Understanding Correctly the Concept of Household Disposable Income in China

In its efforts of integrating urban and rural household surveys in 2013, the National Bureau of Statistics（NBS） modified the definition, coverage, basic classifications and methods of calculation for indicators on the net income of rural households used in the rural household survey, and on the disposable income of urban households used in the urban household survey, so as to ensure the consistency of income indicators in both rural and urban household surveys. In 2016, NBS issued National Economic Accounting System of China 2016 by systematically revising the National Economic Accounting System of China 2002, introducing a series of changes in the definition, coverage and methods of calculation for household disposable income indicators used in the flow-of-funds accounting. This paper presents detailed description on the basic concepts, income sources and calculation methods of household disposable income which are used respectively in the revised flow-of-funds accounting and in the integrated household survey, and an in-depth discussion on the differences in the basic uses, coverage, data sources and data interpretation. Readers and data users can benefit from this paper in accurate understanding and correct use of these two sets of household disposable income indicators.