Per capita cash income is all funds received by a conventional average person over a certain period of time. To determine them, it is necessary to divide the total asset received by all residents of the country by the number of these same residents. The value of the average per capita cash income of a population is the volume of all cash receipts for a certain period (month or year) divided by the country's population.
Since the year consists of 12 months, the average per capita cash income per month is 12 times less than the annual one. The list of cash income includes all types of income: salaries, pensions, benefits and social benefits, profit from commercial activities, annuities, insurance payments, scholarships, earnings from the sale of foreign currency, hidden income.
Distribution of per capita cash income by region
It is known that in Russia there are poor and rich regions. In different areas of the country, the level of per capita cash income varies greatly. They are the highest in Moscow, and the lowest - in areas remote from the center where there is no oil and gas development, industry, agriculture and tourism are poorly developed.
The total incomes of the population of Moscow are calculated in a huge number, which many regions of Russia could envy: 7,930,113,252,600 rubles. And the average per capita cash income of the capital's inhabitants is 54,870 rubles. In a significant part of Muscovites, income is comparable to that of the middle class in developed countries. In many other areas, this indicator is two times lower, and in some even 3-4 times lower.
The reason for this situation is that in the capital there are offices of almost all large companies, as well as federal authorities. The most profitable business segments are located here, and the specifics of managing the country and its economy are such that financial and resource flows from the whole territory of the Russian Federation flock to the capital. As a result, most of the top managers and the highest paid employees are concentrated in Moscow and St. Petersburg - the two largest and most influential cities in Russia.
Large cities in regions where oil, gas and some other important resources are developed are quite rich and relatively prosperous. In addition, settlements with averaged high income are located in areas of cold climate, where the northern coefficients and premiums operate.
The contrast between rich and poor regions is constantly growing. Some regions are developing rapidly and successfully, while others barely maintain the previously achieved levels. All this is reflected in the differences in per capita income.
Official information on monthly earnings is presented on the website of the State Committee for Statistics of the Russian Federation.
What is population income
Many people believe that this is net profit. In economics, the word "income" refers to cash flow, measured in unit time. This includes all cash and other receipts that become the personal property of citizens. Typically, funds come in the form of banknotes, but for rural residents there is a large share of the inflow in the form of natural products: meat, milk, honey, clothing, etc. Sources of primary income are divided into 4 categories: financial capital, production, labor , land and natural resources. Other sources include:
- interest payments in savings banks;
- income associated with the growth of the value of stocks, bonds;
- payments under state social programs (pensions, allowances, scholarships, etc.);
- repayment of loans;
- state insurance payments;
- winnings in lotteries, casinos, show games .;
- payment of compensation to victims;
- shadow income.
Distribution of funds
In addition to differences in the distribution of sources of funds, citizens have different total earnings, that is, an unequal amount of money received by them per unit of time. Revenues can be divided into the following categories:
Nominal - this is direct cash receipts calculated in the amount of the nominal.
Disposable is the amount of money that the recipient has left after paying taxes and other obligatory payments.
Real - this is the amount of goods and services that can be purchased at the expense of disposable income. This indicator most closely reflects the standard of living of the population. For real incomes to remain unchanged, it is necessary that the increase in prices for basic goods and services be covered by a proportional increase in cash receipts.
The entire population can be divided into the poor, the poor (poor), the middle class, the rich and the super-rich (billionaires). In rich countries, a higher standard is set for all these groups than in poor countries. This means that, for example, a person falling into the category of a beggar in one country will not be considered as such in another. Even within the same state, the boundaries of these groups can be located at different levels of material well-being.
How do Russian citizens live?
In 2017, the level of average per capita cash income of the population in the Russian Federation was 31,475 rubles a month, which is approximately 540 dollars. The average salary was 39 085 rubles, and pensions - 13 304 rubles. The total earnings of all residents of the country in 2017 amounted to 55 trillion rubles. (950 billion dollars). Their most common source was labor remuneration (65% of the total), social benefits (20%), income from doing business (8%), property transactions (6%), and other types of sources (2%).
Dynamics of growth in the level of well-being of Russians since 1991
Over the recent history of Russia, the average income of the population has changed quite a lot. In the 90s there was a double fall, reaching the bottom in 1999. It was especially sharp in 1992. At the same time, other indicators of quality of life have worsened. The main source of income was salaries and pension payments. At the same time, salaries were often delayed.
However, some economists are cautious about the statistics of those times. The fact is that then little attention was paid to her. At the same time, many earned money in trade and underground industries, there was a lot of crime. Therefore, the real drop could be slightly less. But in any case, it was significant. It is well known that in the 90s in Russia they lived poorly.
The situation after the 90s
After 1999, there has been an increase in living standards, which (according to the Investorskul website, citing Rosstat), peaked in 2013-2014. This positive process proceeded most rapidly until 2007, after which it sharply slowed down.
