That's completely true and why the average income is considerably lower than the average wage (for instance people on early retirement only make around 35k USD a year).
Please provide a source for that, because in my experience working people most certainly wouldn't want to make due with that even if it's free. (Unless they're one of the few making around that or less.) Though anybody on benefits of course would be thrilled to get that.
You mean that it's better because it accounts for the entire population? I can see that and also do agree---to some extent. When you're talking about wages then it isn't really useful.
And anyway I was talking about the average wage all along and that is the ~67k USD a year (39k DKK a month) I mentioned earlier.
By the way the average income is expected to steeply rise in coming years. The reason being that women are fully on the work market here and have been since the 60s/70s. Hence what's pulling down the average income mainly is retirees (there aren't that many students, disabled people, teenagers over 15, etc.) and since 1990 it's been mandatory for people in the private sector to save a significant percentage of their wage for pensions each month (were talking around 15% though the exact amount depends on your job) and then there's the work market additional pension which takes 8% from your wage (don't think that's included in the 15%). Pre 1990 people in the private sector didn't really have any pensions and would only get the public pension which is quite low. So the longer you get after 1990 the larger pensions retirees have until you get to when retirees entered the work market post 1990. (Public workers paid part of their salary to pensions way before 1990.) So with the income of retirees going up closer to their income while employed the average income should rise too. (Something like 15 to 20% of the population is retired at the moment so their pensions getting much larger will have a significant impact on the average income.)
I said working age people. If I were to start say a fast food restaurant in Denmark, I wouldn't care what the average working Dane earnt. I'd care what the average Dane who could be working was getting, and so how much money it would take to tempt them into working for me. I wouldn't need people who are already working. And indeed McDonalds workers in Denmark get around 37-40k USD a year if they're working full time (not that many would work 37 hours a week). It's far higher than most of the world, but not ridiculous. It's enough money to get people working for them. Probably more money than it would actually take to get people, distorted by union action to freeze out the people who'd happily work for the equivalent of 20k in favour of the ones already with a job.
Likewise if I wanted to sell something like smartphones, I wouldn't care what the working people get. I would want all the students, pensioners, stay at home parents and the rest to be part of my potential market too. They're all either receiving benefits, pensions or supported by working people - and so it's far more useful to know how much money there is going around all the people who could have one of my phones, regardless of how that money gets to them. If there's a main earner getting 90k with a partner and child about to leave home, I want to sell them three smartphones from that income, not one.
The extreme example is slavery. An island with one slave owner and nine slaves bringing in 500k isn't usefully described and compared internationally by an average income of 500k. Those slaves are people too. If nothing else their presence is going to reduce the slave owner's real wage due to his need to provide for them. And if I came along and offered to smuggle them away for a safe job earning 20k, you can probably bet 9 people on that island would leap at the chance.
In short, a wage of 0 is still a wage as far as averages go. The need for money is no less, only the source.
The one time you'd look only at people working is within a particular sector and job type. It's practically impossible to come up with a meaningful average salary or wage across job types as diverse as farming, fast food and IT. Most fast food workers are doing 20 hours or so, a farmer typically lives his life on the farm, and an IT worker would nominally do 37 hours but the reality might be more like 50-60. The fast food worker's income will be highly variable based on when they work, especially if things like overtime or holiday pay come into play, while the farmer's will be highly variable based on what they're selling. It's part of why no one uses an average income of just people working, it doesn't reflect anything useful. But within a sector and job type, it might be useful for a skilled worker to know what to expect. If I was to move to Denmark it would not be as a generic working age person and I would not care what the average income was - I'd care about the average income for data analysts, statisticians and similar. Which could well be above 50k US. Perhaps Denmark's vaunted stats office means they get paid far more than even Denmark's high average income would suggest, or perhaps there's a glut of statisticians as a result and they actually get a little less than the overall average might suggest. Either way the average just for that job type would be helpful.