Household income is a measure commonly used by the
United StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
government and private institutions. That measure counts all the
incomeIncome is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...
of all residents over the age of 18 in each
householdThe household is "the basic residential unit in which economic production, consumption, inheritance, child rearing, and shelter are organized and carried out"; [the household] "may or may not be synonymous with family"....
, including not only all wages and salaries, but such items as unemployment insurance, disability payments,
child supportIn family law and government policy, child support or child maintenance is the ongoing obligation for a periodic payment made directly or indirectly by an to an for the financial care and support of children of a relationship or marriage that has been terminated, or in some cases never existed...
payments, regular rental receipts, as well as any personal business, investment, or other kinds of income received routinely. The residents of the household do not have to be related to the head of the household for their earnings to be considered part of the household's income. As households tend to share a similar economic context, the use of household income remains among the most widely accepted measures of income. That the size of a household is not commonly taken into account in such measures may distort any analysis of fluctuations within or among the household income categories, and may render direct comparisons between quintiles difficult or even impossible.
In 2007, the
medianIn probability theory and statistics, a median is described as the number separating the higher half of a sample, a population, or a probability distribution, from the lower half. The median of a finite list of numbers can be found by arranging all the observations from lowest value to highest...
annual household income rose 1.3% to $50,233.00 according to the
Census BureauThe United States Census Bureau is the government agency that is responsible for the United States Census. It also gathers other national demographic and economic data. As part of the United States Department of Commerce, the Census Bureau serves as the leading source of quality data about...
. The real median earnings of men who worked full time, year-round climbed between 2006 and 2007, from $43,460 to $45,113. For women, the corresponding increase was from $33,437 to $35,102. The median income per household member (including all working and non-working members above the age of 14) was $26,036 in 2006. In 2006, there were approximately 116,011,000 households in the United States. 1.93% of all households had annual incomes exceeding $250,000. 12.3% fell below the
federal poverty thresholdThe most common measure of poverty in the United States is the "poverty threshold" set by the U.S. government. This measure recognizes poverty as a lack of those goods and services commonly taken for granted by members of mainstream society. The official threshold is adjusted for inflation using...
and the bottom 20% earned less than $19,178. The aggregate income distribution is highly concentrated towards the top, with the top 6.37% earning roughly one third of all income, and those with upper-middle incomes control a large, though declining, share of the total earned income.
Income inequality in the United StatesIncome inequality in the United States is the extent to which income, most commonly measured by household or individual, is distributed in an uneven manner...
, which had decreased slowly after
World War IIWorld War II, or the Second World War , was a global military conflict which involved a majority of the world's nations, including all great powers, organized into two opposing military alliances: the Allies and the Axis...
until 1970, began to increase in the 1970s until reaching a peak in 2006. It declined a little in 2007. Households in the top
quintileA quintile is one of the four quantiles that divide the units of a frequency distribution into five classes each containing the fifth of the total number of units such that the values corresponding to the units in one class are less than the first quintile, those in a second class are greater than...
, 77% of which had two or more income earners, had incomes exceeding $91,705. Households in the mid quintile, with a mean of approximately one income earner per household had incomes between $36,000 and $57,657. Households in the lowest quintile had incomes less than $19,178 and the majority had no income earner.
The 2006 economic survey also found that households in the top two income quintiles, those with an annual household income exceeding $60,000, had a
medianIn probability theory and statistics, a median is described as the number separating the higher half of a sample, a population, or a probability distribution, from the lower half. The median of a finite list of numbers can be found by arranging all the observations from lowest value to highest...
of two income earners while those in the lower quintiles (2nd and middle quintile) had median of only one income earner per household. Due to high
unemploymentUnemployment occurs when a person is available to work and seeking work but currently without work. The prevalence of unemployment is usually measured using the unemployment rate, which is defined as the percentage of those in the labor force who are unemployed...
among those in the lowest quintile the median number of income earners for this particular group was zero. Overall, the United States followed the trend of other
developed nationsThe term developed country is used to describe countries that have a high level of development according to some criteria. Which criteria, and which countries are classified as being developed, is a contentious issue and there is fierce debate about this. Economic criteria have tended to dominate...
with a relatively large population of relatively
affluent householdsAffluence in the United States refers to an individual's or household's state of being in an economically favorable position in contrast to a given reference group...
outnumbering the poor. Among those in between the extremes of the income strata are a large number of households with moderately high middle class incomes and an even larger number of households with moderately low incomes. While the median household income has increased 30% since 1990, it has increased only slightly when considering inflation. In 1990, the median household income was $30,056 or $44,603 in 2003 dollars. While personal income has remained relatively stagnant over the past few decades, household income has risen due to the rising percentage of households with two or more income earners. Between 1999 and 2004 household income stagnated showing a slight increase since 2004. According to the Bureau of Economic Analysis, per capita income has increased every year for the past 10 years, with an annual average of 5.2% gains for the past 4 years.
The recently released US Income Mobility Study showed economic growth resulted in rising incomes for most taxpayers over the period from 1996 to 2005. Median incomes of all taxpayers increased by 24 percent after adjusting for inflation. The real incomes of two-thirds of all taxpayers increased over this period. Income mobility of individuals was considerable in the U.S. economy during the 1996 through 2005 period with roughly half of taxpayers who began in the bottom quintile moving up to a higher income group within 10 years. In addition, the median incomes of those initially in the lower income groups increased more than the median incomes of those initially in the higher income groups.
