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Income distribution statistics: documentation of statistics
The documentation of the statistics describes how the statistics were compiled and what methods were used in the compilation. The data help interpret the figures of the statistics and evaluate their reliability and comparability. The quality report is based on the EU's SIMS model. The documentation also contains change releases describing changes in the statistics and possible specifying methodological descriptions.
If you are looking for statistical figures for these statistics, go to the statistics page: Income distribution statistics
Quality report
Data description (SIMS 3.1)
Income distribution statistics describe distribution of households' annual income, income differentials and low income between population groups. Statistics describe disposable income and its formation taking into account taxation and income transfers. Data are published once a year.
Sector coverage (SIMS 3.3)
The register-based total data of the income distribution statistics cover household-dwelling units and the dwelling population belonging to household-dwelling units in Finland.
The sample data of the income distribution statistics cover private households and the household population in Finland.
Statistical unit (SIMS 3.5)
The statistical units of the income distribution statistics in the register-based total data are a household-dwelling unit and a person.
The statistical units of the income distribution statistics in the sample data are a household and a person.
The definition of a household differs between the total data and sample data of the income distribution statistics. In the total data, the household is a household-dwelling unit. A household-dwelling unit is formed of persons living permanently in the same dwelling or at the same address. The household-dwelling unit is used in Statistics Finland’s all register-based statistics.
In the sample data of the income distribution statistics, the household is defined based on shared housekeeping with the help of data collected with interviews. A household is formed of all those persons who live together and have meals together or otherwise use their income together.
Statistical population (SIMS 3.6)
The population of the total data of the income distribution statistics is the dwelling population, which consists of all persons belonging to a household-dwelling unit living permanently in a dwelling at the end of the statistical reference year (31 December). Conscripts are regarded as part of the population in these statistics.
Good two per cent of the entire population are excluded from the statistics. They include persons without a postal address, the institutional population (e.g. long-term residents of old people's homes, care institutions, prisons or hospitals), persons permanently resident abroad and persons temporarily resident in Finland.
The target population of the sample data of the income distribution statistics comprises private households permanently resident in Finland and their members, that is, the household population in Finland at the end of the statistical reference year (31 December). The population comprises all private households and their members who resided permanently in Finland at the end of the income reference year (31 December, data collection year of sample data - 1).
Reference area (SIMS 3.7)
Regional statistical data are published from the total data on the municipal level and using municipality-based regional divisions (municipality, region, sub-regional unit, wellbeing services county). The total data of the income distribution statistics can also be produced with other regional divisions.
Regional data on the sample data of the income distribution statistics are only published on the level of major regions (NUTS2) due to the limitations in sample size.
Time coverage (SIMS 3.8)
The total data of the income distribution statistics are available yearly starting from 1995.
The sample data of the income distribution statistics are available yearly from 1986 onwards. The data for 1966, 1971, 1976 and 1981 are based on the Household Budget Survey.
Base period (SIMS 3.9)
The base year for the real values of monetary data in the income distribution statistics is the latest statistical reference year.
Unit of measure (SIMS 4)
The measurement units of the income distribution statistics are euros, percentages and numbers.
Reference period (SIMS 5)
The income data of the income distribution statistics are annual income (calendar year). The population and household-dwelling unit data are from the end of the statistical reference year (31 December). Some of the data describing the activity are determined based on data for the whole year (e.g. socio-economic group in sample data).
Classifications (SIMS 3.2)
The classifications used in the total data on income distribution are:
- gender
- age
- year of birth
- level of education
- origin
- income fractile group
- income structure
- main source of income
- dependence on basic social security
- area (municipality, sub-regional unit region, wellbeing services county).
The classifications used in the sample data are:
- gender
- age
- stage in life
- socio-economic group
- type of household
- income quintile group
- income decile group
- at risk of poverty
- form of tenure of dwelling
- area (NUTS2 or classification of major regions).
Concepts and definitions (SIMS 3.4)
Consumption unit
Income and consumption expenditure calculated per consumption unit can be used to compare households of different sizes and structures with each other. There are several different ways of calculating consumption units. From 2002, the income distribution statistics and the Household Budget Survey have used the OECD's adjusted consumption unit scale recommended by Eurostat, the Statistical Office of the European Communities, where - the first adult of the household receives the weight 1 - other over 13-year-olds receive the weight 0.5 - children receive the weight 0.3 (0 to 13-year-olds). The selected consumption unit scale has a significant effect on income levels and on placement of different population groups in the income distribution.
Current transfers paid
The household's current transfers paid are mainly formed of direct taxes and social security contributions. In addition, current transfers paid include compulsory pension contributions and unemployment insurance premiums, as well as child maintenance support paid. Taxes paid do not include church tax, voluntary individual insurance premiums (from 2000 regarded as savings in the income distribution statistics) and indirect taxes. Current transfers paid are based on register data, except for withholding taxes paid on interest income. From 2011 onwards, current transfers paid also include part of current transfers between households (e.g. bills paid for other households and money given for studying).
Current transfers received
Current transfers received by households and persons are formed of earnings-related and national pensions and other social security benefits, social allowances and other current transfers received. Other social security benefits are such as rehabilitation allowances, daily and parental allowances, compensations of statutory accident insurance and earnings-related unemployment allowance. Social allowances are such as child benefits, support for care of small children, conscript's allowance, social assistance, general housing allowance, study and research grants, basic unemployment allowance and labour market allowance. Other current transfers received are current transfers received between households.
