11.3.2—Income classification

Income classification commonly uses national income per person, often adjusted for purchasing power or converted with a chosen exchange-rate method, to group economies into broad income bands.

Per-person averages hide inequality, unpaid work, informal activity, regional prices and public-service access. Exchange-rate and base-year choices can change comparisons, so report the method and date.

A country’s average income can rise while median household income stagnates; another with lower dollar income may buy more local services because prices are lower.

Income per capita is not the same as median income, wealth or quality of life, and classification thresholds are conventions rather than natural boundaries.