Household income in the US
| Income range |
Households
(thousands) |
Percent |
Percent below |
Mean number of earners |
Mean household size |
| $0 to $25,000 (28.22%) |
0 |
2 |
| Under $2,500 |
190 |
0 |
0.23 |
|
| $2,500 to $4,999 |
1,389 |
1.22% |
2.26% |
0.52 |
2.04 |
| $5,000 to $7,499 |
2,490 |
2.20% |
3.48% |
0.39 |
1.76 |
| $7,500 to $9,999 |
3,360 |
2.96% |
5.68% |
0.33 |
1.66 |
| $10,000 to $12,499 |
4,013 |
3.54% |
8.64% |
0.46 |
1.71 |
| $12,500 to $14,999 |
3,543 |
3.13% |
12.18% |
0.50 |
1.84 |
| $15,000 to $17,499 |
3,760 |
3.32% |
15.31% |
0.67 |
1.99 |
| $17,500 to $19,999 |
3,438 |
3.03% |
18.63% |
0.73 |
2.10 |
| $20,000 to $22,499 |
4,061 |
3.58% |
21.66% |
0.84 |
2.11 |
| $22,500 to $24,999 |
3,375 |
2.98% |
25.24% |
0.79 |
2.14 |
| $25,000 to $50,000 (26.65%) |
1 |
2.5 |
| $25,000 to $27,499 |
3,938 |
3.48% |
28.22% |
0.93 |
2.21 |
| $27,500 to $29,999 |
2,889 |
2.55% |
31.70% |
1.01 |
2.30 |
| $30,000 to $32,499 |
3,921 |
3.46% |
34.25% |
1.12 |
2.38 |
| $32,500 to $34,999 |
2,727 |
2.41% |
37.71% |
1.17 |
2.39 |
| $35,000 to $37,499 |
3,360 |
2.96% |
40.12% |
1.22 |
2.36 |
| $37,500 to $39,999 |
2,633 |
2.32% |
43.08% |
1.25 |
2.49 |
| $40,000 to $42,499 |
3,378 |
2.98% |
45.40% |
1.31 |
2.46 |
| $42,500 to $44,999 |
2,294 |
2.02% |
48.38% |
1.38 |
2.60 |
| National Median |
$44,389 |
50.00% |
1.35 |
2.57 |
| $45,000 to $47,499 |
2,700 |
2.38% |
50.40% |
1.39 |
2.60 |
| $47,500 to $49,999 |
2,371 |
2.09% |
52.78% |
1.49 |
2.62 |
| $50,000 to $75,000 (18.27%) |
2 |
3 |
| $50,000 to $52,499 |
3,071 |
2.71% |
54.87% |
1.46 |
2.60 |
| $52,500 to $54,999 |
2,006 |
1.77% |
57.58% |
1.58 |
2.72 |
| $55,000 to $57,499 |
2,420 |
2.13% |
59.35% |
1.61 |
2.75 |
| $57,500 to $59,999 |
1,786 |
1.57% |
61.48% |
1.70 |
2.87 |
| $60,000 to $62,499 |
2,566 |
2.26% |
63.05% |
1.63 |
2.82 |
| $62,500 to $64,999 |
1,774 |
1.56% |
65.31% |
1.79 |
2.89 |
| $65,000 to $67,499 |
2,101 |
1.85% |
66.87% |
1.81 |
2.93 |
| $67,500 to $69,999 |
1,637 |
1.44% |
68.72% |
1.74 |
2.80 |
| $70,000 to $72,499 |
1,978 |
1.74% |
70.16% |
1.77 |
2.88 |
| $72,500 to $74,999 |
1,413 |
1.24% |
71.90% |
1.82 |
3.00 |
| $75,000 to $100,000 (10.93%) |
2 |
3 |
| $75,000 to $77,499 |
1,802 |
1.59% |
73.14% |
1.82 |
2.95 |
| $77,500 to $79,999 |
1,264 |
1.11% |
74.73% |
1.98 |
3.04 |
| $80,000 to $82,499 |
1,673 |
1.47% |
75.84% |
1.89 |
3.01 |
| $82,500 to $84,999 |
1,219 |
1.07% |
77.31% |
1.97 |
3.10 |
| $85,000 to $87,499 |
1,418 |
1.25% |
78.38% |
1.94 |
3.00 |
| $87,500 to $89,999 |
984 |
0.86% |
79.63% |
1.98 |
3.03 |
| $90,000 to $92,499 |
1,282 |
1.13% |
80.49% |
1.95 |
3.03 |
| $92,500 to $94,999 |
917 |
0.81% |
81.62% |
2.17 |
3.25 |
| $95,000 to $97,499 |
1,023 |
0.90% |
82.43% |
2.06 |
3.29 |
| $97,500 to $99,999 |
846 |
0.74% |
83.33% |
2.12 |
3.33 |
| $100,000 or more (15.73%) |
2 |
3 |
| $100,000 to $149,999 |
11,194 |
9.89% |
84.27% |
ca. 2 |
ca. 3 |
| $150,000 to $199,999 |
3,595 |
3.17% |
94.16% |
| $200,000 to $249,999 |
1,325 |
1.17% |
97.33% |
| $250,000 and above |
1,699 |
1.50% |
98.50% |
SOURCE: US Census Bureau, 2005
Quintiles
Households are often divided into quintiles according to their gross income. Each quintile represents 20%, or one fifth, of all households.
Household type is strongly correlated with household income. Married couples are disproportionately represented in the upper two quintiles, compared to the general population of households. Cross-referencing shows that this is likely due to the presence of multiple income earners in these families. Non-family households (individuals) are disproportionately represented in the lower two quintiles. Households headed by single males are disproportionately found in the middle three quintles; single females head households concentrated in the bottom three quintiles.
The highest income households are almost ten times as likely to own their homes rather than rent, but in the lowest quintile, the ratio of owners to renters is nearly one to one.
The New York Times has used the quintiles to define class. It has assigned the quintiles from lowest to highest as bottom fifth,
lower middleIn developed nations across the earth, the lower middle class is a sub-division of the greater middle class which constitutes the largest socio-economic class...
,
middleThe middle class are any class in the middle of a social schema. In Weberian socio-economic terms they are the broad group of people in contemporary society who fall socioeconomically between the working class and upper class. In Marxist terms, middle class commonly refers to either the...
,
upper middleThe upper middle class is a sociological concept referring to the social group constituted by higher-status members of the middle class. This is in contrast to the term lower middle class used for the group at the opposite end of the middle class stratum and the regular middle class. There is...
, and
top fifthIn sociology an upper class is the group of people at the top of a social hierarchy. Members of an upper class may have great power over the allocation of resources and governmental policy in their area, but only to the extent that the power of the state can intervene in free exchange or distort...
.
| Data |
All households |
Lowest fifth |
Second fifth |
Middle fifth |
Fourth fifth |
Highest fifth |
Top 5% |
| Households (in 1000s) |
113,146 |
22,629 |
22,629 |
22,629 |
22,629 |
22,629 |
5,695 |
| Lower limit |
$0 |
$0 |
$18,500 |
$34,738 |
$55,331 |
$88,030 |
$157,176 |
| Median number of income earners |
1 |
0 |
1 |
1 |
2 |
2 |
2 |
| Tenure |
| Owner occupied |
62.4% |
49.0% |
58.8% |
68.9% |
80.5% |
90.0% |
92.8% |
| Renter occupied |
29.2% |
48.3% |
39.7% |
29.9% |
18.7% |
9.6% |
6.9% |
| Type of household |
| Non-family households |
31.93% |
58.92% |
40.02% |
29.96% |
19.12% |
11.64% |
9.36% |
| Family households |
68.06% |
41.06% |
59.97% |
70.04% |
80.87% |
88.35% |
90.61% |
| Breakdown of family households |
| Married couple families |
51.35% |
19.03% |
38.89% |
51.00% |
67.05% |
80.08% |
85.59% |
| Single-male family |
4.32% |
3.08% |
4.64% |
5.69% |
4.89% |
3.30% |
2.47% |
| Single-female family |
12.38% |
18.94% |
16.43% |
13.35% |
8.93% |
4.24% |
2.54% |
SOURCE: US Census Bureau, 2004
Race
Despite advances minorities have made to exit
povertyPoverty is the condition of lacking basic human needs such as nutrition, clean water, health care, clothing, and shelter because of the inability to afford them. This is also referred to as absolute poverty or destitution...
and with many Black Americans and Latino Americans joining the
middle classThe American middle class is an ambiguously defined social class in the United States. While the concept remains largely ambiguous in popular opinion and common language use, contemporary sociologists have put forward several, more or less congruent, theories on the American middle class...