Disposable income
In the income distribution statistics and in the Household Budget Survey, households' disposable income included all salaries and wages, entrepreneurial income and property income (including imputed rent from owner-occupied dwellings and taxable sales profits from property), benefits in kind and current transfers received, from which sum, current transfers paid were deducted. The formation of disposable income can be described as follows: + Wages and salaries + Entrepreneurial income + Property income (incl. imputed rent from owner-occupied dwellings and sales profits) ----------------------------------------------- = Factor income + Current transfers received (incl. imputed rent from a rental dwelling from another household) --------------------------------------------- = Gross income – Current transfers paid -------------------------------------------- = Disposable income Before the statistical reference year 2011, the income distribution statistics primarily utilised the concept of disposable income. The imputed rent of owner-occupiers was regarded as factor income (property income) and imputed rent for a dwelling rented from another household as current transfers received in the income distribution statistics. Imputed rent is still formed in the income distribution statistics but from the statistical reference year 2011, it is treated as a separate income item (see "Imputed rent"). Similarly, taxable realised capital gains or sales profits are treated as a memorandum item according to international recommendations. When social current transfers in kind are added to income, adjusted disposable income is obtained. This concept is not formed in the income distribution statistics. Wages and salaries include income paid for households as pay - either in money or benefit in kind. Income from incentive stock options is included in the income concept in benefits in kind and thus in wages and salaries. Entrepreneurial income includes income from agriculture and forestry, business activity and business group and copyright fees. Entrepreneurial income in agriculture also contains various subsidies and compensations such as agricultural subsidies, European Union agricultural aid and compensation for harvest losses. Property income is rental, interest and dividend income received by households, imputed net rent from an owner-occupied dwelling, taxable capital gain and pensions based on private insurance and other income. Current transfers received comprise earnings-related pensions and national pensions and other social security benefits, social assistance and other current transfers received. Current transfers paid comprise direct taxes and social security contributions. In addition, current transfers paid comprise compulsory pension and unemployment insurance premiums and in the income distribution statistics also child maintenance support paid. The key income distribution statistics concept, disposable income, is arrived at when current transfers paid are deducted from gross income. The concept of disposable income in the Household Budget Survey is based on register data, and does not, differing from the income distribution statistics, include wages and salaries subject withholding tax and tax-free interest income and current transfers between several households (e.g. child maintenance support).
Disposable money income
Households' disposable money income includes monetary income items and benefits in kind connected to employment relationships. Money income does not include imputed income items, of which the main one is imputed rent. The formation of disposable money income can be described as follows: + wages and salaries + entrepreneurial income + property income (without imputed rent) ----------------------------------------------- = factor income + current transfers received (without imputed rent) --------------------------------------------- = gross money income – current transfers paid -------------------------------------------- = disposable money income When current transfers paid are deducted from gross money income, the remaining income is the household's disposable money income. The primary income concept used in the income distribution statistics is household's disposable money income according to international recommendations, in which case sales profits and taxes paid on them do not belong to the scope of the income concept. Following international recommendations, they are treated as a memorandum item outside the income concept. The concept of disposable money income in the total statistics on income distribution differs from disposable money income in the income distribution statistics. As a conceptual difference, the income concept of the total statistics on income distribution includes taxable realised capital gains. For practical reasons, the total statistics on income distribution do not include the majority of interest income and current transfers received and paid between households (e.g. child maintenance support). Real property tax is not deducted in the total statistics on income distribution either.
Entrepreneurial income
Entrepreneurial income includes income from agriculture and forestry, business activity and business group and copyright fees. Entrepreneurial income in agriculture also contains various subsidies and compensations such as agricultural subsidies, European Union agricultural aid and compensation for harvest losses. Income from agriculture does not include imputed income received from products taken into own use.
Equivalent income
Equivalent income is an income concept by which incomes of households of different types are made comparable by taking account of shared consumption benefits. Equivalent income = the household's income divided by the number of consumption units in the household. From 2002 the income distribution statistics have used the OECD's adjusted consumption unit scale recommended by Eurostat, the Statistical Office of the European Communities, where - the first adult of the household receives the weight 1 - other over 13-year-olds receive the weight 0.5 - children receive the weight 0.3 (0 to 13-year-olds are defined as children) The assumption is that income is evenly distributed inside the household between all household members in relation to the above-mentioned consumption need.
Factor income
In the income distribution statistics, factor income is monetary compensations received by households for participation in the production activity as wages and salaries, entrepreneurial income and property income.
GINI co-efficient
The Gini coefficient is the most common indicator describing income differences. The higher value the Gini coefficient gets, the more unequally is income distributed. The biggest possible value for the Gini coefficient is one. Then the highest earning income recipient receives all the income. The smallest Gini coefficient value is 0, when the income of all income recipients is equal. In the income distribution statistics, Gini coefficients are presented as percentages (multiplied by one hundred). The Gini coefficient describes relative income differences. The Gini coefficient does not change if the incomes of all income earners change by the same percentage.
Gross income
The household's gross income is obtained when current transfers received by the household are added to the household's factor income (wages and salaries, entrepreneurial and property income), but paid current transfers (e.g. taxes and social security contributions) are not deducted.
