Income 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 are considerable, since 42% of households now have two income earners. These include the majority of those in the top two quintiles, with incomes exceeding $57,658, [3]
This difference becomes very apparent when comparing the percentage of households with six figure incomes to that of individuals. In 2006, 17.3% of households had incomes exceeding $100,000,[1] compared to slightly less than 6% of individuals.[2] Overall the median household income was $46,326 in 2006 while the median personal income (including only those above the age of 25) was $32,140.[4]
Income inequality in the United States has increased considerably. Between 1979 and 2004, the mean after-tax income of the top percentile increased 167%, versus 69% for the top quintile overall, 29% for the fourth quintile, 21% for the middle quintile, 17% for the second quintile and 6% for the bottom quintile.[5] While wages for women have increased greatly, median earnings of male wage earners have remained stagnant since the late 1970s.[6][7] Household income, however, has risen due to the increasing number of households with more than one income earner and women's increased presence in the labor force.[8] Half of the U.S. population lives in poverty or is low-income, according to U.S. Census data.[9] On the other hand, some members of the U. S. population have earned a considerable income: the top earner in 2011, hedge fund manager John Paulson, earned $4.9 billion, according to Business Insider.[10]
Households | Persons, age 25 or older with earnings | Household income by race or ethnicity | |||||||
---|---|---|---|---|---|---|---|---|---|
All households | Dual earner households |
Per household member |
Males | Females | Both sexes | Asian | Non-Hispanic White | Hispanic (of any race) |
Black |
$46,326 | $67,348 | $23,535 | $39,403 | $26,507 | $32,140 | $57,518 | $48,977 | $34,241 | $30,134 |
Measure | Some High School | High school graduate | Some college | Associate's degree | Bachelor's degree or higher | Bachelor's degree | Master's degree | Professional degree | Doctorate degree |
---|---|---|---|---|---|---|---|---|---|
Persons, age 25+ w/ earnings | $20,321 | $26,505 | $31,054 | $35,009 | $49,303 | $43,143 | $52,390 | $82,473 | $70,853 |
Male, age 25+ w/ earnings | $24,192 | $32,085 | $39,150 | $42,382 | $60,493 | $52,265 | $67,123 | $100,000 | $78,324 |
Female, age 25+ w/ earnings | $15,073 | $21,117 | $25,185 | $29,510 | $40,483 | $36,532 | $45,730 | $66,055 | $54,666 |
Persons, age 25+, employed full-time | $25,039 | $31,539 | $37,135 | $40,588 | $56,078 | $50,944 | $61,273 | $100,000 | $79,401 |
Household | $22,718 | $36,835 | $45,854 | $51,970 | $73,446 | $68,728 | $78,541 | $100,000 | $96,830 |
Bottom 10% | Bottom 20% | Bottom 25% | Middle 33% | Middle 20% | Top 25% | Top 20% | Top 5% | Top 1.5% | Top 1% |
---|---|---|---|---|---|---|---|---|---|
$0 to $10,500 | $0 to $18,500 | $0 to $22,500 | $30,000 to $62,500 | $35,000 to $55,000 | $77,500 and up | $92,000 and up | $167,000 and up | $250,000 and up | $350,000 and up |
Source: US Census Bureau, 2006; income statistics for the year 2005 |