Sources of Household Income Growth in Rich Countries

This chapter seeks to capture what underpins patterns of real income growth versus stagnation for those around and below the middle by distinguishing the different sources of income they receive—in terms of the earnings of different household members, investment income, pensions, and social transfers, as well as the direct taxes and social insurance contributions deducted. The role each of these sources play in household income and its growth over time across countries is explored, bringing out both the key features of incomes around the middle versus towards the top and bottom of the distribution, and which sources have been key to sustained growth for those households.