IP01025 Equivalent income by deciles, sex and age (2009-2018)
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Høgni P. Vilhelm
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Statistics Faroe Islands


-  Nil (exactly zero)
0  Rounded to zero
 •  Not applicable
 ••  Not available or too uncertain
 ••• Not disclosed, confidentiality/privacy protected

Equivalent income
 Adjusted household income to take account of different household compositions.
 Equivalent income shows the average purchasing power of the household members.

Concerning the quantile intervals in these tables
Quantile (per mille and percentile) intervals of gross income, disposable income, taxes and equivalent income are calculated having only whole numbers of persons in each interval, but not always the same number in each interval. The value in the interval is the arithmetic mean of the total amounts in the interval. The intervals are ordered ascending by the mean in each interval. The first quantile interval has the lowest mean and the last quantile has the highest mean.
Example: The per mille intervals in the vector disposable income in 2009
36,294 persons are to be distributed evenly in 1000 intervals such that all intervals contain a whole number of persons. This is accomplished by having 37 persons in the first 294 intervals and 36 persons in the last 706 intervals. This ensures that the averages will be ascending across interval 294 and 295 just as across intervals containing the same number of persons.
Take note that when the total income is multiplied for several quantile intervals simultanously there is a break in the incremental growth where the number of persons changes. This is not a problem, on the contrary. This approach guarantees that subsequent calculations of ratios and sums will be correct according to the actual amounts the intervals are calculated from.
The distribution of averages in each interval aggrees so well with the distribution of (standard) quantiles that there is almost no visible difference between these methods. A standard quantile distribution would not allow the precise calculations possible by using interval means.
The series disposable income and taxes are evaluated separately. There is no exact correspondance between disposable income and the difference between gross income and taxes due to the fact that a (small) number of persons are not the the same per mille interval for a certain year. A person with a high gross income can for example have an extraordinary high (or promoted) taxdeduction resulting in almost no taxes.
decile equivalent income
 •1st decile: 10% of the population have an income below 1st decile
 •2nd decile: 20% of the population have an income below 2nd decile
 •51th decile: 50% of the population have an income below 5th decile
  Which is also the median equvalent income:
  Half of the population has a higher income and the other half a lower income.