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

Household Income

Outline • Main Income indicators from HIES 2016 – 15+ population – Monthly Household income – Monthly Per-capita income – Monthly Income per earner – Main sources of income

Population included in HIES Population (excluding resorts and HIES 2016 labour quarters with 10+ ppl) 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 Outside the labor force Labour force Potential Labour Others outside Unemployed Employed Force the Labor force - Seeking, not available - Not seeking - Available, not seeking ) - Not Available Available potential job Unavailable job seekers seekers - seeking , not available - available, not seeking

Labour force participation rate (LFPR) Working age population Labour force participation rate = Labour force/ working age Labour force population LFPR: Unemployed Employed Maldives: 58% Male’: 61% Atolls: 55%

Labour force participation rate (LFPR)- Atolls

Employment-to-population ratio (Emp-to-pop) Working age population Employment-to-population ratio= Employed population/ working Labour force age population Emp-to-pop: Unemployed Employed 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 number of people per household 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 5.3 Republic 2.5 Figure: Average household size and average number of earners 5.3 Male’ 2.7 5.4 Average number of Income Earners per Household (number) 3/ Average household size Atolls 2.4 & average number of earners 4.9 HA 2.5 5.1 Hdh 2.5 5.5 Sh 2.4 4.9 N 2.4 Average household size 5.5 R 1.9 5.1 B 2.2 5.2 Lh 2.3 5.9 K 2.8 6.2 AA 2.6 6.6 Adh 3.1 4.9 V 2.6 5.0 M 2.7 6.2 F 3.0 6.4 Dh 2.7 5.3 Th 2.4 5.8 L 2.4 4.8 GA 2.0 5.0 Gdh 2.3 5.5 Gn 2.3 5.2 S 2.2

Monthly Household Income Average monthly income per household for the country is • Median income is the income value at which the income distribution is MVR 26,395 divided into two equal size groups. • Median household income is a Figure: Average (Mean) and Median better indicator than the mean income per household, 2016 (average) household income as the median is not dramatically affected 37,035 40,000 by extreme or unusually high or low Average income in 29,600 values. 35,000 26,395 • Male’ is double If the median and mean vary greatly, then income varies greatly that of the Atolls 30,000 among the households. 19,900 18,358 25,000 Overall, the median is In MVR 13,955 20,000 approximately MVR 6,495 15,000 less than the average 10,000 income with Male’ showing a 5,000 wider variation between median - and average income indicating Republic Male' Atolls that income in Male’ varies notably among households Median Mean compared to atolls.

Monthly Household Income by locality All the locations • except Male’ and Faafu (F) atoll has the Figure: Average monthly Faafu (F) atoll are highest average household income (mean below national household income and median) by locality, mean household 2016 • income (MVR This is likely to be due to the high LFPR and employment- 26,395) 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

Average number of earners by locality Figure: Average number of earners by Atolls, 2016 Earners include those who earn income from employment related 4 activity as well as those who receive income from rent, 3.1 3.0 2.8 dividend, pension, transfer .. 2.7 2.7 2.7 2.6 3 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 In number Average number of earners 2 were 2.5 persons per household • Alif Dhaal Atoll (Adh) has on 1 average the highest number of earners followed by Faafu Atoll (F) at 3 earners 0 Adh F K M Dh Male' AA V HA Hdh Sh Th L N Gn Gdh Lh S B GA R per household. • At the low end is Raa Atoll (R) with an average of 1.9 earners per household.

Share of Income by income quintiles • 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) . Figure: Share of income by per capita income In Male’ : the poorest 20 percent of the quintiles, 2016 total households earned only 1% of the Share of Income by per capita quintiles, 2016 total income compared to 62% of the total 100% 90% income earned by the richest 20 percent 23 80% indicating inequality within Male’. 47 Share of Income (in %) 70% 62 23 60% 50% In Atolls: the share of expenditure between 22 24 40% different per capita quintiles is equally 30% 22 16 distributed among the top three 20% 19 10 10% 10 quintiles (top 60 percent) with less share 11 5 5 1 0% among the bottom 40 percent Republic Male' Atolls Poorest 20% 21st -40th 41st -60th 61st -80th Richest 20%

Average household income by income quintiles Per capita Share of households Share of population Average household Income Income Maldives Male' Atolls Maldives Male' Atolls Maldives Male' Atolls quintile Poorest 20% 18% 5% 28% 20% 5% 31% 7,108 7,016 7,120 Figure: Share of income by per capita income quintiles, 2016 21 st -40 th 18% 11% 24% 20% 12% 26% 14,767 15,201 14,617 41 st -60 th 18% 16% 20% 20% 18% 21% 23,158 24,280 22,483 61 st -80 th 20% 24% 17% 20% 27% 15% 29,536 33,180 25,548 Richest 20% 26% 44% 12% 20% 37% 7% 35,878 48,236 52,529 In Male’ : the poorest 20 percent of In Atolls: the poorest 20 percent of the households earned on average the households earned on average MVR 7,016 while the richest 20 MVR 7,120 while the richest 20 percent of the household earned on percent of the household earned on average MVR 52,529. average MVR 35,878.

Cumulative Distribution Function of total per capita monthly income – The steep rise in the Figure: Cumulative Distribution Function of curve indicates that total per capita monthly income, Maldives large proportion of the Cumulative Distribution Function population earns less mean= 4944, median= 3850 1 than the average per capita (MVR 4,944) per .8 month. .6 – Approximately 60% of .4 the population earns .2 less than MVR 5,000 per month. 0 0 5000 10000 15000 20000 25000 Average monthly income (MVR/person/month)

Cumulative Distribution Function of total per capita monthly income • Comparison between Male’ & Atolls Figure: Cumulative Distribution Function of total shows cumulative distribution function for the Atoll is relatively steep than per capita monthly income, Male’ & Atolls Male’. • This means that people in the Atolls Cumulative Distribution Function, Male' & Atolls Atoll – 1 get less per capita income than Mean: those in the Male’. 3421 .8 Almost 60% of the Atoll population • gets less MVR 3,421 per person .6 per month Male’– Mean: .4 6984 only about 20% of the Male’ • population gets less MVR 3,421 .2 per person per month. 0 This shows that there is huge – 0 5000 10000 15000 20000 25000 income disparity between percapita income (MVR/month) Male’ and in the Atolls . Atoll Male'

Distribution of total per capita monthly income, Male’ & Atolls – the distribution in Figure: Distribution of total per capita Male’ is shifted to monthly income, Male’ & Atolls the right, indicating Distribution of monthly per capita income, Male' & Atolls 2016 mean Male'= 6984, mean Atolls= 3421 higher income compare to Atolls .0002 – income distribution of Atoll is right .0001 (positive) skewed- majority of the population earns 0 less income 0 5000 10000 15000 20000 25000 per capita monthly income (MVR) compared to Male’ Male' Atoll

Monthly per-capita income Average monthly per- Table: Average (mean) and median of per -capita capita income Income by locality, 2016 for the country is Locality Mean Median MVR 4,944 Maldives 4,944 3,850 Male' 6,984 5,667 Atolls 3,421 2,818 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

Monthly per-capita income by locality Average per capita • Faafu (F) atoll has income in all the the highest locations except Figure: Average and median average per- Male’ are below per-capita monthly income by the national capita income locality, 2016 average while the lowest per-capita is observed in Raa (R) Atoll.