, there is still an uneven racial distribution among the income quintiles. While White Americans made up roughly 75.1% of all persons in 2000, 87.93% of all households in the top 5% were headed by a person who identified as being White alone. Only 4.75% of all household in the top 5% were headed by someone who identified him or herself as being Hispanic or Latino of any race, versus 12.5% of persons identifying themselves as Hispanic or Latino in the general population. Overall, 86.01% of all
householdThe household is "the basic residential unit in which economic production, consumption, inheritance, child rearing, and shelter are organized and carried out"; [the household] "may or may not be synonymous with family"....
s in the top two quintiles with upper-middle range incomes of over $55,331 were headed by a head of household who identified him or herself as White alone, while only 7.21% were being headed by someone who identified as being Hispanic and 7.37% by someone who identified as being African American or Black. Overall, households headed by Hispanics and African Americans or Blacks were underrepresented in the top two quintiles and overrepresented in the bottom two quintiles. Households headed by persons who identified as being Asian alone, on the other hand, were overrepresented among the top two quintiles. In the top five percent the percentage of Asians was nearly twice as high as the percentage of Asians among the general population.
European-AmericansA European American is a person who resides in the United States and is either from Europe or is the descendant of European immigrants or founding colonists. Spanish Americans are the earliest European American group, with a continuous presence since 1565...
were relatively even distributed throughout the quintiles only being underrepresented in the lowest quintile and slightly overrepresented in the top quintile and the top five percent.
| Race |
All households |
Lowest fifth |
Second fifth |
Middle fifth |
Fourth fifth |
Highest fifth |
Top 5% |
| White alone |
Number in 1000s |
92,702 |
16,940 |
18,424 |
18,978 |
19,215 |
19,721 |
5,695 |
| Percentage |
81.93% |
74.87% |
81.42% |
83.87% |
84.92% |
87.16% |
87.93% |
| Asian alone |
Number in 1000s |
4,140 |
624 |
593 |
786 |
871 |
1,265 |
366 |
| Percentage |
3.65% |
2.76% |
2.26% |
3.47% |
3.84% |
5.59% |
6.46% |
| African American or Black |
Number in 1000s |
13,792 |
4,474 |
3,339 |
2,637 |
2,053 |
1,287 |
236 |
| Percentage |
12.19% |
19.77% |
14.75% |
11.65% |
9.07% |
5.69% |
1.04% |
Hispanic or Latino
(of any race) |
Number in 1000s |
12,838 |
3,023 |
3,130 |
2,863 |
1,931 |
1,204 |
269 |
| Percentage |
11.33% |
13.56% |
13.83% |
12.20% |
8.53% |
5.89% |
1.19% |
SOURCE: US Census Bureau, 2004
Education and Gender
Household income as well as per capita income in the United States rise significantly as the
educational attainmentThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
increases. In 2005 graduates with a Master's in Business Administration (MBA) who accepted job offers are expected to earn a base salary of $88,626. They are also expected to receive "…[a]n average
signing bonusA signing bonus or sign-on bonus is a sum of money paid to a new employee by a company as an incentive to join that company. Signing bonuses are almost exclusively given to full-time salaried employees of a company, as opposed to a temporary hire or intern...
of $17,428." According to the US Census Bureau persons with
doctoratesThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
in the United States had an average income of roughly $81,400. The average for an advanced degree was $72,824 with men averaging $90,761 and women averaging $50,756 annually. Year-round full-time workers with a
professional degreeThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
had an average income of $109,600 while those with a
Master's degreeThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
had an average income of $62,300. Overall, "…[a]verage earnings ranged from $18,900 for
high school dropoutsThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
to $25,900 for
high school graduatesThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
, $45,400 for
college graduatesThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
and $99,300 for workers with
professional degreesThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
(
M.D.The Doctor of Medicine is a doctoral degree for physicians...
, D.P.T., D.O.,
J.D.Juris Doctor is a first professional degree.The degree was first awarded by Harvard University in the United States in the late 19th century as a degree similar to the old European doctor of law degree...
, Pharm.D., D.D.S., or D.V.M.).
Considering how education significantly enhances the earnings potential of individuals, it should come as no surprise that individuals with graduate degrees have an average
per capita incomePer capita income means how much each individual receives, in monetary terms, of the yearly income generated in the country. This is what each citizen is to receive if the yearly national income is divided equally among everyone. Per capita income is usually reported in units of currency per year...
exceeding the
median household incomeThe median household income is commonly used to provide data about geographic areas and divides households into two equal segments with the first half of households earning less than the median household income and the other half earning more...
of
married couple familiesIn the Canada Census such families consisting of a married couple and children are referred to as Census Families. The US Census Bureau refers to such household structures as "Married couple families...
among the general population ($63,813). Higher
educational attainmentThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
did not, however, help close the income gap between the genders as the life-time earnings for a male with a professional degree were roughly forty percent (39.59%) higher than those of a female with a
professional degreeThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
. The lifetime earnings gap between males and females was the smallest for those individuals holding an
Associate degreesThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
with male life-time earnings being 27.77% higher than those of females. While
educational attainmentEducational attainment is a term commonly used by statisticians to refer to the highest degree of education an individual has completed.The US Census Bureau Glossary defines educational attainment as "the highest level of education completed in terms of the highest degree or the highest level of...
did not help reduce the income inequality between men and women, it did increase the earnings potential of individuals of both sexes, enabling many households with one or more
graduate degreeThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
householders to enter the top household income quintile.
Household income also increased significantly with the
educational attainmentThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
of the householder. The US Census Bureau publishes
educational attainmentThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
and income data for all households with a householder who was aged twenty-five or older. The biggest income difference was between those with some college education and those who had a
Bachelor's degreeA bachelor's degree is usually an academic degree awarded for an undergraduate course or major that generally lasts for four years, but can range from two to six years depending on the region of the world...
, with the latter making $23,874 more annually. Income also increased substantially with increased post-secondary education. While the median household income for a household with a householder having an Associates degree was $51,970, the median household income for householders with a Bachelor's degree or higher was $73,446. Those with doctorates had the second highest median household with a median of $96,830; $18,289 more than that for those at the
Master's degreeA master's degree is an academic degree granted to individuals who have undergone study demonstrating a mastery or high-order overview of a specific field of study or area of professional practice...
level, but $3,170 lower than the median for households with a professional degree holding householder.
