Internal
Links
Top
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Outline on Income
Inequality in the US
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External
Links
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- Project: Income Inequality
in the US |
Link
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Income is the amount of money that a person or family receives
over some defined period of time, usually a calendar year |
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Wealth is the total value of everything that a person or a family
owns, minus any debts owed |
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Link
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Table 2 - 3.a Hourly
wages by Occupational Category by Gender in 1997 |
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An analysis of the hourly wages for men & women by occupational
category, shows that women earn less in every category, but in general
they have risen to 74 % of mens' wages from 66 % |
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Link
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Table 2 - 3.b Weekly
wages by Occupational Category by Gender in 2000 |
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An analysis of the weekly wages for men & women by occupational
category, shows that women earn less in every category, but in general
they have risen to 73 % of mens' wages from 66 % |
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Link
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Table 2 - 3.c Hourly
Wages by Educational Level by Gender in 1997 |
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An analysis of the hourly wages for men & women by ed category
shows that women earn less in every category, but in general they have
risen to 74 % of mens' wages from 66 % |
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Link
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Table 2 - 3.d Annual
Income by Educational Level by Gender in 1999 |
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An analysis of the hourly wages for men & women by ed category
shows that women earn less in every category, but in general they have
fallen to 57 % of mens' wages from 66 % |
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Link
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Table 2 - 5.3 Dist
of Families by Income, 1970 - 1992 |
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An analysis of household income over the last 30 yrs indicates that
the dist of income remains approx the same the income gap is increasing |
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Over the long run, there has not been much change in the degree of
inequality in the US but since the 1970s the degree of inequality has increased |
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Looking at the highest level of class achievement demonstrates that
as the highest/lowest class improves, then the lowest/highest class does
worse |
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Figure 2 - 2 The Gini Index |
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The Gini Index demonstrates, graphically, that income inequality
has steadily increased in the US since the late 1960s |
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Income inequality was reduced in the 30s & early 40s due to depression
reforms, i.e. redistribution of income & deficit financing |
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WW II also reduced income inequality, during which the top fifth had
their income reduced dramatically |
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There was a slight decrease in income inequality btwn 1947 & 1975
due to the War on Poverty & other social programs to help the
poor in the 70s |
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During the War on Poverty, income for the bottom fifth increased &
income to the top fifth decreased |
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Since 1980 there has been a significant increase in inequality due
to tax reform, welfare reform, & decrease of govt regs &
thus the top of the population has increased its share while the bottom
has lost its share |
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Over the long run, there has not been much change in the degree of
inequality in the US, but since the mid 1970s, the last 25 yrs., the degree
of inequality has increased |
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Link
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Figure 2-3 Income
Gains & Losses, 1980-1989 |
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An analysis of the Income Gains & Losses from 1980-1989 demonstrates
that the very rich have gained enormously while the very poor have lost
enormously |
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Link
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Figure 2-3.3 Change
in Employment by Wage Category, 1963-86 |
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An analysis of the Change in Employment by Wage Category from 1963
to 1986 demonstrates that
- in the 60s, the number of low paid jobs shrank
- in the 60s, high paid jobs grew
- in the early 80s, low paid jobs grew
- in the early 80s, high paid jobs grew, but at a slower rate
than low paid jobs
Furthermore, in the 80s, 55 % of new jobs paid at or below the poverty
level |
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The
regularity
or consistency in income distribution
demonstrates
that social forces are at work & that there is little or no vertical
social mobility & that income distribution among the classes is relatively
fixed |
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The causes of income inequality in the US are linked to two social
changes in political policies & in the US & world econs |
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1. Changes in
political policies caused an increase
in income inequality as:
- the total tax load was reduced for the wealthy
- the total tax load was increased for the poor |
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In the 80s, transfer payments were cut when unemployment was taxed
& the amt & availability of AFDC was cut |
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2. Changes in the the US & world economies
caused an increase in income inequality |
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As a result in changes in the US & world economies,
- the number of middle paying jobs has declined
- the number of the highest & lowest paid jobs has increased
- the 3rd world has decreased subsistence living & increased low
level mfr
- from 1979 to 1986 55 % of new jobs paid at or below the poverty level |
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During the 1990s half the new jobs have been in the higher income levels
In the 1990s mid level paying jobs continue to decrease in number
In the 1990s the number of the lowest paid jobs continue to increase |
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Link
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Table of Distribution
of Household by Income in 1991 |
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An analysis of the Distribution of Household by Income in 1991
shows that 90 % of household earn under $ 75 K while 10 % earn over $ 75
k |
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Link
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Table on All Households
Share
of Aggregate Income in 1991 |
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An analysis of all Households Share of Aggregate Income in 1991
shows that the bottom 80 % ( i.e. 4/5's ) earn approximately the same amount
as the top 20 % |
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Link
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Table on All Households
Average
Income in 1991 |
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An analysis of all Households
Average Income in 1991 shows that,
on
average the lowest 80 % of the population earn less than half ( i.e.
43 % ) of the highest 20 % and about one quarter ( i.e. 27 % ) of
the highest 5 % |
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The median family income in the US in 1990 is $35,000 |
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The median family income in the US in 2000 is $51,000 |
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The median income for unmarried adults who are not living with their
parents in 1990 is $15,000 |
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The median income for unmarried adults who are not living with their
parents in 2000 is $22,000 |
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An Analysis of Family Income of the Upper
Class ( 20 % & 5 % of the population )
by the Official Guide to American Incomes, 1993 |
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Link
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Table on Distribution
of Families by Income in 1991 |
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An analysis of the Distribution of Household by Income in 1991
shows that 80 % of household earn under $ 75 K while 10 % earn over $ 75
k |
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Link
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Tables on All Families Share
of Aggregate Income in 1991 |
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An analysis of all Families
Share of Aggregate Income in 1991
shows that the lowest 80 % earn about the same share of US income as the
top 20 % |
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Link
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Table on All Families Average
Income in 1991 |
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An analysis of all Families
Average Income in 1991 shows that,
on
average the lowest 80 % of the families earn less than half ( i.e.
45 % ) of the highest 20 % and about one quarter ( i.e. 29 % ) of
the highest 5 % |
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Link
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Conclusion on Income Inequality:
In 1991, the upper 1/5
- has a share of income that is about the same as the rest of
the population
- earns on average about $ 100 k while the average of
the total population is about $ 38 k
- earns on average about 2.6 times the average of the
total population
- the upper 5 % has a 20 % share of the income & earns on average
$ 141 k
- the distribution of wealth is more unevenly distributed than
income |
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Table
2 - 3.a Hourly wages by
Occupational Category by Gender in 1997
Kerbo0402
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Median Income
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Male
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Female
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Female's
% of Male
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Exec, admin & mgr |
$ 22
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16
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72 %
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Professional |
23
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17
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77
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Tech, sales, admin support |
18
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14
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75
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Sales |
15
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10
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63
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Admin support & clerical |
13
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10
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81
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Precision production & craft |
14
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11
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75
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Operators & laborers |
11
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8
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75
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Laborers |
9
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NA
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NA
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Kerbo0402
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blank
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Average
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74
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Table
2 - 3b Median Weekly Wages
by Occupational Category by Gender in 2000
Kerbo0502
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Median Income
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Male
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Female
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Female's
% of Male
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Exec, admin & mgr |
$ 1,014
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686
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68 %
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Professional |
977
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725
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74
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Tech, sales, admin support |
655
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452
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69
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Sales |
685
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407
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59
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Admin support & clerical |
563
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499
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89
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Precision production & craft |
628
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445
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72
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Operators & laborers |
487
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351
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72
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Laborers |
394
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320
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81
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Kerbo0502
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blank
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Average
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73
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Table
2 - 3c Wages by Educational
Level by Gender in 1997
Kerbo0402
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Median Income
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Male
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Female
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Female's
% of Male
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Advanced degree |
$ 27
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$ 21
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78 %
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Bachelors |
21
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16
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74
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Some college |
14
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11
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78
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High school grad |
12
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9
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76
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Less than high school grad |
9
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7
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77
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Kerbo0402
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Average
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77
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Table
2 - 3d Median Annual
Income by Educational Level by Gender in 1999
Kerbo0502
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Median Income
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Male
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Female
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Female's
% of Male
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Advanced degree |
$ 81,934
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$ 45,510
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56 %
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Bachelors |
47,325
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28,594
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60
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Some college |
32,724
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19,665
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60
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High school grad |
27,240
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14,695
