Median income versus per capita income: implications for assessing growth and convergence

When thed is distribution of income is skewed, median income is a better indicator of the earnings of the representative member of society than the commonly used per capita income. Median income is linked to per capita income and the disparity in incomegenerating assets’ ownership. While ownership identity is only important in the determination of the size of the change in per capita income, it is crucial for determining both th e direction and the magnitude of changes in median income and, thereby, the prospects of growth and convergence in median income-centred analyses.