| Criteria |
Overall |
Less than 9th grade |
High school drop-out |
High school graduate |
Some college |
Associates degree |
Bachelor's degree |
Bachelor's degree or more |
Master's degree |
Professional degree |
Doctorate degree |
| Median individual income |
Male, age 25+ |
$33,517 |
$15,461 |
$18,990 |
$28,763 |
$35,073 |
$39,015 |
$50,916 |
$55,751 |
$61,698 |
$88,530 |
$73,853 |
| Female, age 25+ |
$19,679 |
$9,296 |
$10,786 |
$15,962 |
$21,007 |
$24,808 |
$31,309 |
$35,125 |
$41,334 |
$48,536 |
$53,003 |
| Both sexes, age 25+ |
$32,140 |
$17,422 |
$20,321 |
$26,505 |
$31,054 |
$35,009 |
$43,143 |
$49,303 |
$52,390 |
$82,473 |
$70,853 |
| Median household income |
$45,016 |
$18,787 |
$22,718 |
$36,835 |
$45,854 |
$51,970 |
$68,728 |
$73,446 |
$78,541 |
$100,000 |
$96,830 |
SOURCE: US Census Bureau, 2003
The change in median personal and household since 1991 also varied greatly with
educational attainmentThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
. The following table shows the median household income according to the educational attainment of the householder. All data is in 2003 dollars and only applies to householders whose householder is aged twenty-five or older. The highest and lowest points of the median household income are presented in bold face. Since 2003, median income has continued to rise for the nation as a whole, with the biggest gains going to those with Associate's Degrees, Bachelor's Degree or More, and Master's Degrees. High-school dropouts fared worse with negative growth.
| Year |
Overall Median |
Less than 9th grade |
High school drop-out |
High school graduate |
Some college |
Associates degree |
Bachelor's degree |
Bachelor's degree or more |
Master's degree |
Professional degree |
Doctorate degree |
| 1991 |
$40,873 |
$17,414 |
$23,096 |
$37,520 |
$46,296 |
$52,289 |
$64,150 |
$68,845 |
$72,669 |
$102,667 |
$92,614 |
| 1993 |
$40,324 |
$17,450 |
$22,523 |
$35,979 |
$44,153 |
$49,622 |
$64,537 |
$70,349 |
$75,645 |
$109,900 |
$93,712 |
| 1995 |
$42,235 |
$18,031 |
$21,933 |
$37,609 |
$44,537 |
$50,485 |
$63,357 |
$69,584 |
$77,865 |
$98,302 |
$95,899 |
| 1997 |
$43,648 |
$17,762 |
$22,688 |
$38,607 |
$45,734 |
$51,726 |
$67,487 |
$72,338 |
$77,850 |
$105,409 |
$99,699 |
| 1999 |
$46,236 |
$19,008 |
$23,977 |
$39,322 |
$48,588 |
$54,282 |
$70,925 |
$76,958 |
$82,097 |
$110,383 |
$107,217 |
| 2001 |
$42,900 |
$18,830 |
$24,162 |
$37,468 |
$47,605 |
$53,166 |
$69,796 |
$75,116 |
$81,993 |
$103,918 |
$96,442 |
| 2003 |
$45,016 |
$18,787 |
$22,718 |
$36,835 |
$45,854 |
$56,970 |
$68,728 |
$73,446 |
$78,541 |
$100,000 |
$96,830 |
| Average |
$43,376 |
$18,183 |
$23,013 |
$37,620 |
$46,109 |
$51,934 |
$66,997 |
$72,376 |
$78,094 |
$104,368 |
$94,487 |
SOURCE: US Census Bureau, 2003
1%er / One Percenter
A one percenter or 1%er is an individual that lies in top 1% of the American Tax bracket. These are the top earners in American society. It has been noted that the richest 1% of the American population owns as much as the combined wealth of the bottom 90%. Typical 1%er's include top-level executives, high-rung politicians, professional athletes, celebrities and wealthy heirs. Ivy League educations are common amongst these individuals. Famous 1%er's include
Bill GatesWilliam Henry "Bill" Gates III is an American business magnate, philanthropist, and chairman of Microsoft, the software company he founded with Paul Allen.He is ranked consistently one of the world's wealthiest people...
,
George BushGeorge Bush may refer to:*George W. Bush , 43rd President of the United States *George H. W. Bush , 41st President of the United States *George Bush , 19th-century biblical scholar and preacher...
,
Tiger WoodsEldrick Tont "Tiger" Woods is an American professional golfer whose achievements to date rank him among the most successful golfers of all time. Currently the World No...
, Stephen Spielberg and
Paris HiltonParis Whitney Hilton is an American socialite, heiress, media personality, model, singer, author, fashion designer and actress....
.
Age of householder
Household income in the United States varies substantially with the age of the person who heads the household. Overall, the median household income increased with the age of householder until retirement age when household income started to decline. The highest median household income was found among households headed by working baby-boomers. Households headed by persons between the ages of 45 and 54 had a median household income of $61,111 and a mean household income of $77,634. The median income per member of household for this particular group was $27,924. The highest median income per member of household was among those between the ages of 54 and 64 with $30,544(This figure is not accurate, as it is lower than the next group). The group with the second highest median household income, were households headed by persons between the ages 35 and 44 with a median income of $56,785, followed by those in the age group between 55 and 64 with $50,400. Not surprisingly the lowest income group was composed of those households headed by individuals younger than 24, followed by those headed by persons over the age of 75. Overall, households headed by persons above the age of seventy-five had a median household income of $20,467 with the median household income per member of household being $18,645. These figures support the general assumption that median household income as well as the median income per member of household peaked among those households headed by middle aged persons, increasing with the age of the householder and the size of the household until the householder reaches the age of 64. With retirement income replacing salaries and the size of the household declining, the median household income decreases as well.
Aggregate income distribution
The aggregate income measures the combined income earned by all persons in a particular income group. In 2007, all households in the United States earned roughly $7.896 trillion . One half, 49.98%, of all income in the US was earned by households with an income over $100,000, the top twenty percent. Over one quarter, 28.5%, of all income was earned by the top 8%, those households earning more than $150,000 a year. The top 3.65%, with incomes over $200,000, earned 17.5%. Households with annual incomes from $50,000 to $75,000, 18.2% of households, earned 16.5% of all income. Households with annual incomes from $50,000 to $95,000, 28.1% of households, earned 28.8% of all income. The bottom 10.3% earned 1.06% of all income.
Distribution of Income
| Before-Tax Family Income in the U.S. from 1989-2004 |
|
|
|
|
|
|
|
| (thousands of 2004 dollars) |
|
|
|
|
|
|
|
| before tax family income (mean) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Percentiles of net worth |
|
1989 |
1992 |
1995 |
1998 |
2001 |
2004 |
| 90-100 |
|
205.1 |
158.5 |
172.8 |
206.3 |
272.7 |
256.2 |
| 75-89.9 |
|
74.6 |
67.0 |
65.0 |
78.3 |
83.7 |
87.9 |
| 50-74.9 |
|
52.9 |
48.1 |
50.1 |
54.3 |
62.7 |
60.6 |
| 25-49.9 |
|
36.9 |
36.4 |
38.6 |
39.3 |
42.1 |
42.2 |
| Less than 25 |
|
21.5 |
22.9 |
22.9 |
23.6 |
25.6 |
25.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| before tax family income (median) |
|
|
|
|
|
|
|
| Percentiles of net worth |
|
1989 |
1992 |
1995 |
1998 |
2001 |
2004 |
| 90-100 |
|
114.7 |
106.6 |
99.1 |
102.4 |
134.7 |
143.8 |
| 75-89.9 |
|
61.2 |
56.7 |
52.6 |
65.8 |
74.1 |
77.0 |
| 50-74.9 |
|
46.3 |
43.2 |
43.6 |
47.0 |
54.4 |
52.4 |
| 25-49.9 |
|
32.3 |
32.2 |
35.3 |
35.3 |
37.2 |
37.0 |
| Less than 25 |
|
15.3 |
17.2 |
17.8 |
18.5 |
21.0 |
20.5 |
Household income over time
Please note that all figures are presented in 2003 dollars.