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54
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Less than high school grad |
17,707
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9,625
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54
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Kerbo0502
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Average
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57
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Table
2 - 3d Median Annual
Income by Educational Level by Gender in 1999
Kerbo0502
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Median Income
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Male
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Female
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Female's
% of Male
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Advanced degree |
$ 81,934
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$ 45,510
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56 %
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Bachelors |
47,325
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28,594
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60
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Some college |
32,724
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19,665
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60
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High school grad |
27,240
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14,695
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54
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Less than high school grad |
17,707
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9,625
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54
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Kerbo0502
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Average
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57
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Table
2 - 5.3 Distribution of Families
by Income, 1967 - 1992
Kerbo0302
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% Distribution
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Median Income
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Mean Income
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all races
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Number of Families
in the 1,000s
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Under
$5
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5
to
10
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10
to
15
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15
to
25
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25
to
35
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35
to
50
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50
to
75
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75
to
100
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x100x
&
over
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2003
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51,000
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1997
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1992
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68,144
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3.7
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5.8
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7.3
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15.5
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15.0
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19.2
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19.6
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7.7
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6.2
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36,812
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44,483
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1991
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67,173
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3.5
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5.9
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7.0
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15.6
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15.2
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19.6
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19.2
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7.8
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6.2
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37,021
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44,539
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1990
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66,322
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3.2
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5.4
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6.7
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15.4
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15.2
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20.0
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19.4
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8.2
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6.6
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37,950
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45,785
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1989
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66,090
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3.0
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5.3
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7.1
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14.8
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14.6
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19.7
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20.1
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8.4
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7.0
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38,710
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46,962
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1988
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65,837
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3.2
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5.5
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6.8
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15.4
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14.7
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19.9
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20.0
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8.1
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6.5
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38,177
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45,788
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1987
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65,204
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3.1
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5.7
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6.7
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15.3
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14.8
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20.0
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20.3
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8.0
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6.3
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38,249
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45,553
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1986
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64,491
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3.2
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5.7
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6.8
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15.5
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15.3
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20.1
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19.9
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7.6
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6.0
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37,709
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44,707
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1985
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63,558
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3.2
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6.1
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7.2
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16.1
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15.7
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20.1
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19.3
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7.1
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5.1
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36,164
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42,956
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1984
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62,706
