Distribution of Household Income
An understanding of household income and expenditure is essential to consideration of poverty. However, income is difficult to measure as it includes monetary and non-monetary components (for instance, farm households consume parts of their own farm produce). Household income is defined as the total amount of income available for final consumption expenditure and other household expenditure that are not generally obligatory, and for saving. Wages and salary, agriculture, business, remittance, livestock, poultry, rickshaw/van pulling were taken as the major sources of income. Self-employment in household economic activities is common particularly in rural areas. In the field survey, collection of income data from such household activities is very difficult, because most of the households do not keep accounts of income earned from informal sectors. Moreover, they cannot remember the amount of income earned from all the different sources and transactions made during a 1-year reference period. Apart from recall and accounting problems, there is a tendency to conceal and less than candid about their income level, which is generally underreported for fear of income tax and other reasons. It is to some extent possible to correct these false statements by carrying out a large-scale detailed survey on economic activities. Keeping these problems in view, emphasis was given in preparing questionnaires and conducting field survey of pooled income and expenditure data from a variety of sources at the household level.
KeywordsIncome Inequality Capita Income Gini Coefficient Poor Household Kernel Density Estimation
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