| Relevance/rationale of the indicator (resp. why the indicator was chosen to measure the target and how it is suitable for these purposes) |
Addressing social inclusion and inequality is important on the global development agenda as well as on the national development agenda of many countries. The share of the population living below 50% of median national income is a measure that is useful for monitoring the level and trends in social inclusion, relative poverty and inequality within a country. The share of people living below 50% of the median is an indicator of relative poverty and inequality of the income distribution within a country. This indicator and similar relative measures are commonly used for poverty measurement in rich countries (including Organization for Economic Cooperation and Development’s (OECD) poverty indicators and Eurostat’s indicators of risk of poverty or social exclusion) and are increasingly also used as a complementary measure of inequality and poverty in low- and middle- income countries. |
| Target value of the indicator and its evaluation |
|
| Definition |
The proportion of people living below 50 percent of median income (or consumption) is the share (%) of a country’s population living on less than half of the consumption/income level of the median of the national income/consumption distribution. |
| Measuring unit |
% |
| Indicator disaggregation |
By sex
By age |
| Reference period (resp. the period to which the indicator relates) |
Year |
| Related geographical area |
CZ (NUTS 0) |
| Comment |
The indicator is measured using per capita welfare measure of consumption or income. The indicator is calculated by estimating the share of the population in a country living on less than 50% of median of the national distribution of income or consumption, as estimated from survey data. Per capita income or consumption is estimated using total household income or consumption divided by the total household size. Total disposable income or total consumption from both market and non-market sources is the desired welfare vector used. The estimation relies on the same harmonized welfare vectors (distributions) that are used for indicators 10.1.1 and 1.1.1. Using the same data and closely related methodologies ensures internal consistency across these closely related indicators. |
