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I REFER to the article, 'Household incomes up but rich-poor gap widens' (ST, Feb 14).
According to the Department of Statistics (DOS) Key Household Income Trends 2007 and 2006, the Average Monthly Income from Work Per Household Member Among Employed Households by Decile, from 1997 to 2007, for the 1st to 10th, 11th to 20th, and 21st to 30th, Deciles, increased from $290 to $310, $470 to $570, and $630 to $790, respectively.
This means that the annualised income growth over the past 10 years was 0.7, 1.9 and 2.3 per cent, respectively, for the bottom three deciles.
So, after adjusting for inflation, there may hardly have been any income growth, for the last 10 years.
Moreover, the trend of declining household size may mean that total household incomes may have increased even less than household incomes per member.
The DOS' 2007 report said that 'the lowest 10% non-retiree households showed the largest increase (12 per cent) in household income per household member in real terms in 2007. This can be attributed to the increase in the number of working persons as well as higher monthly income from work among the income earners".
Does this mean that more members in households may have to work in order to earn enough for their living expenses?
This is perhaps underscored by the Gini coefficient, a measure of income inequality, rising to 0.485 from 0.472. This is one of the biggest increases in the past seven years.
As to the DOS' remarks that government benefits targeting the lower-income, such as the GST offset package offered in last year's Budget, helped to narrow the income gap and if taken into account, the Gini coefficient would come down to 0.46 - as the name implies, GST offsets are for offsetting the GST increase, and should not be construed as having reduced the Gini.
In contrast to 'Employed Households', the Annual Average Household Income from Work Among All Resident Households (Per Household Member), was only $380, $4,680 and $7,750, for the 1st to 10th, 11th to 20th, and 21st to 30th, Deciles, respectively.
This means that the monthly income was only $32, $390 and $646, respectively, for the bottom three deciles.
With 56,900 residents unemployed last year, how many resident households have hardly any income from work?
And how many of these have sufficient non-work sources of cash inflows to meet their living expenses?
Leong Sze Hian
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