# Income

{{#invoke:Hatnote|hatnote}} {{ safesubst:#invoke:Unsubst||$N=Refimprove |date=__DATE__ |$B= {{#invoke:Message box|ambox}} }} Income is the consumption and savings opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms.[1] However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings received... in a given period of time."[2]

In the field of public economics, the term may refer to the accumulation of both monetary and non-monetary consumption ability, with the former (monetary) being used as a proxy for total income.[1]

## Increase in income

Income per capita has been increasing steadily in almost every country.[3] Many factors contribute to people having a higher income such as education,[4] globalisation and favorable political circumstances such as economic freedom and peace. Increase in income also tends to lead to people choosing to work less hours. Developed countries (defined as countries with a "developed economy") have higher incomes as opposed to developing countries tending to have lower incomes.

File:Distribution of Average Income Growth.PNG
Inequality of income growth, rich getting richer

## Economic definitions

In economics, "factor income" is the return accruing for a person, or a nation, derived from the "factors of production": rental income, wages generated by labor, the interest created by capital, and profits from entrepreneurial ventures.[5]

## Accountancy

The International Accounting Standards Board (IASB) uses the following definition: "Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants." [F.70] (IFRS Framework)