Since 1967, the median household income in the United States has risen by 31%, fluctuating several times. The rise in household income is largely the result of an increase in personal income among college graduates, a group that has doubled in size since the 1960s, and women entering the labor force. Today, 42% of all households have two income earners. Household income increased dramatically faster for affluent households with income inequality having increased steadily since the 1970s.
While household income has increased, its growth has been slowed by a decrease in married-couple households who tend to have two earners and, therefore, higher incomes. While the proportion of wives working year-round in married couple households with children has increased from 17% in 1967 to 39% in 1996, the proportion of such households among the general population has decreased. This means that that the share the most economically prosperous type of household in the has been dwindling in the United States. In 1969, more than 40% of all households consisted of a married couple with children. By 1996 only a rough quarter of US households consisted of married couples with children. As a result of these changing
household demographicsAs of October 20th 2009, the United States has a total resident population of 308 million. It is a very urbanized nation, with 81% of the population residing in cities and suburbs as of mid-2005 . The mean population center of the United States has consistently shifted westward and southward, with...
, median household income rose relatively slowly despite an ever increasing female labor force and a considerable increase in the percentage of
college graduatesThe educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
.
Overall, the median household income rose from $33,338 in 1967 to an all-time high of $44,922 in 1999, and has since decreased slightly to $43,318. Decreases in household income are visible during each
recessionIn economics, a recession is a general slowdown in economic activity over a long period of time, or a business cycle contraction. During recessions, many macroeconomic indicators vary in a similar way...
, while increases are visible during economic upturns. These fluctuations were felt across the income strata as the incomes of both, the 95th and 20th percentile were affected by fluctuations in the economy. Income in the period between 1967 and 1999 grew considerably faster among wealthier households than it did among poorer households. For example the household income for the 80th precentile, the lower threshold for the top quintile, rose from $55,265 in 1967 to $86,867 in 2003, a 57.2% increase. The median household income rose by 30% while the income for the 20th percentile (the lower threshold for the second lowest quintile) rose by only 28% from $14,002 to $17,984. As the majority of households in the top quintile had two income earners, versus zero for the lowest quintile and that the widening gap between the top and lowest quintile may largely be the reflection of changing household demographics including the addition of women to the workforce. Household demographics are not, however, the cause of the growing gap between the top 5% and the rest of the upper quintile. The top 5% had fewer dual earner households and full-time workers than the top quintile overall. In 2003 a household in the 95
th percentile earned 77.2% more than a household in the 80
th percentile, compared to 60.5% in 1967, a 27.6% increase in the earnings increase discrepancy between the two groups. Overall the income of the 95
th percentile grew 15.2% faster than that of the 80
th, 146.8% faster than that of the median and 159.9% faster than that of the 20
th percentile.
Households in the top 1% experienced the by far greatest increases in household income. According to economist
Janet YellenJanet Louise Yellen is an economist and president of the Federal Reserve Bank of San Francisco. She is also a voting member of the Federal Open Market Committee in 2009. Dr. Yellen is Professor Emeritus at the University of California, Berkeley's Haas School of Business, where she was the Eugene...
"the growth [in real income] was heavily concentrated at the very tip of the top, that is, the top 1 percent." A 2006 analysis of IRS income data by economists Emmanuel Saez at the
University of California, BerkeleyThe University of California, Berkeley is a public research university located in Berkeley, California, United States. The oldest of the ten major campuses affiliated with the University of California, Berkeley offers some 300 undergraduate and graduate degree programs in a wide range of disciplines...
and Thomas Piketty at the
Paris School of EconomicsThe Paris School of Economics , created on 21 December 2006 in Paris, France, is a French economics department. The EEP combines researchers from several institutions, including DELTA and INRA...
showed that the share of income held by the top 1% was as large in 2005 as in 1928. The data revealed that reported income increased by 9% in 2005, with the mean for the top 1% increasing by 14% and that for the bottom 90% dropping slightly by 0.6%.
While per-capita, disposable income has increased 469% since 1972, it has only increased moderately when inflation is considered. In 1972, disposable personal income was determined to be $4,129; $19,385 in 2005 dollars. In 2005, disposable personal income was, however, $27,640, a 43% increase. Since the late 1990s, household income has fallen slightly.
| Data |
2003 |
2000 |
1997 |
1994 |
1991 |
1988 |
1985 |
1982 |
1979 |
1976 |
1973 |
1970 |
1967 |
| 20th percentile |
$17,984 |
$19,142 |
$17,601 |
$16,484 |
$16,580 |
$17,006 |
$16,306 |
$15,548 |
$16,457 |
$15,615 |
$15,844 |
$15,126 |
$14,002 |
| Median (50th) |
$43,318 |
$44,853 |
$42,294 |
$39,613 |
$39,679 |
$40,678 |
$38,510 |
$36,811 |
$38,649 |
$36,155 |
$37,700 |
$35,832 |
$33,338 |
| 80th percentile |
$86,867 |
$87,341 |
$81,719 |
$77,154 |
$74,759 |
$75,593 |
$71,433 |
$66,920 |
$68,318 |
$63,247 |
$64,500 |
$60,148 |
$55,265 |
| 95th percentile |
$154,120 |
$155,121 |
$144,636 |
$134,835 |
$126,969 |
$127,958 |
$119,459 |
$111,516 |
$111,445 |
$100,839 |
$102,243 |
$95,090 |
$88,678 |
SOURCE: US Census Bureau, 2004 (Page 44/45)
International comparison
Median household income for other countries is shown in the table below. The data for each country has been converted to US dollars using
Purchasing Power ParityThe purchasing power parity theory uses the long-term equilibrium exchange rate of two currencies to equalize their purchasing power...
(obtained from the OECD). Median household income in the United States remains slightly higher than in the UK and Ireland, yet lower than that of Switzerland. It is important to note that the differences in median household income between US states can be as large as those between the developed nations. The median household income of the UK, for example, is comparable to that of
FloridaFlorida is a state located in the southeastern region of the United States, bordering Alabama to the northwest and Georgia to the north. It was the 27th state admitted to the United States...
or
South CarolinaSouth Carolina is a U.S. state that borders Georgia to the south and North Carolina to the north. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence from the British Crown during the American Revolution. The colony was...
, while Switzerland is comparable to
New JerseyNew Jersey is a state in the Mid-Atlantic region of the United States. It is bordered on the north by New York, and to the east by the Hudson River, Upper New York Bay, the Kill Van Kull, Newark Bay, the Arthur Kill, Raritan Bay, Sandy Hook Bay, Westchester County, New York City, Long Island, and...
or
New HampshireNew Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It borders Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian province of...
.
Social class
Household income is one of the most commonly used measures of
incomeIncome in the United States is measured by the United States Department of Commerce either by household or individual. The differences between household and personal income is considerable since 42% of households, the majority of those in the top two quintiles with incomes exceeding $57,658, now...
and, therefore, also one of the most prominent indicators of social class. Household income and education do not, however, always reflect class status or
standard of livingStandard of living is generally measured by standards such as real income per person and poverty rate. Other measures such as access and quality of health care, income growth inequality and educational standards are also used. Examples are access to certain goods , or measures of health such as...
correctly. It does not consider household size and, due to differing numbers of income earners per household, does not always accurately reflect a person's position within the occupational hierarchy.
SociologistSociology is the scientific or systematic study of human societies. It is a branch of social science that uses various methods of empirical investigation and critical analysis to develop and refine a body of knowledge about human social structure and activity, often with the goal of applying such...
Dennis GilbertDennis Gilbert is professor and chair of sociology at Hamilton College in Clinton, New York. He holds a Ph.D. from Cornell University and has taught at the Universidad Catlica in Lima, Peru, Cornell University and joined Hamilton college in 1976. He has published a variety of sociology books,...
acknowledges that "... the class structure... does not exactly match the distribution of household income" with "the mismatch [being] greatest in the middle..." (Gilbert, 1998: 92) He states that it is possible for a dual earner household from the working class to earn as much as a single upper middle class individual. Yet, he contends that household income is the best suited income measure as all members of a household share a more or less common socio-economic vantage point. As social classes lack distinct boundaries and commonly overlap, it is not possible to define any household income thresholds. Rather, only common income ranges and typical household incomes are available. According to Leonard Beeghley a household income of roughly $95,000 would be typical of a dual-earner middle class household while $60,000 would be typical of a dual-earner working class household and $18,000 typical for an
impoverishedThe most common measure of poverty in the United States is the "poverty threshold" set by the U.S. government. This measure recognizes poverty as a lack of those goods and services commonly taken for granted by members of mainstream society. The official threshold is adjusted for inflation using...
household. William Thompson and Joseph Hickey see common incomes for the upper class as those exceeding $500,000 with upper middle class incomes ranging from the high 5-figures to most commonly in excess of $100,000. Typical household incomes for the lower middle class range from $35,000 to $75,000; $16,000 to $30,000 for the working class and less than $16,000 for the
lower classThe concept of a lower class in the United States is used to describe those at or near the lower end of the socio-economic hierarchy. As with all social classes in the United States, the lower class is loosely defined and its boundaries and definitions subject to debate and ambiguous popular...
.
1%er / One Percenter
A one percenter or 1%er is an individual that lies in top 1% of the American Tax bracket. These are the top earners in American society. It has been noted that the richest 1% of the American population owns as much as the combined wealth of the bottom 90%. Typical 1%er's include top-level executives, high-rung politicians, professional athletes, celebrities and wealthy heirs. Famous 1%er's include
Bill GatesWilliam Henry "Bill" Gates III is an American business magnate, philanthropist, and chairman of Microsoft, the software company he founded with Paul Allen.He is ranked consistently one of the world's wealthiest people...
,
George BushGeorge Bush may refer to:*George W. Bush , 43rd President of the United States *George H. W. Bush , 41st President of the United States *George Bush , 19th-century biblical scholar and preacher...
,
Tiger WoodsEldrick Tont "Tiger" Woods is an American professional golfer whose achievements to date rank him among the most successful golfers of all time. Currently the World No...
, Stephen Spielberg and
Paris HiltonParis Whitney Hilton is an American socialite, heiress, media personality, model, singer, author, fashion designer and actress....
.
Income by state
The median household income by state ranged from $36,338 or 28% below national median in
MississippiMississippi is a state located in the Southern United States. Jackson is the state capital and largest city. The state's name comes from the Mississippi River, which flows along its western boundary, and takes its name from the Ojibwe word misi-ziibi . The state is heavily forested outside of the...
, to $66,176 or 32% above national median in
New HampshireNew Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It borders Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian province of...
.
New JerseyNew Jersey is a state in the Mid-Atlantic region of the United States. It is bordered on the north by New York, and to the east by the Hudson River, Upper New York Bay, the Kill Van Kull, Newark Bay, the Arthur Kill, Raritan Bay, Sandy Hook Bay, Westchester County, New York City, Long Island, and...
and
ConnecticutConnecticut is a state in the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and New York to the west and south ....
came in at number two and three respectively with a
median household incomeThe median household income is commonly used to provide data about geographic areas and divides households into two equal segments with the first half of households earning less than the median household income and the other half earning more...
s of $65,306 and $64,682.
CaliforniaCalifornia is the most populous state in the United States, and the third largest by area. California is the second most populous sub-national entity in the Americas, behind only São Paulo, Brazil...
, with the highest
median home priceReal estate pricing deals with the valuation of real estate and all the standard methods of determining the price of fixed assets apply....
in the nation and home prices that far outpaced incomes, only ranked eleveth with a median household income of $57,041. While California's median income was not near enough to afford the average California home or even a starter home, West Virginia, which had one of the nation's lowest median household incomes, also had the nation's lowest median home price. The
northeastern statesThe Northeastern United States is a region of the United States. According to the definition used by the United States Census Bureau, the Northeast region consists of nine states: the New England states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and Connecticut; and the...
, more specifically those located in
New EnglandNew England is a region of the United States. It is located at the northeastern corner of the US, bordered by the Atlantic Ocean, Canada and the state of New York, consisting of the modern U.S...
, along with the
West CoastThe "West Coast", "Western Seaboard", or "Pacific Coastline" are terms for the westernmost coastal states of the United States. It most often comprises California, Oregon and Washington...
, had the highest median household income. By Census Bureau Region of the top 10, only
MinnesotaMinnesota is a state in the Midwestern region of the United States. The twelfth largest state by area in the U.S., it is the twenty-first most populous, with 5.2 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the...
is located in the
Mid-WestThe Midwestern United States is one of the four geographic regions within the United States of America that are officially recognized by the United States Census Bureau....
, while four are in
NortheastThe Northeastern United States is a region of the United States. According to the definition used by the United States Census Bureau, the Northeast region consists of nine states: the New England states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and Connecticut; and the...
(
New JerseyNew Jersey is a state in the Mid-Atlantic region of the United States. It is bordered on the north by New York, and to the east by the Hudson River, Upper New York Bay, the Kill Van Kull, Newark Bay, the Arthur Kill, Raritan Bay, Sandy Hook Bay, Westchester County, New York City, Long Island, and...
,
ConnecticutConnecticut is a state in the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and New York to the west and south ....
,
New HampshireNew Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It borders Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian province of...
and
MassachusettsThe Commonwealth of Massachusetts is a state in the New England region of the northeastern United States. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. Most of its population of...