The increase in material wealth from 1999 to 2007 amounted to over 90%, and in the period 1999 - 2013 approached 110 - 115%. Then, the population’s earnings began to fall, although even in 2017 they were 2 times higher than in 1999. The data showed an almost threefold increase from 1999 to 2013, and the beginning of their decline is attributed to 2014.
It should be borne in mind that over the period from 2000 to 2018, the stratification in the distribution of the population by the amount of average per capita income sharply increased. In 1999, they were very low for almost everyone. Despite the impressive growth since the 90s, now a significant part of the country's population is below the poverty line. The largest drop in income in recent years, according to the Federal State Statistics Service, was observed in 2016 and amounted to minus 5.6%. In 2017, it slowed down.
Most likely, the decline will be recorded in 2018, but it will also be small. Since the current recession is accompanied by an increase in the number of rich and super-rich people (and their condition), it is logical to assume that poverty in the country is also progressing.
Over the past 5 years, welfare has declined, on average, by 15–20%.
Per capita cash income - distribution by type of activity
In Russia, the differentiation of wages by different types of labor economic activity is very pronounced. As of 2016, with the exception of show business stars, the highest earnings are in the extraction and processing of fuel resources. So, in the field of oil production, the worker’s income is about 70 thousand rubles. The production of coke and petroleum products is paid in the amount of 70.3 thousand rubles. The extraction of other types of minerals that are not related to fuel and energy is paid in the amount of 46.6 thousand rubles.
Financial activities give the highest average income equal to 90,170 rubles. Chemical workers have quite good earnings - 42.6 thousand rubles. Perhaps this is due to the harmfulness of this production to human health.
Real estate and rental workers earn an average of 40.2 thousand rubles.
Developments in the field of high and advanced technologies provide a fairly high income. On average, it is 53,770 rubles.
The lowest average salaries for workers in the textile and clothing industry are 15.4 thousand rubles. Shoe manufacturers receive relatively little - 18.76 thousand rubles. In agriculture and forestry, the average salary is 18.2 thousand rubles. Work with wood, the production of wood products gives 20.8 thousand rubles.
Not so much earn those who work in hotels and restaurants. Their average monthly income is 20.9 thousand rubles. Kindergarten teachers and primary school teachers receive 21.1 - 21.2 thousand rubles. per month. Higher vocational education workers earn the most in education - 38,245 rubles.
This list did not include many other professions. For example, the work of officials, deputies, space workers, lawyers is paid quite high, and postmen, cleaners, sellers earn very little.
Of course, all this is statistical data. Indeed, often the level of cash payments to the population is regulated by the established minimum wage, which is significantly lower than these figures. Salaries can vary greatly in different regions. Typically, salary statistics include only large organizations where salaries are higher. Small cities and towns in rural areas, where incomes are lower, are not included in such calculations. It should also be taken into account that directors' salaries are much higher than ordinary employees.
What affects the decline in welfare
Unlike nominal incomes, real incomes are affected by inflation, the level of taxes, the cost of utilities and other conditions.
- Inflation is a very important factor that is almost impossible to prevent, but without which it is impossible to analyze the dynamics of the real standard of living of the population. The fall in citizens' income in recent years has been connected precisely with it. With inflation, money depreciates. If the growth of salaries and pensions does not keep up with her, then the level of welfare falls. Outpacing wage growth yields the opposite result.
- Another factor affecting the dynamics of income is the level of taxes. With an increase in their rates, real wages fall, and with a decrease, they increase.
- Utility payments and other payments. They also do not contribute to the growth of income, since a person is forced to spend part of his salary on payment of various services.
What affects the growth of real income
The decrease in cash receipts is due to the action of immutable factors, which we cannot change without violating the law. As for the possibilities of increasing them, then everything is much more complicated. In addition to entrepreneurship and business skills, a person must have sufficient starting capital. Otherwise, he will expose himself and his property to too much risk. It turns out that those who have a low income have very few opportunities to increase it. Those who have a lot of money can easily increase their amount without making special efforts, for example, by means of a profitable investment of capital.
The presence of a person "excess" real estate, transport, land, free financial resources and other assets gives him additional chances to make a profit. In the West and in other countries, new technologies are becoming a promising area for investment. Orientation of the business to oil and coal projects will soon become a loss-making business, because the demand for these resources will begin to decline in the next decade.
Many companies and wealthy citizens prefer to invest in infrastructure for environmentally friendly transport, in renewable energy sources and other similar technologies. Even buying a home solar power station now pays off pretty quickly. All this will make it possible to raise the average per capita cash income of the population per month. In our country, such a practice is not yet widespread.
Conclusion
The per capita income of the population is a statistical value that does not reflect the situation with the standard of living in the whole country. However, it is relevant for statistics. The calculation of per capita cash income is done per month or per year. This amount includes all financial receipts that become the property of a particular person. The per capita cash income per month in different regions of the country is very different. Accordingly, the standard of living is also different everywhere.