Household
A household is formed of all those persons who live together and have meals together or otherwise use their income together. The concept of household is only used in interview surveys. Excluded from the household population are those living permanently abroad and the institutional population (such as long-term residents of old-age homes, care institutions, prisons or hospitals). The corresponding register-based information is household-dwelling unit. A household-dwelling unit is formed of persons living permanently in the same dwelling or address. More than one household may belong to the same household-dwelling unit. The concept of household-dwelling unit is used in register-based statistics in place of the household concept.
Housing expenditure
Housing expenditure includes operating expenditure, interests on and amortisations of housing loans, capital charges, and real estate tax for the household's actual dwelling.
Income deciles
The income distribution is described by means of tenths or deciles. Sometimes fifths or quintiles are also used, formed in the corresponding way as deciles. An example of how income deciles are formed: Nowadays the decile groups or income deciles used in the income distribution statistics are formed by dividing first the household's income by the household's consumption units (so-called equivalent income). Each household member will have the same equivalent income. The persons are then arranged in the order of their income and divided into ten groups of equal size. Each income decile then has 10 per cent of the population. The first income decile contains the lowest income tenth and the last one the highest income tenth. The income shares of income deciles show how large share of the total sum of the income in question each decile gets.
Income share of housing costs
Housing costs include operating expenditure, interests on housing loans and real estate tax paid by the household for its actual dwelling. Depending on its tenure status, the dwelling's operating expenditure comprises maintenance charges, rents, water and waste charges, separate energy expenses, costs of maintenance repairs, and other operating and maintenance expenditure of the dwelling. The income share of housing costs (in gross) indicates the share of housing costs in the household's disposable income. In the income share of housing costs in net, housing costs and disposable money income do not include housing benefits received by the household.
Long-term low-income
Long-term low-income earners are those who have belonged to low-income households in two years within the three previous years in addition to the statistical year (see the definition of low income). The definition is based on the recommendations of Eurostat, the Statistical Office of the European Communities.
Low income
Low-income earners (persons at risk of poverty) are considered those whose household's disposable money income per consumption unit (so-called equivalent income) is lower than 60 per cent of the equivalent median money income of all households. The proportion of the population falling below this income limit is called the low income rate (at-risk-of-poverty-rate). The euro-denominated limit for low income varies by year. The definition is based on the recommendations of Eurostat, the Statistical Office of the European Communities. There is no official national definition for low income or poverty line in Finland. From the statistical reference year 2011 onwards, the income distribution statistics started to use the money income concept meeting international recommendations for statistics on low income earning (poverty risk). In reports published before that, a wider income concept was used, that is, households' disposable equivalent income, when income included so-called imputed rent and sales profits.
Money income
Money income is obtained when imputed income items are deducted from household gross income. Imputed items are imputed income obtained from an owner-occupied dwelling in own use. Money income includes benefits in kind connected to employment relationships. Gross money income = the household's factor income (wages and salaries, entrepreneurial and property income) + current transfers received by the household.
Property income
Property income includes rental, interest and dividend income, pensions based on private insurance and other income (from 2000). Interest income subject to the Act on Withholding Tax is included in interest income as gross. Withholding taxes paid on them are included in current transfers paid. In international recommendations, sales profits are not counted as income, so taxable realised capital gains are not included in the income concept in the income distribution statistics. Instead, they are included in income in the total statistics on income distribution. In the statistics published before the statistical reference year 2011, dwelling income and taxable sales profits were included in property income. From the statistical reference year 2011, dwelling income and sales profits were removed from the income concept, because the compilation of statistics is based on the concept of disposable money income fulfilling international recommendations. Data on the previous income concept including dwelling income and sales profits are still formed as reference data and they can be requested from Statistics Finland.
Reference person
In the income distribution statistics and in the statistics of household's assets the person with the highest personal income is chosen as the household's reference person. Personal income is defined according to register data and interview data. Although income is the main criterion determining the reference person, in some cases (e.g. entrepreneur households) the activity of the whole household is taken into account. Households of pensioner parents with children (including those over the age of consent) are also special cases where the parent with the higher income is selected as the reference person if the combined incomes of the parents clearly exceed those of a child.
Reference person
The household member with the highest gross income is selected as the reference person in total statistics on income distribution. Income is determined from register data.
Socio-economic group
In the Household Budget Survey and income distribution survey a socio-economic group is formed for household members on the basis of the person's activity in the last 12 months. For determining the socio-economic group, persons are first divided into economically active and inactive. As a rule, all those who have participated in the production activity for at least six months during the survey year are counted as economically active. Economically active are further divided into self-employed and wage and salary earners on the basis of information reported in the interview. Self-employed are also such persons who have been taxed as employees in taxation (typically entrepreneurs working as employees in their own company). Economically inactive are grouped into students, pensioners, unemployed and others. Unemployed are persons who have been unemployed for at least six months during the year. The socio-economic group of the household is determined by the household's reference person. The classification is based on the Statistics Finland's classification standard of socio-economic groups from 1989. There account is taken of the person's occupation, status in occupation, nature of work and stage in life (Classification of Socio-economic Group 1989. Helsinki. Statistics Finland, Handbooks, 17).
Unemployed
In the income distribution statistics, persons who have been unemployed for at least six months during the year are classified as unemployed. Months of unemployment are asked from persons in the interview. Interview months are checked and where needed, corrected on the basis of register data (the Social Insurance Institution's register data on unemployment allowances and times of receipt, the tax register's unemployment allowances).
