Per capita income

<h2 id="limitations">Limitations</h2>
<p>While per capita income can be useful for many economic studies, it is important to keep in mind its limitations.
</p>
<ul><li>Comparisons of per capita income over time need to consider inflation. Without adjusting for <a href="/facts/Inflation/YvKtKrVI">inflation</a>, figures tend to overstate the effects of economic growth.</li>
<li>International comparisons can be distorted by cost of living differences not reflected in exchange rates. Where the objective is to compare living standards between countries, adjusting for differences in <a href="/facts/Purchasing_power_parity/qpRMGaXG">purchasing power parity</a> will more accurately reflect what people are actually able to buy with their money.</li>
<li>It is a <a href="/facts/Mean/swcEd4Pg">mean</a> value and does not reflect <a href="/facts/Income_inequality/2Kb0kBH5">income distribution</a>. If a country's income distribution is skewed, a small wealthy class can increase per capita income substantially while the majority of the population has no change in income. In this respect, <a href="/facts/Median_income/Jmc2UXTA">median income</a> is more useful when measuring of prosperity than per capita income, as it is less influenced by outliers.</li>
<li>Non-monetary activity, such as barter or services provided within the family, is usually not counted. The importance of these services varies widely among economies.</li>
<li>Per capita income does not consider whether income is invested in factors likely to improve the area's development, such as health, education, or infrastructure.</li></ul>
<h2 id="see-also">See also</h2>
<ul><li><a href="/facts/Disposable_household_and_per_capita_income/1AKezCVS">Disposable household and per capita income</a></li>
<li><a href="/facts/List_of_countries_by_average_wage/CEEL6KpB">List of countries by average wage</a></li>
<li><a href="/facts/List_of_countries_by_GDP_(nominal)_per_capita/CKNIxpFU">List of countries by GDP (nominal) per capita</a>—GDP at market or government official exchange rates per inhabitant</li>
<li><a href="/facts/List_of_countries_by_GDP_(PPP)_per_capita/EStd2aMH">List of countries by GDP (PPP) per capita</a>—GDP calculated at <a href="/facts/Purchasing_power_parity/qpRMGaXG">purchasing power parity</a> (PPP) exchange per inhabitant</li>
<li><a href="/facts/List_of_countries_by_GNI_(nominal)_per_capita/UdelqLk5">List of countries by GNI (nominal) per capita</a></li>
<li><a href="/facts/List_of_countries_by_GNI_(PPP)_per_capita/4w4csQEk">List of countries by GNI (PPP) per capita</a></li>
<li><a href="/facts/Real_income/H2AgdHIF">Real income</a></li>
<li><a href="/facts/List_of_countries_by_GNI_per_capita_growth/s706rq8e">List of countries by GNI per capita growth</a></li>
<li><a href="/facts/List_of_countries_by_income_equality/olwAHvgK">List of countries by income equality</a></li>
<li><a href="/facts/Total_personal_income/mbCdlbvf">Total personal income</a></li>
<li><a href="/facts/List_of_U.S._states_by_adjusted_per_capita_personal_income/anCUbGpm">List of U.S. states by adjusted per capita personal income</a></li></ul>

<h2 id="references">References</h2>

<ol>
<li id="fn:1"><p>"American Community Survey and Puerto Rico Community Survey: 2021 Subject Definitions". U.S. Census Bureau. p. 90. Retrieved 2024-01-28. <a href="https://www.census.gov/quickfacts/fact/note/US/INC910222" target="_blank">https://www.census.gov/quickfacts/fact/note/US/INC910222</a> <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li>
<li id="fn:2"><p>"The world's richest countries in 2023". The Economist. ISSN 0013-0613. Retrieved 2024-01-28. <a href="https://www.economist.com/graphic-detail/2023/12/15/the-worlds-richest-countries-in-2023" target="_blank">https://www.economist.com/graphic-detail/2023/12/15/the-worlds-richest-countries-in-2023</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></p></li>
<li id="fn:3"><p>Förster, Michael; d'Ercole, Marco (2012). Besharov, Douglas J.; Couch, Kenneth A. (eds.). Counting the poor: new thinking about European poverty measures and lessons for the United States. International policy exchange series. Oxford: Oxford Univ. Press. p. 28. ISBN 978-0-19-986058-6. <a href="978-0-19-986058-6" target="_blank">978-0-19-986058-6</a> <a href="#fnref:3" class="footnote-back-ref">↩</a></p></li>
<li id="fn:4"><p>Förster, Michael; d'Ercole, Marco (2012). Besharov, Douglas J.; Couch, Kenneth A. (eds.). Counting the poor: new thinking about European poverty measures and lessons for the United States. International policy exchange series. Oxford: Oxford Univ. Press. p. 28. ISBN 978-0-19-986058-6. <a href="978-0-19-986058-6" target="_blank">978-0-19-986058-6</a> <a href="#fnref:4" class="footnote-back-ref">↩</a></p></li>
</ol>

Per capita income open-in-new

Per capita income