Variable HHIncome: Annual household income

Literal Question

Derived variable

Descriptive Text

Annual household income is derived from question P-52 (Income category), which gives the income of each individual. (See 'Monthly income' in the 'Person' section of the Metadata.) The annual income for households was calculated by adding together the individual incomes of all members of the household. The result for each household was then reallocated into the relevant income category. In cases where no response was given (Category 13) for any member of the household, the household income for the entire household was set to Category 13, i.e. 'Response not given'. Because individual income was recorded in intervals rather than exact amounts, a fixed amount had to be allocated to each range in order to do the calculations. These amounts were arrived at as follows: Persons claiming that they had no income were not adjusted; for the first class among those with incomes, the amount is R3 200 (i.e. two-thirds of the top cut-off point of this bracket); for the second class, the amount is the midpoint of the class interval; for the last class, the amount is R4 915 200; and for all other classes, the amount is calculated as the logarithmic mean of the top and bottom of the given interval (see metadata).  

Users are warned to use this variable with caution and be aware of its limitations. Household income has been derived from personal incomes collected in ranges. For each range, an assumption had to be made as to the appropriate point to use for the calculations. This has made the results tentative. Household income does not provide a measure of total income and its accuracy in representing relative income is unknown. Direct comparisons with other data sets cannot be made. The main reason for releasing this variable in the data is to show patterns and trends, rather than precise estimates.

Values	Categories	N	NW
1	No income	20103	1,021,810.1	8.2%
2	R1-R4 800	12638	623,910.3	5.0%
3	R4 801-R9 600	23388	1,119,635.1	9.0%
4	R9 601-R19 200	49754	2,367,859.6	18.9%
5	R19 201-R38 400	49091	2,385,754.0	19.1%
6	R38 401-R76 800	28383	1,430,061.8	11.4%
7	R76 801-R153 600	17454	952,284.9	7.6%
8	R153 601-R307 200	11161	664,828.8	5.3%
9	R307 201-R614 400	5519	354,902.3	2.8%
10	R614 401-R1 228 800	1746	117,718.6	0.9%
11	R1 228 801-R2 457 600	652	40,587.4	0.3%
12	R2 457 601 or more	496	29,031.9	0.2%
13	Response not given	26233	1,392,224.3	11.1%

Summary Statistics

Valid cases	246618	1.2500608992E7
Missing cases	0	0.0
Minimum	1.0
Maximum	13.0
This variable is numeric

Universe

All households

Notes

This is a derived variable indicating the annual income of households according to specific income categories.

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