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Updated: 20.03.2019
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Living standard of the population
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The available incomes of the population are the sum of cash and in kind resources obtained from a paid activity and self-employment, from the sale of agricultural products produced on the auxiliary land plot, income from assets, pensions and other social benefits, as well as other current transfers (including goods and money received from outside the household).

The incomes available by type may be in cash or in kind:

  • Cash incomes are amounts of cash received by people from different sources that are not reimbursable;
  • In kind incomes (assessed in MDL) are both the counter value of consumption from the household’s own resources (auxiliary land plot, stocks, etc.) and the counter value of in kind incomes received at the workplace, education, individuals, cash benefits, etc. The assessment in MDL is carried out at the average acquisition prices in the period of reference.

The incomes available by their source are divided in:

  • Incomes from paid activity are considered incomes received as wages, salary increases, bonuses, other salary entitlements provided for in the legislation or collective labor agreements for the time worked in the usual work schedule and in the additional one, as well as other salary entitlements. These incomes also include the counter value of products and services delivered as salary entitlements.
  • Incomes from the individual agricultural activity are the net income from the sale of own agricultural products, as well as the counter value of consumption received from the own unsold agricultural resources.
  • Incomes from individual non-agricultural activity are the net incomes received from various types of self-employment in non-agriculture. These incomes also include the amounts received from the sale of end products of individual work activities and from the profit obtained by individuals as a result of trade-mediation activities.
  • Incomes from assets – funds received by the population as interest for bank deposits and loans provided to individuals; dividends and sales of shares; rent payments for assets that are not related to the production activity (real estate, means of transport, long-term use assets, etc.).
  • Incomes from social welfare benefits cover old-age pensions, disability pensions and survivor’s pensions; social allowances; benefits for incapacity to work; one-off benefits (for child birth, death benefits, for the care of ill people); care of children under 1.5/3.0, for children of mothers with many children and single mothers who have children under 16 (18); social allowances, benefits for veterans and war widows; scholarships; death allowances; nominal compensations, etc.
  • Other incomes – alimonies; cash and goods received for free, cash received from life insurance, personal property, etc.

People’s consumption expenditures correspond to the expenses in cash and in kind for the household’s current consumption needs: foodstuffs, nonfood products and utility bills.

People’s consumption expenditures by their destination are divided in:

  • Expenses for food products – overall expenditure for the procurement of consumed food products, as well as the counter value of human food consumption from the household’s own resources.
  • Expenses for alcoholic drinks and tobacco products – overall expenditure for the procurement of alcoholic drinks, tobacco and smoking accessories, as well as the counter value of the consumption of these products from the household’s own resources.
  • Expenses for clothes and shoes – overall expenditure for the procurement of clothes and shoes, as well as expenses incurred for the payment of services related to the production and fixing of these.
  • Expenses for dwelling maintenance - overall expenditure for rent, energy, water and utility bills, as well as the expenses for refurbishing and repairing the dwelling.
  • Expenses for dwelling refurbishment - overall expenditure for the procurement of long-term use goods, home appliances, as well as the payment of services related to the maintenance of these.
  • Expenses for healthcare and health – overall expenditure incurred for the procurement of medicines, medical equipment, sanitary and hygiene objects, payment of healthcare services and of hospitalized treatment.
  • Expenses for transport – overall expenditure incurred for the procurement of vehicles, spare parts, services related to their maintenance and fixing, as well as the payment of various services of transportation.
  • Expenses for communications – overall expenditure incurred for the payment of post and telecommunication services, as well as expenses related to the maintenance of telecommunication equipment.
  • Expenses for entertainment – overall expenditure incurred for the procurement of social-cultural, leisure and sports objects; printed production (manuals, teaching materials, newspapers, office supplies, etc.); including the payment of different cultural activities and tourism services, etc.
  • Expenses for education – overall expenditure incurred for the procurement of manuals, school supplies, etc., as well as payments for education services, including extracurricular activities and private lessons.
  • Expenses for hotels, restaurants, cafes, etc. – overall expenditure incurred for accommodation and nutrition outside the household in various specialized places.
  • Other expenses – overall expenditure incurred for the procurement of hygiene and cosmetics products, haberdashery; payment for the insurance of life, real estate, means of transport, etc.; pocket money; money provided as a gift to individuals, etc.

Subsistence level represents the minimal volume of goods and services, necessary for the satisfaction of basic requirements, health protection and support of human vital functions.

Household– a group of two or more individuals living together who are, generally, relatives and share a common budget, participate integrally or partially in the formation of incomes and their spending or the individual living and maintaining a separate household that does not belong to another household.

Household with children is considered the household that includes children under 18.

Family couples – are the households consisting of couples with or without unmarried children.

Single people – households consisting of a single person who does not have relatives, or who has relatives but lives separately from them and does not share a common budget or financial relationships with them.

Households consisting of several family nuclei – are households made of several couples with or without unmarried children or a parent with unmarried children.

Gini coefficient – sets the degree of deviation of the effective distribution of incomes/expenses by equal groups of population from the line of uniform distribution of incomes/expenses. The statistical value of the coefficient varies from 0 to 1; when it is 0 – there is overall equality of incomes/expenses among all groups of population; when it is 1 – there is total inequality, all incomes/expenses belong to one individual.

Quintile – one of the four values dividing the series of frequencies in five equal parts, so that the first 20% (1st quintile) represents the population with the lowest incomes/expenses, while the last 20% (5th quintile) represents the population with the highest incomes/expenses.

Decile – is one of the nine values that divide the series of frequencies in ten equal parts so that the first 10% (1st decile) represent the population with the lowest expenses, while the last 10% (10th decile) represent the population with the highest expenses.

Growth rhythm of incomes/consumption expenses – is the evolution in time of incomes/consumption expenses and two values of the same indicator recorded in different time units are used to calculate it.

 
 
 
 
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