Wages and salaries
Wages and salaries include income paid to households as pay – either in money or benefits in kind. In the income concept, income from incentive stock options is included in benefits in kind and thus in wages and salaries. The concept of wages and salaries used in the income distribution statistics includes not only wages and salaries for regular working hours but also overtime compensations and income received from secondary jobs. Realised incentive stock options are also included in wages and salaries in the income concept of the income distribution statistics. Their generating costs are deducted from wages and salaries, but not travel expenses.
Institutional mandate (SIMS 6)
The compilation of statistics is guided by the Statistics Act. The Statistics Act contains provisions on collection of data, processing of data and the obligation to provide data. Besides the Statistics Act, the General Data Protection Regulation, the Data Protection Act and the Act on the Openness of Government Activities are applied to processing of data when producing statistics.
Statistics Finland compiles statistics in line with the EU’s regulations applicable to statistics, which steer the statistical agencies of all EU Member States.
Further information: Statistical legislation
Legal acts and other agreements (SIMS 6.1)
The compilation of the income distribution statistics is guided by the national legislation and the legislation of the European Union.
The compilation of the sample data of the income distribution statistics is based on framework Regulation 1177/2003 of the European Parliament and of the Council concerning Community statistics on income and living conditions (EU-SILC) starting from 2021 and before that on Regulation 1177/2003.
Further information: Legislation of the European Union, EU-SILC.
The income distribution statistics are also guided by international recommendations, which are:
- OECD (2013) OECD Framework for Statistics on the Distribution of Household Income, Consumption and Wealth, OECD Publishing.
- UNECE (2011) Canberra Group Handbook on Household Income Statistics, Second Edition 2011.
Data sharing (SIMS 6.2)
In addition to Statistics Finland, regional data of the total data of the income distribution statistics are also published as table data in other databases. Data by postal code area are available in Statistics Finland's Paavo service and other regional data in Statistics Finland's population information service and the statistics and indicator databank Sotkanet of the Finnish Institute for Health and Welfare (THL).
The data of the income distribution statistics are also included in the ready-made data of Statistics Finland's Research Services.
Eurostat's ESS EU-SILC (EU Statistics on income and living conditions) is based on the sample data of the income distribution statistics and the statistics on living conditions. EG-SILC data are delivered annually to Eurostat. Eurostat, the Statistical Office of the European Union, publishes EU-SILC data on its website and is responsible for the release of its statistical data for research use. Research use requires an application for licence to use statistical data.
In addition, tabulated data are supplied from the sample data of the income distribution statistics to the OECD (OECD Income Distribution Database) and at set intervals to the international database of the Luxembourg Income Study (LIS).
The income data and background variables of the sample data of the income distribution statistics are also used in Statistics Finland's statistics on living conditions and statistics on households' assets. The data of the income distribution statistics from the sample data, the statistics on living conditions and the statistics on households' assets are based on the same sample data.
Cost and burden (SIMS 16)
The total data of Statistics Finland's income distribution statistics and a significant part of the sample data are based on register data, which reduces costs and response burden.
The cost burden in the sample data arises from the information collected from households through interviews in the Survey on income and living conditions, for which data cannot be obtained by other methods or for which no administrative data sources are available.
The response burden is related to the interview data collection of the Survey on income and living conditions, where the data collection method is described in Statistics Finland's quality report on statistics on living conditions.
Source data (SIMS 18.1)
Source data
The total data of the income distribution statistics are statistical data covering the entire household-dwelling population, which are compiled on the individual level from several administrative files and registers. Thus, the statistics contain detailed data on the income of all household-dwelling units and persons belonging to them.
The following administrative files and statistical registers have been used in the compilation of the total data:
- The Population Information System of the Digital and Population Data Services Agency and Statistics Finland's population and dwelling data resource the Tax Administration's tax database
- The benefit registers of the Social Insurance Institution of Finland (KELA)
- The Finnish Institute for Health and Welfare's register of social assistance
- The register of pension contingency of the Finnish Centre for Pensions
- Statistics Finland’s Register of Completed Education and Degrees
- The Financial Supervisory Authority's data (earnings-related unemployment allowances)
- Statistics Finland's Business Register
- Incomes register
Own data collection
The sample data of the income distribution statistics are based on a representative sample survey, that is, the Survey on income and living conditions, in which data are collected for the EU-SILC statistics based on EU legislation. The data of Statistics Finland's statistics on living conditions, sample data of the income distribution statistics and EU-SILC statistics are formed in a joint production process.
Basic data are collected by combining the data collected from households by interviews and register data obtained from the total data to the acceptably interviewed sample with pseudonymised identifiers. The sample follows a rotating panel design of four years. The sampling design is stratified sampling. A majority of classification data on households and the income data that are not available from registers have been collected by interviews in the Survey on income and living conditions.
The sampling and data collection for the Survey on income and living conditions are described in Statistics Finland's quality report of the statistics on living conditions and in the annual quality report of EU-SILC data delivered to Eurostat available on Eurostat's website.
Frequency of data collection (SIMS 18.2)
The data for the income distribution statistics are collected annually.
Data collection (SIMS 18.3)
Data are collected for the income distribution statistics as total data from several administrative files and registers, and statistical data covering the whole population are compiled from them at the end of the year. The total data are compiled by combining register data sources with pseudonymised identifiers for persons in the population. The income of a household-dwelling unit is formed by adding up the income of persons belonging to the same household-dwelling unit.
Data for the sample data of the income distribution statistics are collected by interviewing in the annual Survey on income and living conditions, the data collection method of which is described in Statistics Finland's quality report on statistics on living conditions and in Eurostat's quality report of EU-SILC data.
