Household income is a major contributor to measuring the economic welfare of a region or country. Generally, family income and per capita income provide additional detail on household income but provide a less comprehensive picture than household income.

The U.S. Census Bureau routinely collects household income data as part of its decennial surveys of households and its estimates of the population. The Census measures median household income along with its associated confidence intervals to provide a snapshot of the population’s economic situation.

Other agencies, such as the Federal Reserve Bank, use household income data to make economic projections about the future and identify emerging economic trends. Overall, understanding trends in household income can provide important insights for economic policy makers.

Measuring and understanding household income is also important for conducting policy analysis. For instance, researchers have looked into how economic policy can help low-income households. Policy makers interested in rural economic development also use household income to assess disparities between rural and urban areas.

Apart from government agencies, business use household income data to assess potential markets and locate their businesses. Having an understanding of household income data can be helpful to marketers who can target their products to the right markets.

Ultimately, household income is an important indicator of economic health and may be the only measure available to compare households in terms of their wealth and well-being. Not only does it measure the material wellbeing of households, it can also reveal trends in economic inequality, an important issue in the modern world. It is one of the most important economic measures for understanding economic trends at both an individual and a global level.