Recommended by the EU, this indicator provides information on the median level and the differences in financial resources between the various population groups. Low income has an impact on housing conditions, health, education, material deprivation, social participation, etc. Equivalised disposable income enables comparison of financial resources with regard to the income of people living in households of different sizes.
During the period from 2014 to 2017, the annual median equivalised disposable income of the resident population aged 16 and over did not change significantly in the two population groups observed, but the differences observed between the groups since 2014 were maintained.
In each major region, people with no migration background had an annual median equivalised disposable income that was greater than that of persons with a migration background. The difference was statistically significant in all major regions. In Ticino, the median equivalised annual disposable income was the lowest, regardless of people’s migration status.
Annual equivalised disposable income is calculated from the disposable income of each household divided by the number of persons it comprises. Disposable income is calculated by deducting the compulsory expenditure from annual gross income (i.e. social security contributions, taxes, basic health insurance premiums, alimony paid and other maintenance payments paid to other households). In order to take into account economies of scale (a family of four persons does not have to spend four times as much as a single person to ensure the same standard of living), a weight of 1 is assigned to the oldest person in the household, a weight of 0.5 to all other persons aged 14 and above and a weight of 0.3 to each child aged under 14 (modified OECD scale). This means that the equivalised disposable income is an indicator of the quality of life in monetary terms that makes it possible to compare the situation of people living in different types of household. For households comprised of several adults with a different migration status, the same value is entered for persons with a migration background and for those without.
The median divides the total of the values observed (and ranked according to size) into two equal halves: one half represents the 50% below the median, the other the 50% above it. Deciles are values that divide all observations, ranked by size, into ten equal parts: 10% of observations lie below the 1st decile, 10% are above the 9th decile.
Following changes to the survey framework and improvements in the weighting model, results from 2014 on can no longer be directly compared with those from previous years (series break).