Archive:Income components statistics

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Data extracted in May 2016. Most recent data: Further Eurostat information, Main tables and Database. Planned article update: May 2017.

This article analyses recent statistics on income components in the European Union (EU). While statistics measuring the poverty, deprivation, work intensity are widely disseminated by Eurostat, data on income, collected at a very detailed level are currently not completely exploited.

The aim of this article is to improve the income distribution dissemination so as to help the general public to better understand what the distribution of income is in each country and across Europe, providing key information especially during periods of crisis and thus raising the relevance of EU-SILC data on income.

For this article, the total household gross income, income components and their means and shares are calculated for 2014. The total household gross income is further broken down into (i) income from employment, (ii) income from pensions, (ii) income from benefits and allowances and (iv) income from other sources. For the analysis of the income components, we look at the breakdowns by different subpopulations such as income quintiles, household composition and the degree of urbanisation (for detailed definitions see section 2 Data sources and availability below).

Figure 1: Shares of income components EU-28, 2014
Source: Eurostat (????)

Figure 2: Figure 2: Share of income components by income quintiles groups EU-28, 2014
Source: Eurostat (????)

File:Shares of income components, 2014 (% of total household gross income) (¹).PNG

Figure 3: Shares of income components, 2014
Source: Eurostat (????)

Main statistical findings

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Text with Footnote

Distribution by sources of income by quintile income groups

In 2014, the main source of income in the EU-28, is employment (68%), followed by pensions (20.6%); benefits (6.8%) and other sources (4.5%), as shown in Figure 1. The distribution of income components across quintiles for the EU-28 follows a slightly different pattern: Although work remains the main source of income; the shares range from 43.5 percent for the lowest (first) quintile to 75.3 percent for the highest (fifth) quintile. The second biggest disparity across the quintiles can be observed in the income from benefits: it is households in the first income quintile which receive the highest share if its total income from this source (26.9 %), whereas the lowest share  (2.7%) is observed in the sub-population receiving the highest share of income (fifth quintile). Regarding the two remaining sources of income, pensions and other sources, the differences in rates are not as wide with the highest quintile receiving 15.3 percent of its income from pensions comparing to the 25.4 percent for the first quintile. The highest share for pensions (30.5%) is received by second quintile. Regarding income coming from other sources, its highest share is received by the fifth quintiles; followed by the first quintile while second and third quintiles receive the same share of 2.9 percent (also shown in Figure 2). 

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