10 ms·
This is off-topic but I found that the more you dive into the methods used to compare income on both sides of the Atlantic the weirder it gets. Average tends t
by apexalpha 7y ago
This is off-topic but I found that the more you dive into the methods used to compare income on both sides of the Atlantic the weirder it gets.
Average tends to be skewed to America's favour because of an extremely rich top 5% or so. Median is closer to each other but also seems to favor the US. But then do you account for the fact that Americans work longer hours? Or not? In my country the average workweek is 29 hours. In the US it's 38 I think. And most Western EU countries are in between these two. And European also have more paid leave on average.
And you can also use disposable income, which is what you can actually spend, so seems like a fair comparison. Then the US wins again, but on the other hand Americans also have to use this income for stuff like out of pocket healthcare costs, education costs, emergency-unemployment fund etc, where in Europe these things are mostly covered by taxes. But that means your disposable income is lower.
But on the other hand buying stuff is usually more expensive in EU because of the VAT system.