EC4352: Using the data on the Average Monthly Household Income from Work Among Resident Employed Households by Deciles: Singapore Economy Assignment, NUS, Singapore

Using the data on the Average Monthly Household Income from Work Among Resident Employed Households by Deciles, compute the nominal percentage change in the monthly household income over the previous year for 2010 to 2021.

Call the Consumer Price Index (CPI) By Household Income Group, Lowest 20%, middle 60%, and Top 20%, and compute the percentage change in real monthly household income, from 2010 to 2021.

Using the data on income, generate the 90/10 ratio as well as the 50/10 ratio.

Generate appropriate histograms or plots that best help you to visualize the data, which you can import into the analyses.

• In Budget 2011, the Minister of Finance, Mr. Tharman Shanmugaratnam articulated the government’s long-term goal of growing incomes for all Singaporeans, including those at the lower end of the income ladder. The aim is “to raise incomes by 30% in real terms over this decade.” Real income growth measures the improvement of consumption and standards of living.

a. Based on your worksheet model, evaluate if the government has achieved the fiscal goal set out in 2011 to raise real incomes by 30% over the decade, that is 2011 to 2020. How has the pandemic affected this long-term goal? What can be done to put the “income” growth path on track?

b. In the speech, the then Minister of Finance used “incomes” to measure the improvement in consumption and standard of living. What other metrics could be used to measure the improvement of consumption and standard of living? Support your arguments with data.

c. Why did the policymaker set raising “real incomes by 30%” as the long-term financial goal instead of “improving income distribution”?

• In the Budget 2023 Roundup speech, DPM Wong said that “Over the past five years, our lower-wage workers have consistently seen higher income growth than those at the median.”

Will you be able to use the data to verify the statement? What are the limitations of using the average household income data? In your analyses, explain what policies have been put in place to uplift the wages of lower-wage workers.