Living Standards Measurements Study - Serbia 2002 - 2007

In the five-year period, the structure of average
household income changed. These changes indicate
a higher share of income from employment and
pensions by some 5 percent, while the share of the
in-kind component of income and the income from
agriculture has reduced. During this period, the data
showed a slightly increased share in social
insurance benefits.
income structure for the 10 percent poorest
households significantly differs from the income
structure of an average household. The basic
characteristics of the income earned by the poorest are
that, beside the income (earnings) from employment,
the basic sources of available funds for such
households are pensions and income in kind. The
income (earnings) from employment constitutes only
29.6 percent of total income of the poorest
households. In the 10 percent poorest households, the
largest contribution to total household income comes
from social insurance benefits, which account for 6.9
percent.
The income structure for households in the
lowest decile in urban and other areas differs by the
amount of pensions, income from agriculture and
income in kind. The contribution of pensions
accounts for 38.3 percent in the households in urban
areas, while such contribution in other households is
24.4 percent. Income from agriculture is a
significant income source for rural (other)
households and participates with 15.0 percent in the
total income structure. The share of income in kind
is almost three times higher in the households in
other areas, and accounts for 17.0 percent.
Analyzing the aggregate income structure for
the households by deciles of expenditure per
expenditure unit, we can identify a positive
correlation between expenditure growth and the
share of the income from employment in total
household income. The share of income from
employment ranges from 29.6 percent, which is the
percentage recorded in the lowest decile
households, to 60.2 percent, as recorded for the
highest decile households.
The income structure of the households with a
low standard of living is characterized by a high
share of income from pensions. In 40 percent
households with the lowest expenditure rate, almost
1/3 of income is made up from pensions, while in
the highest decile households only 12.0 percent of
income is from pensions.
The high share of the income from agriculture
and income in kind in total income is also
characteristic for the lowest decile households (23.6
percent). This share is almost 2.5 times larger than
in the households located in the highest decile of
expenditure (8.7 percent).
Graph 2.1. Household Income Structure
8,6 8,7 8,5 7,0 7,8 6,5
4,9
7,4 3,6
1,6
1,9
13,3
12,9 2,4 17,0
6,8
7,8
2,1
10,7
23,2 14,9
15,0
6,9
20,9
2,5
38,3 6,4
17,3
30,3
26,4
Imputed rent and
amort./deprec. of durable goods
Other income
Income in kind
Income from agriculture
Cash receipts from abroad
49,4
56,4
38,2
29,6
37,2
25,7
Social insurance benefits
Pensions (old-age, family,
disability, other)
Total
Urban
area
Other
areas
Total -
decile 1
Urban
area -
decile 1
Other
areas -
decile 1
Income from employment
Income and expenditure
33