house by the sample household.

Transfer Expenditure refers to the transfer payment made by the sample household to the State, enterprises and companies, households and individuals, including tax payment, donation and support payments, etc.

Property Expenditures refers to relevant costs including interest paid by the sample household for purchasing or maintaining properties.

Social Security Expenditures refers to the personal payment made by members of the sample family for any social security program stated in national laws and regulations, excluding the payment made by employers for social security.

Rural Households

Number of Dependents per Labour refers to the number of permanent population in the sample household divided by the number of full/semi labours. It is calculated with the following formula:

Number of Dependents per Labour = Number of permanent population in the sample household / number of full/semi labours

Full/Semi Labour Force in Rural Households refers to persons among permanent family members in rural households who are capable of working and work frequently. This is one of the indicators for basic production elements, and an important source for production development and increase of farmer’s household income. As stated in regulations, rural males aged 18-50, females aged 18-45 are full labours. Males aged 16-17, and 51-60, females aged 16-17 and 46-55 are semi-labours. Full/Semi Labour Force in Rural Households includes the male and female full/semi labours within the above-mentioned range age as well as those beyond such range of age who are capable of working and work frequently; also include labours among permanent members in rural households who are employees. But it exclude persons who are within the range of labour age but incapable of working.

Total Income of Rural Households refers to the total income earned from various sources by the rural households and their members in the reporting period, and by the nature of income, consists of income from wages and salaries, income from household operations, income from properties and transfer income.

Net Income refers to the total income of rural households from all sources minus all corresponding expenses. Net income is mainly used as input for reinvestment in production and as consumption expenditure of the year, and also used for savings and non-compulsory expenses of various forms. “Per-capita net income of farmers” is the level of net income averaged by population, reflecting the average income level of rural households in a given area. It is calculated as follows:

Net income = total income - household operation expenses - taxes and fees paid - taxes and fees - depreciation of fixed assets for production – income from donation by rural internal relatives and friends

Rural Household Expenditures on Living Consumption refers to spending by rural households on material life and ideological life, including consumption spending on food, clothes, housing, household appliance and service, medical service and health care, transport and communication, cultural, educational and entertainment supplies and services, other goods and services.

Engel’s Coefficient Along with the increase in household and personal income, a gradually smaller portion of income is used for purchase of food. This law is called Engel’s law, and the coefficient reflecting such law is called Engel’s Coefficient. It is calculated as following: