Explanatory Notes on Main Statistical Indicators

Urban Households

Dependents Per Employed Pesron refers to the difference between the total number of persons and the number of retired persons in an urban household, which is divided by the number of employed persons in an urban household. The formula is:

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

Total Income of Household refers to the sum of wage income; net business income; income from properties; and income from transfers of members of the households. 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 repaid or prepaid, should be included.

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 expenditures and savings. This equals to total income minus income tax, personal contribution to social security and subsidies for keeping accounts in a sampled household. The following formula is used:

Disposable Income = Total Income of Household – Personal Income Tax - Personal Contribution to Social Security - Subsidies for Keeping Accounts for a Sampled Household

Wage Income refers to income earned by employed persons through all channels, including other earnings from main job, second job, part-time job, and casual work.

Wages and Subsidies refers to all rewards and welfares received by an employee from the employer.

Other Income from Work refers to the rewards received by family members from any second job, part-time job, and casual 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 counted 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; it does not include the income from selling of any property.

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

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

Transfer Income refers to various transfer payment from the nation, 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; transfer of personal income from enterprises and companies such as dismissal pay, insurance claim, public housing funds, and donation and support between households.

Insurance Income 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 from life insurance.

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

Income from Property Sales refers to the income received by the sampled household for selling any household properties. 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.

Loan 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.

Household Expenditures refers to all expenditures of households except credit expenditures. 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 counted in the relevant item of income from borrowing and lending.

Living Expenditures refers to total expenditures of households for consumption in daily life, including eight major categories, i.e. expenditures on foods, clothing, housing, household articles, appliances and services, healthcare and medical services, transportion and communication, recreational, educational and cultural services; and other goods and services. It includes any good or service for donation. Components of consumption expenditures are classified according to the purpose of goods and services. In the event of any discrepancy in the aim and purpose of consumption expenditures, it must be involved in relevant category according to the purpose of goods and services.

Service Living Expenditures 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.

Expenditures for Purchasing and Building Houses refers to all expenditures for purchase and construction of houses by the sampled households.

Transfer Expenditures refers to the transfer payment made by the sampled households 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 sampled households for purchasing or maintaining properties.

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

Total Building Area of Current Houses refers to the total building area of house resided by the surveyed households, which is calculated on the basis of the property ownership certificate or lease certificate. The building area can also be calculated as the usable floor space multiplied by 1.333, which shall deduct the building area of the house specially used for lease.

Rural Households

Dependents Per Labour Force refers to the number of permanent population in the sampled household divided by the number of full/semi labourers. It is calculated with the following formula:

Dependents Per Laborer = Number of Permanent Population in the Sampled Households / Number of Full/Semi laborers

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 and females aged 18-45 are full labours. Males aged 16-17 and 51-60 and females aged 16-17 and 46-55 are semi labor force. Full/Semi Labour Force in Rural Households includes the male and female full/semi labour force within the above-mentioned range age as well as those beyond such range of ages who are capable of working and work frequently; also include labourers 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 during the reporting period, and by the nature of income. It 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 Relatives and Friends In Rural Areas

Living Expenditures of Rural Households refers to spending by rural households on material life and cultural 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: