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One indicator of income distribution is the change in average income of each fifth of households. This indicator is affected by—but does not make explicit—the movements of specific households between income groups over time.1 Since 1970 average household income for the top fifth of households increased by 37% while the bottom fifth increased by 12%. The top 5% of households had an even larger increase of 54%. The lower middle fifth shows the lowest increase, only 2%. The middle and upper middle groups, with increases of 6 and 16%, respectively, also gained less than the top fifth. The long-term increase in income disparity for all income groups relative to the top fifth is influenced by many factors, including labor market and social changes.2 When examined over a period of years, income distribution can provide a useful measure of equity from one generation to the next. This intergenerational equity is a central component of sustainable development.
Notes:
1. See “Moving Up and Down the Income Ladder,” by Wilfred Masumura, Current Population Reports, P-70-56, June, 1996. According to unpublished Census data, about 35% of the population experiences an income change of 20% or more each year, and Masumura estimates that three-fourths see their income go either up or down by at least 5%.
2. See “A Brief Look at Postwar U.S. Income Inequality,” by Daniel Weinberg, Current Population Reports, P-60-191, Census Bureau, June, 1996.
Link(s) to be added, when feasible, to data at level of detail suitable
for use at the community level.
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http://www.sdi.gov/indicators/lc_inc_d.htm Last Modified: May 13, 2002 |