Define: Per Capita Income

Business, Legal & Accounting Glossary

Definition: Per Capita Income



Advertisement



Full Definition of Per Capita Income


Per capita income is the average income for each person in a particular group. Most commonly, per capita income is computed for various geographic entities, extending from individual ZIP codes to entire nations. The Bureau of Economic Analysis computes per capital income based on total personal income, which includes items like wages, interest, dividends, and government transfers. Per capita income is an important tool for marketers, who can target their advertising campaigns based on the per capita income of individuals in different localities. Per capita income is also commonly used to compare economic conditions among different nations. While useful as a broad gauge of wealth, per capita income statistics have substantial limitations. First, methods for computing economic statistics vary widely by country, and per capita income numbers reflect those differences. Second, per capita income excludes the informal economy, which can be a sizeable portion of overall economic activity. Third, per capita income is measured in exchange rates that often fluctuate substantially. Finally, per capita income numbers do not indicate the level of income equality among a nation’s citizenry.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/per-capita-income/
Modern Language Association (MLA):
Per Capita Income. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 07, 2020 https://payrollheaven.com/define/per-capita-income/.
Chicago Manual of Style (CMS):
Per Capita Income. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/per-capita-income/ (accessed: April 07, 2020).
American Psychological Association (APA):
Per Capita Income. PayrollHeaven.com. Retrieved April 07, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/per-capita-income/

Definition Sources


Definitions for Per Capita Income are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February, 2020