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National Accounts at a Glance 2013

Access the complete publication at: http://dx.doi.org/10.1787/na_glance-2013-en

National income

Please cite this chapter as:
OECD (2013), “National income”, in National Accounts at a Glance 2013, OECD Publishing. http://dx.doi.org/10.1787/na_glance-2013-6-en

This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

INCOME

4. National income
While per capita gross domestic product is the indicator most commonly used to compare income levels, two other measures are preferred, at least in theory, by many analysts. These are per capita Gross National Income (GNI) and Net National Income (NNI). an imputation, and, since there is no actual transaction, it is necessary to impute an outflow of the same amount. The imputed outflow is treated as a financial transaction (a reinvestment of earnings abroad) and not as an outflow of property income. Countries with large stocks of outward foreign direct investment may be shown as having large receipts of property income from abroad and therefore high GNI even though much of the property income may never actually be returned to the country but instead added to foreign direct investment.

Definition
GNI is defined as GDP plus net receipts from abroad of wages and salaries and of property income plus net taxes and subsidies receivable from abroad. NNI is equal to GNI net of depreciation. Wages and salaries from abroad are those that are earned by residents who essentially live and consume inside the economic territory but work abroad (this happens in border areas on a regular basis) or for persons that live and work abroad for only short periods (seasonal workers) and whose centre of economic interest remains in their home country. Guest-workers and other migrant workers who live abroad for twelve months or more are considered to be resident in the country where they are working. Such persons may send part of their earnings to relatives at home, but these remittances are treated as transfers between resident and non-resident households and are recorded in national disposable income (Section 6) but not national income. Property income from abroad includes interest, dividends and all or part of the retained earnings of foreign enterprises owned fully or in part by residents. In most countries, net receipts of property income account for most of the difference between GDP and GNI.

Comparability
Comparability is good but there are practical difficulties in the measurement both of international flows of wages and salaries and property income and of depreciation. It is for that reason that GDP per capita is the most widely used indicator of income or welfare, even though it is theoretically inferior, in that context, to either GNI or NNI.

Source
• OECD (2012), National Accounts of OECD Countries, OECD Publishing, http://dx.doi.org/10.1787/2221433x.

Online database
• OECD (2012), “Aggregate National Accounts: Disposable income and net lending/borrowing”, OECD National Accounts Statistics (database), http://dx.doi.org/10.1787/data-00002-en.

Further reading
• Lequiller, F. and D. Blades (2007), Understanding National Accounts, OECD Publishing, http://dx.doi.org/10.1787/9789264027657-en. • OECD (2009), Handbook on Deriving Capital Measures of Intellectual Property Products, OECD Publishing, http://dx.doi.org/10.1787/9789264079205-en. • OECD (2000), System of National Accounts, 1993 – Glossary, OECD Publishing, http://dx.doi.org/10.1787/9789264180871-en. • UN, OECD, IMF, World Bank and Eurostat (eds.) (1993 and 2008), System of National Accounts, United Nations, Geneva, http://unstats.un.org/unsd/nationalaccount/sna.asp.

Note that retained earnings of foreign enterprises owned by residents may not actually return to the residents concerned, and, in some countries, there are restrictions on the repatriation of profits. Receipt of retained earnings is

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NATIONAL ACCOUNTS AT A GLANCE 2013 © OECD 2013

INCOME
4. National income
Table 4.1. Net national income per capita, OECD = 100
Based on current PPPs
Australia Austria Belgium Canada Chile Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel1 Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States Euro area OECD-Total 1998 107 114 110 111 41 e 59 113 38 97 106 106 77 e 42 125 99 92 105 103 e 61 176 41 e 112 80 119 42 69 43 68 85 110 137 .. 109 148 100 100 1999 109 113 110 113 39 e 58 112 38 98 106 106 76 e 42 123 99 89 104 101 e 66 189 41 e 117 81 126 43 70 41 70 85 113 135 .. 107 150 100 100 2000 107 113 114 114 38 e 57 111 39 101 107 102 77 e 43 116 104 90 103 99 e 69 187 42 e 121 79 145 43 69 41 69 87 114 135 .. 108 149 99 100 2001 109 110 113 113 39 e 59 111 41 103 109 103 81 e 48 118 105 89 106 98 72 186 41 e 121 82 147 43 69 44 70 89 111 129 .. 112 148 101 100 2002 110 113 116 112 38 e 60 113 45 104 109 103 85 e 52 122 108 87 102 98 76 182 42 e 123 83 142 44 70 46 73 92 113 129 .. 115 146 101 100 2003 113 113 113 114 38 e 62 109 48 100 105 104 85 e 53 115 114 79 100 98 76 174 42 118 83 144 44 69 44 75 92 117 131 .. 116 147 100 100 2004 110 112 109 114 38 e 63 111 50 104 103 105 85 e 53 116 114 80 95 97 77 201 42 119 81 151 45 67 46 76 90 116 128 .. 117 147 99 100 2005 109 109 106 116 39 e 64 110 54 101 102 104 81 53 115 114 77 93 97 77 198 43 117 78 163 46 68 49 76 90 112 129 .. 116 148 98 100 2006 107 111 105 115 38 e 65 113 57 103 101 107 83 53 106 119 75 93 95 76 185 45 122 78 172 46 67 52 77 93 115 133 .. 114 146 99 100 2007 108 111 105 115 39 e 67 112 61 107 103 108 82 52 106 120 77 94 96 79 205 45 124 78 169 49 67 58 79 93 121 128 .. 113 143 100 100 2008 107 115 107 114 42 e 69 115 62 110 103 109 85 55 86 110 75 94 93 80 193 47 122 78 182 53 67 64 82 93 122 123 .. 113 141 100 100 2009 114 115 107 113 44 e 68 114 57 107 105 111 87 57 83 103 77 95 91 83 150 45 121 84 167 58 69 64 79 94 117 138 .. 111 140 102 100 2010 112 115 110 112 45 e 64 118 55 106 103 112 77 55 80 102 78 90 92 86 163 46 120 82 e 170 58 68 64 76 90 119 146 .. 109 141 100 100 2011 112 e 117 108 113 e 47 e 64 117 58 105 102 113 68 56 83 99 80 e 89 90 e 87 178 47 e 122 81 e 179 60 e 65 63 76 87 122 143 .. 106 142 99 100

1. Information on data for Israel: http://dx.doi.org/10.1787/888932315602.

1 2 http://dx.doi.org/10.1787/888932762292

Figure 4.1. Net national income per capita, OECD = 100
Current PPPs, 2011

200 180 160 140 120 100 80 60 40 20 0

Note: Information on data for Israel: http://dx.doi.org/10.1787/888932315602.

1 2 http://dx.doi.org/10.1787/888932761589

NATIONAL ACCOUNTS AT A GLANCE 2013 © OECD 2013

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