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American Incomes: Demographics of Who Has Money by New Stragetist Editors

By New Stragetist Editors

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Behind the income gap are differences in household composition (black households are less likely to be headed by married couples) and education (Asian householders are by far the best educated). Although household incomes fell between 2000 and 2002, they are still above their 1990 and 1980 levels regardless of race or Hispanic origin. Since 1990, black households have enjoyed the greatest income growth—a 17 percent increase, after adjusting for inflation. The median income of Hispanic households rose 11 percent during those years, while that of non-Hispanic whites was up 10 percent and that of Asians just 2 percent.

5 percent. The biggest losers have been householders with only a high school diploma. Their incomes fell nearly 7 percent between 2000 and 2002, after adjusting for inflation. 6 percent decline. Householders with a professional degree, who have the highest median (more than $100,000 in 2002), saw their incomes fall 4 percent between 2000 and 2002 as managed care curbed the earnings of physicians. ■ Because an investment in education usually provides substantial monetary rewards, a growing proportion of adults will pursue a college degree.

Html; calculations by New Strategist 36 AMERICAN INCOMES: Demographics of Who Has Money HOUSEHOLD INCOME, 2002 Household Income, 2002 AMERICAN INCOMES: Demographics of Who Has Money 37 Dual-Earner Married Couples Dominate Affluent Households Householders aged 35 to 54 account for the majority of those with incomes in the top 5 percent. By examining the characteristics of households within income quintiles, or fifths, the requirements of affluence become apparent. Married couples head fully 80 percent of households in the top fifth of the income distribution—those with household incomes of $84,016 or greater in 2002.

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