The primary distribution of income shows the income of private households generated directly from market transactions, in particular the purchase and sale of factors of production. This includes as the main item the compensation of employees, i.e. income from the sale of labour as a factor of production. Private households can also receive income on assets, particularly interest, dividends and rents. Then there is also income from net operating surplus and self-employment. Interest and rents payable are recorded as negative items for households. The balance of all these transactions is known as the primary income of private households.
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Eurostat, the statistical office of the European Union
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