Data validation (SIMS 18.4)
The correctness of the data formed for the income distribution statistics is checked by comparing the data to different statistical sources and to the data of the previous year's income distribution statistics. Income data are also checked in the sample data once the total data have been combined with the sample.
The coverage and quality of income data and compiled data are studied by comparing the total data with other statistical sources, such as the statistics of the Tax Administration, the Social Insurance Institution, the Finnish Centre for Pensions and the Finnish Institute for Health and Welfare, and data on the households sector in Statistics Finland's national accounts.
The coverage of income data in the total data is good relative to the used income concept (disposable monetary income). The data do not include income items that are entirely excluded from registers or that are not considered to be income. In the sample data only a small share of income items are collected with interviews (e.g. interest income subject to withholding tax).
The main source of error in the sample data is unit non-response, which is corrected with weighting based on the sampling design. Besides non-response and random variation, the quality of the results is also affected by coverage errors (the frame population differs from the basic target population) and measurement errors (the measured value of the result variable differs from its actual value).
Some of the error sources can cause systematic errors. Systematic errors are estimated by comparing the estimates with the data concerning the entire population available from the total data and other registers and with corresponding data from other statistics. Comparisons are made annually and information on them can be requested from Statistics Finland.
The EU-SILC sample data, delivered annually to Eurostat, the Statistical Office of the European Union, are validated and checked at Statistics Finland with the software maintained by Eurostat.
Data compilation (SIMS 18.5)
The data of the income distribution statistics are compiled in an integrated manner according to the work stages of the established production process. Changes, for example in data sources or production systems, are tested and possible error sources are checked when forming the data.
The data are processed after the data collection with necessary checks at unit level, mainly with automatic procedures, following standard rules.
The electronic data collection form of sample data contains credibility and logicality checks of the data. If necessary, the data are edited at unit level in the sample data and erroneous observations and possible classification errors are corrected. The item non-response of interview data is imputed primarily using the real donor methods.
The total data of the income distribution statistics cover the whole population. In the sample data of the income distribution statistics, households and persons receive a weighting coefficient with which their data are raised to represent the data of the basic population. The weights are calibrated to correspond with the population's key known population distributions and income sums. The sum of the weighting coefficients of the sample households that responded acceptably is an estimate of the total number of households in the population at the end of the statistical reference year. The weighting of the sample data is described in more detail in the quality report of the statistics on living conditions.
User needs (SIMS 12.1)
Overall accuracy (SIMS 13.1)
Only administrative register data are used as data sources for the total data of the income distribution statistics, so the quality of the statistics depends on the quality of the source data and the error related to the processing of the data. The total data cover the whole population and there is no sampling or non-response error. The data do not include income items that are entirely excluded from registers such as interest income taxed at source.
The sample data of the income distribution statistics are based on a representative sample survey, the error sources of which are sampling, coverage, measurement, non-response and processing errors. Most of the data derive from administrative data sources. Some of the data are collected by interviewing households. Measurement errors (the measured value of the result variable differs from its correct value) are minor in the register data.
Sampling error (SIMS 13.2)
In the sample data of the income distribution statistics, the accuracy of estimates is assessed with the help of standard errors of data, which are calculated for the key indicators of the sample data. The bias of the sample data is assessed by comparing the register-based data of the sample to the total data.
Non-sampling error (SIMS 13.3)
In addition to sampling error, other sources of error in the sample data of the income distribution statistics are coverage, measurement, non-response and processing errors.
Coverage error (SIMS 13.3.1)
The coverage error of the income distribution statistics can be estimated to be minor.
The framework for the total data of the income distribution statistics is the total data based on Statistics Finland's population and dwelling data resource in the reference period, 31 December. It is also a sample frame for the sample data, which is regularly updated with data obtained from the Digital and Population Data Services Agency's Population Information System. The coverage error of the sample data is described in more detail in the quality report of the statistics on living conditions.
Measurement error (SIMS 13.3.2)
The measurement error is minor in statistics compilation based on a register system. In the sample data of the income distribution statistics, the measurement error is primarily connected to data collected with interviews, which is affected by error sources concerning responses, both for the target and the interviewer. The error is estimated to be random for a majority of the data.
Measurement errors in the data collection are prevented with interviewer training and instructions for data collection, as well as questionnaire designing and testing. Automatic checks (outlier and data logicality checks) are included in the online form. The data obtained from the data collection are checked and errors are corrected in the statistics.
Non-response error (SIMS 13.3.3)
The total data of the income distribution statistics cover the whole population and they are based entirely on register data sources. There is no non-response error.
The main sources of error in the sample data of the income distribution statistics are related to unit non-response. The error caused by item non-response is minor in the sample data, and of the data collected with the interview, it concerns most importantly interest income subject to withholding tax and sub-items of housing costs.
Unit non-response is corrected with weighting based on the sampling design and calibration of design weights with the data of the population. The design weights are first corrected by stratum with the inverse figures of a sample person’s inclusion probability. After this, the response-corrected weights are scaled to the number of households and the weights are calibrated to correspond with the population’s key known demographic distributions and income sums in the total data. Item non-response is patched up by imputation.
Processing error (SIMS 13.3.4)
The data of the income distribution statistics are processed in the established production process by work phase.
Model assumption error (SIMS 13.3.5)
The sampling design and estimation of the sample data of the income distribution statistics are based on established methods. Design-based estimation is used, for which the data selection is model-assisted.
