Explanatory Notes on Main Statistical Indicators

Disposable Income refer to the households income sum that can be used for final consumption expenditure and savings during the period of investigation. Disposable income includes cash and real income. According to sources of income, disposable income includes the wage income, net operating income, net property income, and net transfer income. The formula for computing:

Disposable income = the wage income+ net operating income+net property income+net transfer income

Net operating income = income - operating costs - depreciation of productive fixed assets - net taxes on production (production tax - production subsidies)

Net property income = income from property - property expenditure

The transfer of net income = income from transfer - transfer expenditure

Wage Income refers to income and all kinds of welfare obtained by laborers employed by different establishments, working independently or part time.

Net Operating Income refers to the net income from operation run by the members of households, and it equals to total income minus operating costs and depreciation of productive fixed assets and taxes on production.

Net Property Income refers to the net income obtained from the financial assets, non-financial assets such as housing and natural resources provided by its owners to other establishments, households or individuals. It includes net interest income, bonus, net income from saving insurance, net income from the transfer of the right to land contractual management, income from house renting, income from renting of other assets and net rental income of home ownership.

Income from Transfer refers to the current transaction between government, establishments, social organization and households, and to the income transaction between households. It includes annuity, pension, social relief, agricultural subsidy, disaster relief fund, and medical expense, which are provided by governments, institutions, social organizations. It also includes supporting expense, regular donations, and income provided by non-permanent population. It does not include donations between households.

Transfer Expenditure refers to the regular or obligatory expenditure provided by the households to governments, institutions, other households or residents. It includes taxes, social security expenditure, supporting expenditure, regular donation and compensation expenditure, etc.

Expense on Service Consumption refers to the consumption of all expenditure needs to meet the family daily life, including those for the consumer spending and for service consumption expenditure. According to different purposes, consumption can be divided into tobacco and food, clothing, housing, daily necessities and services, transportation and communication, education, culture and entertainment, health care, the other services. According to different sources, consumption can be divided into cash consumption, real consumer spending (including self occupied, from the unit, from the government and other social organizations).

Tobacco and Food refers to all kinds of expenditure on foods, tobaccos and beverages, including food and tobacco.

Clothing refers to the expenditure on clothes, clothing materials, shoes, accessories and charges for making clothes.

Housing refers to the expenditure related to residing, including rent, the expenditure of water, fuel, power and real estate management and net rental income of home ownership.

Daily Necessities and Services refers to the expenditure on daily necessities and home service, including the expenditures on furniture, decoration, appliance, textile, personal items and home service.

Transportation and Communication refers to the expenditure on transportation, communication, related service, maintenance, and vehicle insurance.

Education, Culture and Entertainment refers to the expenditure on education, culture and entertainment.

Health Care refers to the expenditure on health care, medicine, related products and service.

Other Services refers to the expenditure on the service that cannot be included in the services mentioned above.

Number of Dependents per Employee refers to the ratio between number of persons in households and the number of dependents.

Disposable Income of Households (in previous scope) refers to the households’ income sum used for final consumption expenditure and savings during the period of investigation, meaning the income that is disposable for households. Disposable income is the general income of households minus income tax, social security expenditure and subsidy for account-keeping. The formula for computing:

Disposable Income of Households = general income-income tax- personal social security expenditure - subsidy for account keeping

Rural Households Net Income refers to the total income of rural households from all sources minus all corresponding expenses. The formula for calculation is as follows:

Net income=total income-household operation expenses-taxes and fees -depreciation of fixed assets for production

Net income is mainly used as input for reproduction 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 which reflects the average income level of rural households in a given area.

The main difference between rural household disposable income and rural household net income is that the disposable income does not include the expenditure of donations to urban relatives, the expenditure on house purchasing, interest expenditure on consumer loans, and expenditure on pension and health care, but the net income includes all the expenditure mentioned above. When calculating the average income of rural household, the denominator is changed to permanent rural residents and the classification of income brought back by migrant workers is also changed.

Rural Full/Semi Labor Force Full labor force refers to persons capable of work, aged 18-50 for males and 18-45 for females. Semi labor force refers to persons capable of work, aged 16-17 and 51-60 for males and 16-17 and 46-55 for females. Persons at their working ages but not capable of work are not to be included as labor force. Persons not at working ages but participating regularly in work are included in semi labor force. For staff and workers as resident population of the household, they are included as full or semi labor force of the household if they are in the labor force.