Living Standards Measurements Study - Serbia 2002 - 2007

Graph 2.2. Cumulative overview of household income structure by deciles of consumption,
in Republic of Serbia, 2007
Cumulative household income structure, in %
100
6.9 3.6
3.2 2.8
2.4 2.5 1.9
90
1.4
0.9
0.8
10.3 9.4 8.9
12.9
8.1 7.7
6.8 7.3
80
5.5 4.7
7.1
8.3
8.2 9.5
7.8 7.1
6.8
5.0 4.0
70
10.7
12.0
19.7 18.5 16.1
31.7 26.5 23.5 23.9
27.2
60.2
60
56.2
30.3
51.8
53.2
50
44.3
45.4 45.8
40
36.8
39.5
29.6
Social insurance benefits
30
Income in kind
20
Income from agriculture
10
Pensions (old-age, family, disability, other)
Income from employment
0
1 2 3 4 5 6 7 8 9 10
Distribution of household by deciles of consumption
Тable 2.4. Average income of households by deciles per expenditure unit (2007)
Average
income in
dinars
Total
1
Decile
2
Decile
3
Decile
4
Decile
5
Decile
6
Decile
7
Decile
8
Decile
9
Decile
10
Decile
43 569 9 425 20 500 24 447 29 979 33 620 39 561 45 362 51 478 63 690 99 329
Benefits from social insurance have a high
share in the 10 percent poorest households, and
account for 6.9 percent of total income, but this
share significantly declines as the household living
standard increases.
The income structure of poor households
corresponds to the income structure of households
within the first expenditure decile (the income from
social insurance benefits is somewhat greater,
amounting to 9.2%)
The average household income in Serbia,
viewed by deciles of expenditure unit shows a
polarization of the first and tenth deciles as
compared to the remaining ones, where the growth
from the second to the sixth decile is mostly
balanced, but between the seventh and the tenth
deciles the average household income grows almost
twice as fast as the nominal amount.
Analyzing the indicator of inequality 9/1
decile 2 , we can conclude that income inequality is
considerable (6,7). If we compare it with the
indicator of inequality set out in the HBS 2006, the
results show a mild growth in income inequality
(5.4), taking into consideration the methodological
differences between those two surveys.
Graph 2.3 shows the Lorenz Curve for income.
The cumulative distribution of population ranked by
units of the equivalent scale is presented on ’X’
axis, while ’Y’ axis represents a cumulative
distribution of income by units of the equivalent
scale. If the Lorenz Curve coincided with the
imaginary diagonal of a square, this would mean
that all members of population would have equal
income and that income inequality is zero. If only
one man possessed everything, the Lorenz Curve
would have a zero value, on ’Y’ axis for all cases on
34 Living Standards Measurements Study - Serbia 2002 - 2007