Quality assurance (SIMS 11.1)
Quality management requires comprehensive guidance of activities. The European Statistics Code of Practice forms the basis for the common quality system of the European Statistical System.
The Code of Practice is based on 16 principles that concern statistical authorities' independence, accountability and the quality of the processes and data to be published.
The principles are in line with the Fundamental Principles of Official Statistics approved by the United Nations Statistics Commission and are supplementary to them. The quality criteria of Official Statistics of Finland are compatible with the European Statistics Code of Practice.
Further information:
Quality assessment (SIMS 11.2)
The quality of the data on income distribution statistics is assessed at different stages of the statistical process in accordance with the quality outline of the Official Statistics of Finland. In addition, the quality of the data in the sample data is assessed based on the EU Regulation for quality reporting (Quality - Income and living conditions - Eurostat). The consistency and reliability of the data of the statistics are assessed annually with the help of coherence analyses.
Data revision - policy (SIMS 17.1)
Revisions – i.e. improvements in the accuracy of published statistical data – are a normal feature of statistical production and result in improved quality of statistics.
A revision usually means improvements in the quality of the available data or a significant methodological change where the time series is also revised retrospectively.
Statistical data usually become revised due to supplementation of the data. Then the new, revised statistical figure is based on a wider data basis. The principle is that statistical data are based on the best available data and information concerning the statistical phenomenon. On the other hand, the revisions are communicated as transparently as possible in advance. Advance communication ensures that the users can prepare for the data revisions.
Revisions of statistical data may also be caused by the calculation method used, such as annual benchmarking or updating of weight structures. The data may also become revised due to changes in the base year and classifications. Major revisions in national accounts are made when updating the manuals of national accounts.
The description must also reveal the magnitude of the revisions, as well as for how long the data will be subject to revisions after their initial release and whether certain data are subject to larger revisions than others.If the data of the statistics are revised substantially more than usual, the reasons for it are separately explained in the release.
Data revision - practice (SIMS 17.2)
Methodological changes to the statistical reference year and the revisions to time series data they cause are planned in advance. The time series is revised if the effect on key result data of the statistics is statistically significant.
Timeliness (SIMS 14.1)
The data for the statistical reference year are released as final data based on the total data of the income distribution statistics approximately 12 months from the end of the statistical reference year. The data of the sample data are published as final data approximately 14 months from the end of the statistical reference year.
Punctuality (SIMS 14.2)
Data will be released in accordance with the release times stated in the release calendar. As a rule, there have been no delays between the release date given in the release calendar and the actual date of release.
Comparability - geographical (SIMS 15.1)
The total data of the income distribution statistics describe household-dwelling units' income exhaustively by different regional classifications. In the database tables of the statistics, data are published with the following regional classifications: municipality, sub-regional unit, region and wellbeing services county. The data in the total data on income distribution are not directly internationally comparable.
The data of the sample data of the income distribution statistics are regionally comparable according to the NUTS2 or major region classification and the statistical grouping of municipalities used in the statistics.
The data are internationally comparable at NUTS2 level, while considering the difference in the income concept. The income of the sample data in the income distribution statistics corresponds, apart from small exceptions, to the data published by Eurostat and the OECD. Such an exception is caused by fringe benefits included in wages and salaries, which are included exhaustively in income in national and OECD statistics, but not in EU-SILC.
Comparability - over time (SIMS 15.2)
The time series data of the total data of the income distribution statistics are for the years 1995 onwards. The time series formed on the basis of the total data of the income distribution statistics is not fully comparable between 1995 to 2009 and from 2010 onwards.
In the total data of the income distribution statistics starting from 2010, the income nomenclature includes child maintenance allowance, child support received estimated from the register, tax-free grants and daily allowances of conscripts.
Paid child support was included in current transfers paid as tax-like payment for persons who have claimed deductions for maintenance payments in taxation. Child support received is derived from the tax deduction data of the payers of child maintenance payments. In addition, the calculation method of forest income was reviewed and specifications were also made to the formation of rehabilitation grants by removing the share of a person’s rehabilitation grant that is transferred directly to the employer.
Changes and corrections caused by technical reasons have also been made in forming income after 2010 and they have not been corrected in the time series. Non-taxable insurance compensations due to personal injury were added to income from the Incomes Register in 2023 and received compensation in 2024.
The temporal comparability of the income concepts of the income distribution statistics is also made more difficult by the 2005 dividend tax renewal, where the system of corporation tax credit was abandoned. Before the renewal, corporation tax credit was considered income in dividend, factor and gross income. Because the corporation tax credit was also included in current transfers paid, the renewal does not affect the comparability of disposable income.
The changes caused by the tax renewal have been revised in the time series data of the income distribution statistics for 1993 to 2004. These changes have the same effect on temporal comparisons of income data produced on the basis of both total and sample data.
Comparability of sample data over time
Time series data are available from the sample data starting from 1986. The main changes in the formation of income have been taken into account in time series data. The data for 1986 to 1992 and 1993 are not fully comparable due to the tax reform of 1993. In the time series data, the data for 1966, 1971, 1976 and 1981 are based on the Household Budget Survey.
