Concepts and definitions
- Debts charged on a source of income
Debts charged on a source of income include debts attributable to farming and forestry as well as to trade and business activities.
- Decile groups or income deciles
In most statistics the distribution of a variable, such as income or property, in the population is described by means of deciles or income deciles. Sometimes also fifths or quintiles are used, formed in the corresponding way as deciles.
An example of how deciles are formed:
Nowadays the decile groups used in the income distribution statistics are formed by dividing first the household's income by the household's consumption units (so-called equivalent income). Each household member will have the same equivalent income. The persons are then arranged in the order of their income and divided into ten groups of equal size. Each decile then has 10 per cent of the population. The first decile contains the lowest income tenth and last the highest income one. The income shares of decile groups show how large share of the total sum of the income in question the decile groups get.
- Disposable money income
The household's disposable money income is a corresponding concept to the household's disposable income but it does not include imputed income items (e.g. imputed income received from an owner-occupied dwelling in own use). The concept includes benefits in kind related to employment relationships.
The household's disposable money income = household members' total wages and salaries + entrepreneurial income + property income (excl. imputed income items) + current transfers received - current transfers paid.
- Gross income
The household's gross income is obtained when current transfers received by the household are added to the household's factor income (wages and salaries, entrepreneurial and property income), but paid current transfers (e.g. taxes and social security contributions) are not deducted.
- Household-dwelling unit
A household-dwelling unit consists of the permanent occupants of a dwelling. Persons who according to the Population Information System of the Population Register Centre are institutionalised, or are homeless, or are abroad, or are registered as unknown, do not constitute household-dwelling units. Additionally, persons living in buildings classified as residential homes do not form household-dwelling units if their living quarters do not meet the definition of a dwelling. In the 1980 census household-dwelling units were also formed of these persons.
The concept of household-dwelling unit was adopted in the 1980 census. In earlier years the concept of household was used. A household consisted of family members and other persons living together who made common provision for food. A subtenant providing for his or her own food constituted a separate household. Since 1980 subtenants have been classified in the same household-dwelling units with other occupants.
- Housing loan
A housing loan is debt incurred by a taxpayer in acquiring or renovating his/her own or family's permanent dwelling.
- Liabilities (Debts)
Liabilities (Debts) describe the amount of debt per person in a household-dwelling unit at the end of the year (31.12.) Included are loans and credits granted by credit institutions and financial corporations, financial services offices, as well as other common lenders. The debts comprise housing loans and student loans guaranteed by the Finnish Government or the Åland Provincial Government. The debts also comprise loans granted by credit institutions and financial corporations, as well as loans exceeding EUR 1,700, granted by lenders other than credit institutions and financial corporations, the purpose of use of which is other than the aforementioned housing loan or student loan.
The debts are grouped according to their purpose of use as follows:
1. Housing loans
2. Student loans
3. Debts charged on a source of income
4. Loans taken up for the purpose of acquiring income
5. Other liabilities- Loans taken up for the purpose of acquiring income
Loans taken up for the purpose of acquiring income are debts incurred in gaining taxable income. The income may be regular income, such as rental, interest or dividend income. The income may also be based on capital appreciation, e.g. if the taxpayer acquires a commercial property or a plot of land for investment purposes.
- Other liabilities
Other liabilities (debts) include, for example, loans raised to acquire a free-time residence or a car and other consumer credits. The data include consumer credits and other debts provided they are loans granted by credit institutions and financial corporations or loans exceeding EUR 1,700 granted by other common lenders.
- Reference person
The household member with the highest gross income is selected as the reference person in total statistics on income distribution. Income is determined from register data.
- Student loan
A student loan refers to a loan guaranteed by the Finnish Government or the Åland Provincial Government.
Official Statistics of Finland (OSF):
Indebtedness [e-publication].
Helsinki: Statistics Finland [referred: 28.5.2012].
Access method: http://www.tilastokeskus.fi/til/velk/kas_en.html.
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