), three are in the
SouthThe Southern United States—commonly referred to as the American South, Dixie, Down South, or simply the South—constitutes a large distinctive region in the southeastern and south-central United States...
(
MarylandMaryland is a state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia and the District of Columbia to the south and west, Pennsylvania to the north, and Delaware to the east. It is comparable in size to the European country of Belgium. According to the U.S...
,
VirginiaThe Commonwealth of Virginia is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" because it is the birthplace of eight U.S. presidents. The geography and climate of the state are shaped by the Blue...
and
DelawareDelaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. The state takes its name from Thomas West, 3rd Baron De La Warr, a British nobleman and Virginia's first colonial governor, after whom Cape Henlopen was originally named.Delaware is located in...
) and the seven others are in the
WestThe Western United States, commonly referred to as the American West or simply "the West," traditionally refers to the region comprising the westernmost states of the United States. Because the U.S. expanded westward after its founding, the meaning of the West has evolved over time...
.
The
southern statesThe Southern United States—commonly referred to as the American South, Dixie, Down South, or simply the South—constitutes a large distinctive region in the southeastern and south-central United States...
had, by far, the lowest median household income, with nine of the country's fifteen poorest states located in the South. However, most of the poverty in the South is located in rural areas. Metropolitan areas such as Atlanta, Nashville, Raleigh-Durham, Birmingham, Dallas, Houston, and Miami, are areas within the southern states that have above average income levels. Overall, median household income tended to be the highest in the nation's most urbanized northeastern, upper midwestern and west coast states, while rural areas, mostly in the southern and mountain states, had the lowest median household income.
Median Household Income by State
http://factfinder.census.gov/servlet/GRTTable?_bm=y&-_box_head_nbr=R1901&-ds_name=ACS_2007_1YR_G00_&-_lang=en&-format=US-30&-CONTEXT=grthttp://factfinder.census.gov/servlet/GRTTable?_bm=y&-_box_head_nbr=R1901&-ds_name=ACS_2008_1YR_G00_&-_lang=en&-format=US-30&-CONTEXT=grt
| Rank |
State |
2008 |
2007 |
2004-2006 |
| 1 |
Maryland |
$70,545 |
$68,080 |
$62,372 |
| 2 |
New Jersey |
$70,378 |
$67,035 |
$64,169 |
| 3 |
Connecticut |
$68,595 |
$65,967 |
$59,972 |
| 4 |
Alaska |
$68,460 |
$64,333 |
$57,639 |
| 5 |
Hawaii |
$67,214 |
$63,746 |
$60,681 |
| 6 |
Massachusetts |
$65,401 |
$62,365 |
$56,236 |
| 7 |
New Hampshire |
$63,731 |
$62,369 |
$60,489 |
| 8 |
Virginia |
$61,233 |
$59,562 |
$55,108 |
| 9 |
California |
$61,021 |
$59,948 |
$53,770 |
| 10 |
Washington |
$58,078 |
$55,591 |
$53,439 |
| 11 |
Delaware |
$57,989 |
$54,610 |
$52,214 |
| |
District of Columbia |
$57,936 |
$54,317 |
|
| 12 |
Minnesota |
$57,288 |
$55,082 |
$57,363 |
| 13 |
Colorado |
$56,993 |
$55,212 |
$54,039 |
| 14 |
Utah |
$56,633 |
$55,109 |
$55,179 |
| 15 |
Nevada |
$56,361 |
$55,062 |
$50,819 |
| 16 |
Illinois |
$56,235 |
$54,124 |
$49,280 |
| 17 |
New York |
$56,033 |
$53,514 |
$48,201 |
| 18 |
Rhode Island |
$55,701 |
$53,568 |
$52,003 |
| 19 |
Wyoming |
$53,207 |
$51,731 |
$47,227 |
| 20 |
Vermont |
$52,104 |
$49,907 |
$51,622 |
| 21 |
Wisconsin |
$52,094 |
$50,578 |
$48,874 |
| |
United States |
$52,029 |
$50,740 |
|
| 22 |
Arizona |
$50,958 |
$49,889 |
$46,729 |
| 23 |
Georgia |
$50,861 |
$49,136 |
$46,841 |
| 24 |
Pennsylvania |
$50,713 |
$48,576 |
$47,791 |
| 25 |
Kansas |
$50,177 |
$47,451 |
$44,264 |
| 26 |
Oregon |
$50,169 |
$48,730 |
$45,485 |
| 27 |
Texas |
$50,043 |
$47,548 |
$43,425 |
| 28 |
Nebraska |
$49,693 |
$47,085 |
$48,126 |
| 29 |
Iowa |
$48,980 |
$47,292 |
$47,489 |
| 30 |
Michigan |
$48,591 |
$47,950 |
$47,064 |
| 31 |
Ohio |
$47,988 |
$46,597 |
$45,837 |
| 32 |
Indiana |
$47,966 |
$47,448 |
$44,806 |
| 33 |
Florida |
$47,778 |
$47,804 |
$44,448 |
| 34 |
Idaho |
$47,576 |
$46,253 |
$46,395 |
| 35 |
Missouri |
$46,867 |
$45,114 |
$44,651 |
| 36 |
Maine |
$46,581 |
$45,888 |
$45,040 |
| 37 |
North Carolina |
$46,549 |
$44,670 |
$42,061 |
| 38 |
South Dakota |
$46,032 |
$43,424 |
$44,624 |
| 39 |
North Dakota |
$45,685 |
$43,753 |
$43,753 |
| 40 |
South Carolina |
$44,625 |
$43,329 |
$40,822 |
| 41 |
Louisiana |
$43,733 |
$40,926 |
$37,943 |
| 42 |
Montana |
$43,654 |
$43,531 |
$38,629 |
| 43 |
Tennessee |
$43,614 |
$42,367 |
$40,676 |
| 44 |
New Mexico |
$43,508 |
$41,452 |
$40,827 |
| 45 |
Oklahoma |
$42,822 |
$41,567 |
$40,001 |
| 46 |
Alabama |
$42,666 |
$40,554 |
$38,473 |
| 47 |
Kentucky |
$41,538 |
$40,267 |
$38,466 |
| 48 |
Arkansas |
$38,815 |
$38,134 |
$37,420 |
| 49 |
West Virginia |
$37,989 |
$37,060 |
$37,227 |
| 50 |
Mississippi |
$37,790 |
$36,338 |
$35,261 |
| |
|
|
|
|
| |
Puerto Rico |
$18,401 |
$17,741 |
|
Median income
The
medianIn probability theory and statistics, a median is described as the number separating the higher half of a sample, a population, or a probability distribution, from the lower half. The median of a finite list of numbers can be found by arranging all the observations from lowest value to highest...
income divides households in the US evenly in the middle with half of all household earning more than the median income and half of all households earning less than the median household income. In 2004 the median household income in the United States was $43,389. According to the US Census Bureau, the median is "considerably lower than the average, and provides a more accurate representation." Considering other racial and geographical differences in regards to household income, it should come as no surprise that the
medianIn probability theory and statistics, a median is described as the number separating the higher half of a sample, a population, or a probability distribution, from the lower half. The median of a finite list of numbers can be found by arranging all the observations from lowest value to highest...
household income varies with race, size of household and
geographyGeography is the study of the Earth and its lands, features, inhabitants, and phenomena. A literal translation would be "to describe or write about the Earth". The first person to use the word "geography" was Eratosthenes...