The imputed dwelling income from owner-occupied dwellings formed from the sample is produced as a separate income component and it is included in households' disposable income (but not in monetary income). In the 2006 statistics, the calculation method of housing income was renewed by taking into account, on the one hand, uniform practices with Statistics Finland's other statistics (especially the Household Budget Survey and national accounts) and on the other hand, the requirements of the regulation concerning the ESS EU-SILC statistics. Housing income calculated with the revised method was entered retrospectively into the time series data of sample data starting from 1993.
Starting from the income distribution statistics for 2006, sample-based current transfers received between households have no longer been included in money or other gifts received by households. The reason for this is coherence with the income concept of the ESS EU-SILC statistics.
The data collection method of the Survey on income and living conditions on which sample data are based was changed in the statistical reference year 2021. At the time, web responding was introduced alongside telephone interviews. Further information about the change can be found in the quality report of the statistics on living conditions. In the statistical reference year 2021, production of some data describing a person's employment and other economic activity was started from the Incomes Register instead of interview data. Due to changes in the data source and data collection form, the input data used in the classification of socio-economic group changed. However, with consideration to ordinary uncertainties related to sample statistics, the time series of socio-economic groups can be considered comparable with previous years.
Of the calibration data of the weights of the sample data, the number of persons belonging to low-income household-dwelling units was applied in the statistical reference year 2015 and the level of education in the statistical reference year 2016 to correct the increased bias caused by higher non-response.
The effect on the educational distribution of persons aged 16 or over was significant: the number of persons with only comprehensive school or no education data grew and that of persons with university degrees decreased. By contrast, changes in median income and annual changes in population groups were small. The income relations between population groups did not change. The calibration change did not affect the temporal comparability of key indicators.
Starting from the statistical reference year 2021, register data sources based on total data are used in the estimation of the total number of households. These are estimated to describe the number and structure of households more accurately than before. Prior to that, a so-called master sample drawn from the population at the end of the statistical reference year was primarily used in the estimation. Due to the new method, the total number of households at the end of the year differs slightly more from the number of household-dwelling units.
Coherence – cross domain (SIMS 15.3)
The total data of the income distribution statistics are consistent with Statistics Finland's statistics based on total data including household-dwelling units. The statistical data of the sample data, Statistics Finland’s statistics on living conditions and the statistics on households’ assets have been formed in an integrated manner by means of data collected with interviews and total data in the Survey on income and living conditions.
Besides the income distribution statistics, Statistics Finland's statistics on households’ assets, Household Budget Survey and national accounts also contain income concepts. There are no considerable conceptual differences between the sample data of the income distribution statistics and the Household Budget Survey. Both follow the definition of disposable income that is accordant with international recommendations.
The housing costs in the income distribution statistics and the consumption expenditure of housing in the Household Budget Survey are congruent. The data of the Household Budget Survey contain all consumption expenditure related to the housing costs of the household’s actual dwellings and free-time residences (incl. imputed consumption).
The statistics use the gross rent principle and the Classification of Individual Consumption by Purpose (COICOP-HBS). In addition to the above-mentioned factors, the data of the statistics may differ for reasons related to sampling and production methods.
The income distribution statistics describe the income and current transfers of the household sector and are thus an extension of the household sector’s income and use of income accounts of the national accounts. When comparing the income sums of the income distribution statistics for the whole country with the items of the national accounts’ income and use of income accounts, the differences in defining the sector, in certain definitions, and in the compilation methods of the statistics should be noted.
In current transfers received in the income distribution statistics, the classification of social benefits is based on the European System of Integrated Social Protection Statistics (ESSPROS). The classification is applied both in the EU SILC comparison statistics and in the total data of the income distribution statistics.
The classification is consistent with the Finnish Institute for Health and Welfare's statistics on social protection expenditure and financing with certain deviations. The most important is how social assistance is handled. In the total data of the income distribution statistics, social assistance belongs to other social security. In the sample data, it is divided into social assistance (housing benefits) directed at actual housing expenditure and other social assistance (other social security).
In the statistics on social protection expenditure and financing, social assistance granted for housing expenditure is included in other income security benefits for housing, and social assistance granted for health expenses is included in other income security benefits during periods of illness as of the statistical reference year 2022.
Student benefits are not included at all in the ESSPROS statistics, but they are a specific type of benefit in the income distribution statistics.
Coherence - national accounts (SIMS 15.3.2)
hen comparing the income sums of the income distribution statistics for the whole country with the items of the national accounts’ income and use of income accounts, the differences in defining the sector, in certain definitions, and in the compilation methods of the statistics should be noted. There are substantial conceptual differences and differences related to production methods especially in property and entrepreneurial income. Due to the differences, the figures of the national accounts and income distribution statistics on, for example, annual changes in households’ disposable income may differ considerably from one another. Key differences include imputed dwelling income and sales profits from property:
- The disposable income of the national accounts includes imputed rent whereas the main income concept of the income distribution statistics is disposable monetary income that does not include imputed rent. Imputed rent is not included either in Eurostat's or OECD's income distribution data.
- The national accounts do not include holding gains but taxes paid on taxable realized capital gains are included. The total data of the income distribution statistics include sales profits(realized capital gains/losses) as property income and taxes paid on them as paid current transfers. The international income concept of the sample data of the income distribution statistics, which is used in Eurostat's and OECD's statistics, does not include realized capital gains or taxes paid on them.
There are also several other differences in the income concept from which further information can be inquired from the income distribution statistics.
Coherence - internal (SIMS 15.4)
Differences in the total and sample data of the income distribution statistics are caused by different household concepts (household-dwelling unit/household), differences in the definition of income, sampling error in the sample data and special sources of error included in the sample data, such as the bias possibly caused by unit non-response.
