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Monthly or yearly income?

The income on dollar street. Are you sure this is monthly income and not yearly?

The information button for Latvia states:
In this household each adult can consume goods and services worth about 11381 US dollars each month. This consumption includes the things they buy as well as the things they produce for themselves (if any). The amount is based on the incomes reported by the family.

Shouldnt this be yearly income?
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  • Hi Koen,

    Thanks for your question!

    The income shown in Dollar Street is indeed the monthly income, not yearly. Our method for calculating the income of each family tries to measure consumption rather than salary or income, although the data from the families does not always allow this. This means that if a family grow all the rice they eat each month, then the value of this rice will be included in the total consumption of the home. The "dollars per month" assigned to each home refer to the consumption available to each adult in the family. This means that we take the total consumption and divide it with something called “adult equivalents”, accounting for the fact that young children consume less. Lastly, we measure the value of the consumption in US dollars. Since the cost of living can vary a lot between countries, we use dollars adjusted for purchasing power parity (PPP).

    You can find a more detailed explanation about this method in this folder: https://drive.google.com/drive/folder...

    Kind regards,
    Fernanda Drumond / Gapminder
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