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In economics, personal income refers to the total earnings of an individual from various sources such as wages, investment ventures, and other sources of income. It encompasses all the products and money received by an individual.
Personal income can be defined in different ways:
- It refers to the income received by individuals or households in a country from all sources during a specific year.[1][verification needed]
- It includes earned income or transferred income received by households within the country or even from outside sources.
- It represents the total capital an individual receives from various sources over a certain period or throughout their life.
Personal income encompasses various forms of income beyond just wages. It can include dividends, transfers, pension payments, government benefits, and rental income, among others. Taxes charged to an individual are typically not deducted when calculating personal income.[2] Personal income serves as an indicator of the real well-being of people and their ability to afford products or services before taxes are applied.[3]
- ^ Wataru Souma (2002). "Physics of Personal Income". arXiv:cond-mat/0202388.
- ^ "Личные доходы". June 26, 2015.
- ^ Cummins, Robert A. "Personal income and subjective well-being: A review." Journal of Happiness Studies 1.2 (2000): 133-158.