The income data of the total data and sample data are otherwise the same, but the sample data contain income data missing from registers (interest income subject to withholding tax, certain current transfers between households) that are collected by interviewing households. In the total data of income distribution, the real estate tax of owner-occupiers is not deducted from income but in the sample data it is included in current transfers paid. In some cases, income has been classified differently between total and sample data. Further information about income classifications is available from Statistics Finland.
Release calendar (SIMS 8.1)
Statistics Finland publishes new statistical data at 8 am on weekdays in its web service. The release times of statistics are given in advance in the release calendar available in the web service. The data become public after they have been updated in the web service.
Further information: Publication principles for statistics at Statistics Finland
Release calendar access (SIMS 8.2)
Future publications of the statistics can be found on the page of the statistics at: Future publications of the statistics
User access (SIMS 8.3)
The data are released to all users at the same time. Statistical data may be processed at Statistics Finland and information on them may be given before release only by persons involved in the production of the statistics concerned or who need the data of the statistics concerned in their own work before the data are published.
Further information: Publication principles for statistics
Unless otherwise specifically stated in connection with the product, data or service concerned, Statistics Finland is the producer and copyright owner of the data.
Further information: The terms of use for statistical data
Frequency of dissemination (SIMS 9)
The data of the income distribution statistics are disseminated yearly. Possible revisions are made to the time series in connection with annual releases.
News release (SIMS 10.1)
The release is published annually on the home page of the statistics.
Online database (SIMS 10.3)
The database tables of the statistics can be found in the StatFin database.
Older data of the statistics can be found in the archive database.
Micro-data access (SIMS 10.4)
National data containing sample data of the income distribution statistics and data of the statistics on living conditions are released anonymised to Eurostat, the Statistical Office of the European Union, for the international, comparative ESS EU-SILC micro data. Eurostat releases anonymised micro data (EU-SILC Users' Database) for scientific research use based on an application for licence to use statistical data.
The data obtained through Eurostat include data from countries conducting the EU-SILC survey. Finland’s data are available through Eurostat at a longer time lag than from Statistics Finland. Further information about the EU SILC micro data is available on Eurostat's web pages.
Anonymised unit-level data are compiled annually from the sample data of the income distribution statistics, which can be used for scientific studies and statistical surveys. The data are chargeable and subject to a user licence. Further information is available from Statistics Finland's Research Services. The compilation and release of unit-level data take place in accordance with the legislation governing statistics and the data protection and secrecy policies defined therein.
Other (SIMS 10.5)
Data from the income distribution statistics are available as chargeable special compilations, e.g. as table data. The data of the statistics are also published as articles and blogs in Statistics Finland's Tieto&trendit online periodical.
Documentation on methodology (SIMS 10.6)
The annually compiled Finnish national EU-SILC quality report is available through Eurostat, and it describes the methods and quality of the sample data of the income distribution statistics. The year of the EU-SILC quality report refers to the data collection year (statistical reference year of the income distribution statistics +1).
The data content of the sample data of the income distribution statistics is based on the ESS EU-SILC (EU-SILC, Statistics on Income and Living Conditions, Regulation No 1177/2003; 1700/2019 of the European Parliament and of the Council).
Confidentiality - policy (SIMS 7.1)
The data protection of data collected for statistical purposes is guaranteed. The compilation of statistics is guided by the Statistics Act. Alongside the Statistics Act, the EU’s General Data Protection Regulation (eur-lex.europa.eu) and the Finnish Data Protection Act (Finlex.fi) are applied to the processing of personal data. Provisions on the confidentiality of data collected for statistical purposes are laid down in the Act on the Openness of Government Activities (Finlex.fi).
The data are processed only by persons who need the data in their work. The use of data is restricted by usage rights. All persons employed by Statistics Finland have signed a pledge of secrecy, where they have obliged to keep secret the data prescribed as confidential by virtue of the Statistics Act or the Act on the Openness of Government Activities.
Further information: Data protection
Confidentiality - data treatment (SIMS 7.2)
The data of the income distribution statistics are processed in accordance with the Statistics Act and Statistics Finland's data protection and data security guidelines. The aim of statistical confidentiality is to prevent direct or indirect identification of data concerning an individual person or household-dwelling unit/household from the published data.
The statistical data are used only for statistical purposes and the statistical tables do not reveal data on individual persons or households/household-dwelling units. The research data are protected in accordance with the data protection regulations of Statistics Finland.
The data of the sample data of the income distribution statistics and statistical data on which the statistics on living conditions are based are released to Eurostat, the Statistical Office of the European Union, for the EU-SILC statistics (EU-SILC, Statistics on Income and Living Conditions).
The statistical data do not contain direct identifiers. In addition, protection measures common to the countries and, where necessary, nation-specific measures, are applied to the data. Eurostat releases data from the EU-SILC statistics for research use upon application. Researchers handling the data sign a pledge of secrecy.
Sample data of the income distribution statistics are combined with the service set of Statistics Finland's income distribution statistics. The service data do not contain direct identifiers. To ensure data protection, the values of income variables which make identification easier are made less detailed.
Revisions in statistics
Income distribution statistics: Changes in database tables
revision release
Contact information
Service email
toimeentulo.tilastokeskus@stat.fiInquiries primarily
Veli-Matti Törmälehto
Senior Researcher
029 551 3680