. The state with the highest median household income in the United States as of the US Census Bureau 2005/06 is
New JerseyNew Jersey is a state in the Mid-Atlantic region of the United States. It is bordered on the north by New York, and to the east by the Hudson River, Upper New York Bay, the Kill Van Kull, Newark Bay, the Arthur Kill, Raritan Bay, Sandy Hook Bay, Westchester County, New York City, Long Island, and...
with $66,752, followed by
MarylandMaryland is a state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia and the District of Columbia to the south and west, Pennsylvania to the north, and Delaware to the east. It is comparable in size to the European country of Belgium. According to the U.S...
,
HawaiiHawaii is the newest of the 50 U.S. states, and is the only state made up entirely of islands. It is located on an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of Australia. The state was admitted to the Union on August...
and
ConnecticutConnecticut is a state in the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and New York to the west and south ....
, making the
Northeastern United StatesThe Northeastern United States is a region of the United States. According to the definition used by the United States Census Bureau, the Northeast region consists of nine states: the New England states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and Connecticut; and the...
the wealthiest area by income in the entire country. In terms of region the median household income was as follows: "
NortheastThe Northeastern United States is a region of the United States. According to the definition used by the United States Census Bureau, the Northeast region consists of nine states: the New England states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and Connecticut; and the...
($47,994),
WestThe Western United States, commonly referred to as the American West or simply "the West," traditionally refers to the region comprising the westernmost states of the United States. Because the U.S. expanded westward after its founding, the meaning of the West has evolved over time...
($47,680) and
SouthThe Southern United States—commonly referred to as the American South, Dixie, Down South, or simply the South—constitutes a large distinctive region in the southeastern and south-central United States...
($40,773)." Median household income in the
Mid-WestThe Midwestern United States is one of the four geographic regions within the United States of America that are officially recognized by the United States Census Bureau....
declined by 2.8% to $44,657. While median household income has a tendency to increase up to four persons per household, it declines thereon after. This indicated that while four person households have larger incomes than those with one, two or three members, households seem to earn progressively less as their size increases beyond four persons. According to the US Census Bureau 2004 Community Survey, two-person households had a median income of $39,755, with $48,957 for three-person households, $54,338 for four-person households, $50,905 for five-person households, $45,435 for six-person households, with seven-or-more-person households having the second lowest median income of only $42,471.. In terms of race, Asian-Americans households had the highest median household income of $57,518, European-American households ranked second with $48,977,
Hispanic or LatinoHispanic is a term that historically denoted a relationship to the ancient Hispania . During the modern era, it took on a more limited meaning, relating to the contemporary nation of Spain....
households ranked third with $34,241. African American or Black households had the lowest median household income of all races with $30,134.
Mean income
Another common measurement of personal income is the mean household income. Unlike the median household income, which divides all households in two halves, the mean income is the average income earned by American households. In the case of mean income, the income of all households is divided by the number of all households. The mean income is usually more affected by the relatively unequal distribution of income which tilts towards the top. As a result, the mean tends to be higher than the median income, with the top earning households boosting it. Overall, the mean household income in the United States, according to the US Census Bureau 2004 Economic Survey, was $60,528, or $17,210 (39.73%) higher than the median household income.
The mean household income for households headed by persons identifying as White alone was $65,317, $40,685 for those headed by persons identifying as
African American or BlackAfrican Americans are citizens or residents of the United States who have origins in any of the black populations of Africa. In the United States, the terms are generally used for Americans with at least partial Sub-Saharan African ancestry...
, $45,871 for those headed by persons identifying as
Hispanic or LatinoHispanic is a term that historically denoted a relationship to the ancient Hispania . During the modern era, it took on a more limited meaning, relating to the contemporary nation of Spain....
, and $76,747 for those households headed by persons identifying as Asian alone. Approximately one third, or 36.5%, of all households earned more than the mean income, while 63.5% earned less than the mean.
See also
- Affluence in the United States
Affluence in the United States refers to an individual's or household's state of being in an economically favorable position in contrast to a given reference group...
- Economy of the United States
The economy of the United States is the largest national economy in the world in both nominal value and by purchasing power parity. Its nominal gross domestic product was estimated as $14.4 trillion in 2008, which is about three times that of the world's second largest economy, Japan Its GDP by...
- Educational attainment in the United States
The educational attainment of the U.S. population is similar to that of many other industrialized countries with the vast majority of the population having completed secondary education and a rising number of college graduates that outnumber high school dropouts. As a whole, the population of the...
- International Ranking of Household Income
Household Income is by and large the most comprehensive measure of a country's citizens material well-being. It includes not just income from employment, but every form of income, including all retirement income, near cash government transfers , and investment gains...
- Income inequality metrics
The concept of inequality is distinct from that of poverty and fairness . Income inequality metrics or income distribution metrics are used by social scientists to measure the distribution of income, and economic inequality among the participants in a particular economy, such as that of a specific...
- Atkinson index
The Atkinson index is a measure of economic income inequality developed by Anthony Barnes Atkinson. The distinguishing feature of the Atkinson index is its ability to gauge movements in different segments of the income distribution.The index can be turned into a normative measure by imposing a...
- Gini coefficient
The Gini coefficient is a measure of statistical dispersion developed by the Italian statistician Corrado Gini and published in his 1912 paper "Variability and Mutability" . It is commonly used as a measure of inequality of income or wealth...
- Hoover index
- Theil index
The Theil index, derived by econometrician Henri Theil, is a statistic used to measure economic inequality.-Mathematics:The formula iswhere is the income of the th person, is the mean income, and is the number of people. The first term inside the sum can be considered the individual's share of...
- List of the poorest places in the United States
- Marriage gap
The marriage gap describes observed economic and political disparities between those who are married and those who are single. The marriage gap can be compared to, and should not be confused with, the gender gap.-Politics and marriage:...
- Personal income in the United States
Personal income is a measure of individual income used by the United States government, particularly the Department of Commerce. It is most often only applied to those who are either above the age of 15, 18, or 25 and are considered to be members of the labor force...
- Poverty in the United States
The most common measure of poverty in the United States is the "poverty threshold" set by the U.S. government. This measure recognizes poverty as a lack of those goods and services commonly taken for granted by members of mainstream society. The official threshold is adjusted for inflation using...
- Social class in the United States
- Median household income in Australia and New Zealand
Median household income is commonly used to measure the relative prosperity of populations in different geographical locations. It divides households into two equal segments with the first half of households earning less than the median household income and the other half earning more.Since 2000...
- Datasets by US State of low income, very low income, extremely low income limits
External links