Explanatory Notes on Main Statistical Indicators

I. Urban Households

Population of Urban Households refer to members of households living and sharing economically together in the urban areas. All the income and expenditure of all the members of such households are included in the income and expenditure of the household.

Proportion of Urban Employment refers to the proportion of employed population to the population of urban households.

Number of Dependents per Urban Employee refers to the ratio between number of persons in an urban household and the number of employed persons.

Total Income of Urban Households refers to the sum of wage income; net business income; income from properties; and income from transfers of members of the households. Income from selling of properties and income from borrowing are not included.

Disposable Income of Urban Households refers to the actual income at the disposal of members of the households which can be used for final consumption, other non-compulsory expenditure and savings. This equals to total income minus income tax, personal contribution to social security and subsidy for keeping diaries in being a sample household. The following formula is used:

Disposable Income of Urban Households= total household income - income tax - personal contribution to social security - subsidy for keeping diaries for a sampled household

Total Expenditure of Urban Households refers to all actual expenditure of households except expenditure on lending. It includes cash expenditure; property expenditure, transfer expenditure, social insurance expenditure and expenditure on house purchasing or house building.

Consumption Expenditure of Urban Households in Cash refers to total cash expenditure of households for consumption in daily life, including expenditure on the eight categories of food; clothing; housing; household appliances; transport and communications; education, cultural and recreational activities and medical care.

Consumption Expenditure of Urban Households on Services refers to non-commodity service expenditure of households on various kinds of cultural and living activities provided by society.

Urban Households by Income Group All households in the sample are grouped, by per capita disposable income of the household, into groups of lowest income, low income, lower middle income, middle income, upper middle income, high income and highest income, each group consisting of 10%, 10%, 20%, 20%, 20%, 10% and 10% of all households respectively. The lowest 5% of households are also referred to as poor households.

Engel’s Coefficient refers to the percentage of expenditure on food to the total consumption in cash, using the following formula:

=

II. Rural Household

Rural Households refer to usual resident households in rural areas. Usual resident households in rural areas are households residing on a long term basis(for more than one year) in the areas under the administration of township governments (not including county towns), and in the areas under the administration of villages in county towns. Households residing in the current addresses for over one year with their household registration in other places are still considered as resident households of the locality. For households with their household registration in one place but all members of the households having moved away to make a living in another place for over one year, they will not be included in the rural households of the area where they are registered, irrespective of whether they still keep their contracted land.

Usual Resident Population refers to persons staying at home regularly or for over 6 months during a year and integrated with the household economically and in terms of living. Members of the household staying away from the household for over 6 months but keeping a close economic relation with the household by sending the majority of income to the household are regarded as usual resident of the household. Government staff and workers or retirees living as close members of the household are also considered as usual resident. However, servicemen, students of secondary technical schools or schools of higher education and persons with stable jobs and residence outside the household (excluding those visiting relatives or seeking medical service) are not included as resident population of the household. Resident population is used in calculating income, consumption, accumulation on per capita basis of rural households and in analyzing composition of rural households.

Full/Semi Labour Force Full labour force refers to persons capable of work, aged 18-50 for males and 18-45 for females. Semi labour force refers to persons capable of work, aged 16-17 and 51-60 for males and 16-17 and 46-55 for females. Persons at their working ages but not capable of work are not to be included as labour force. Persons not at working ages but participating regularly in work are included in semi labour force. For staff and workers who are usual residents, are included as full or semi labour force of the household if they are in the labour force.

Total Income refers to the sum of income earned from various sources by the rural households and their members during the reference period, and is classified as income from wages and salaries, income from household operations, income from properties and income from transfers.

Income from Wages and Salaries refers to income from labour earned by the members of rural households employed by other units or individuals.

Income from Household Operations refers to income by the rural households as units of production and operation. Operations by rural households are classified according to their economic activities namely agriculture, forestry, animal husbandry, fishery, manufacturing, construction, transportation, post and telecommunications, wholesale, retail and catering, social service, culture, education, health, and other household operations.

Income from Properties refers to the income received as returns by owners of financial assets or tangible non-productive assets by providing capitals or tangible non-productive assets to other institutional units.

Income from Transfers refers to the receipt by rural households and their members of goods, services, capital or rights of assets without giving or repaying accordingly, excluding capital provided to them for the formation of fixed assets. In general, it refers to all income received by rural households through redistribution.

Cash Income refers to income received by rural households and their members in the form of cash during the reference period. It is classified, by source of income, into income from wages and salaries, cash income from household operations, income from properties and income from transfers.

Net Income of Rural Households refers to the total income of rural households from all sources minus all corresponding expenses. The formula for calculation is as follows:

Net income of rural households = total income - household operation expenses - taxes and fees-depreciation of fixed assets for production - gifts to rural relatives.

Net income is mainly used as input for reinvestment in production and as consumption expenditure of the year, and also used for savings and non-compulsory expenses of various forms. "Per capita net income of farmers" is the level of net income averaged by population, reflecting the average income level of rural population in a given area.

Total Expenditure refers to total expenses of rural households on production, consumption and redistribution, including expenditure on household operations; purchase of productive fixed assets; taxes and fees; consumption expenditure; expenses on properties; and expenses on transfers.