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3.4
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6.0
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7.7
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16.1
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15.8
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20.3
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19.2
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6.8
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4.8
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35,693
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41,931
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1983
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62,015
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3.6
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6.3
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7.7
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16.6
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16.3
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20.6
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18.4
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6.2
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4.4
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34,757
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40,597
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1982
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61,393
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3.4
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6.2
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7.9
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16.9
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16.6
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21.0
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18.0
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6.0
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4.1
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34,390
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40,198
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1981
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61,019
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2.9
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5.9
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7.6
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17.4
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16.5
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21.4
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18.4
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6.4
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3.5
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34,862
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40,234
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1980
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60,309
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2.6
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5.7
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7.4
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16.5
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16.8
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21.8
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19.2
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6.3
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3.7
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35,839
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40,869
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1979
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59,550
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2.4
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5.3
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6.9
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16.4
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15.8
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22.5
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19.9
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6.6
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4.2
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37,136
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42,310
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1978
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57,804
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2.4
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5.3
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7.4
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16.3
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16.0
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22.6
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19.9
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6.1
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4.0
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36,665
|
41,760
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1977
|
57,215
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2.4
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5.5
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7.9
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16.6
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16.9
|
22.5
|
19.0
|
5.7
|
3.5
|
35,539
|
40,545
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1976
|
56,710
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2.2
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5.7
|
8.0
|
16.8
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17.0
|
23.5
|
18.5
|
5.2
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3.2
|
35,330
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39,846
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1975
|
56,245
|
2.3
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5.9
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8.3
|
17.4
|
17.8
|
23.1
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17.5
|
4.7
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2.9
|
34,249
|
38,810
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1974
|
55,698
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2.3
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5.3
|
7.8
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16.7
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18.4
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22.8
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18.4
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5.3
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3.1
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34,878
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39,768
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1973
|
55,053
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2.1
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5.5
|
7.5
|
16.3
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17.5
|
23.5
|
18.8
|
5.5
|
3.4
|
35,821
|
40,491
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1972
|
54,373
|
2.3
|
5.8
|
7.3
|
16.6
|
18.6
|
23.0
|
17.9
|
5.3
|
3.2
|
35,126
|
39,894
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1971
|
53,296
|
2.6
|
6.2
|
7.5
|
17.8
|
19.7
|
23.2
|
16.0
|
4.5
|
2.4
|
33,480
|
37,705
|
1970
|
52,227
|
2.7
|
5.9
|
7.5
|
17.4
|
20.2
|
23.1
|
16.3
|
4.3
|
2.5
|
33,519
|
37,728
|
1969
|
51,586
|
2.6
|
6.0
|
7.5
|
17.0
|
20.0
|
24.4
|
16.1
|
4.0
|
2.4
|
33,590
|
37,664
|
1968
|
50,823
|
2.9
|
5.9
|
8.1
|
18.2
|
21.3
|
23.6
|
14.6
|
3.4
|
2.0
|
32,124
|
35,987
|
1967
|
50,111
|
3.1
|
7.2
|
7.9
|
19.4
|
22.6
|
21.8
|
12.8
|
3.3
|
2.0
|
30,661
|
34,016
|
Figure 2 - 2 The Gini Index: Household income Inequality,
1967 - 1997
Figure
2-3 Income Gains & Losses, 1980-1989
PW
|
Lowest 20 %
|
Second 20 %
|
Middle 20 %
|
Fourth 20 %
|
Top 10 %
|
Top 5 %
|
Top 1 %
|
- 4.6 %
|
- 4.1 %
|
- 0.8 %
|
+ 4.6 %
|
+ 9.1 %
|
+ 15.6 %
|
+ 62.9 %
|
Figure
2-3.3 Change in Employment by Wage Category,
1963-86
Kerbo0302
|
Low Wage Wkrs
11,103 & under
|
Middle Wage Wkrs
$11,104 - 44, 412
|
High Wage Wkrs
$ 44, 413 & above
|
1963 -
1973
|
1973 -
1979
|
1979 -
1986
|
1963 -
1973
|
1973 -
1979
|
1979 -
1986
|
1963 -
1973
|
1973 -
1979
|
1979 -
1986
|
- 10 %
|
85
|
22
|
20
|
77
|
6
|
38
|
50
|
15
|
Table
of Distribution of Household by Income in 1991
GuideAmInc93p2
|
Median Income
$ 30.1 k
|
89.6% of households earn
under $ 75 k
|
6.0 % of households earn
$ 75 k to $ 100 K
|
4.4 % of households earn
over $ 100 k
|
Table
on All Households Share of Aggregate Income in 1991
GuideAmInc93p6
|
Lowest 80 % of Households
earn 53.5 % of income
|
Highest 20 % of Households
earn 46.5 % of income
|
Highest 5 % of Households
earn 18.1 % of income
|
Table
on All Households Average Income in 1991
GuideAmInc93p10
|
All Households
average $ 37, 922
|
Highest 20 % of Households
average $ 88,130
|
Highest 5 % of Households
average $ 137,532
|
Table
on Distribution of Families by Income in 1991
GuideAmInc93p18
|
80 % of Families earn $ 0 to $ 75 k
w/ a median of $ 35,939
|
The top 20 % earn btwn $ 75 k to $ 100 k
|
The top 5 % earn over $ 100 k
|
Table
on All Families Share of Aggregate Income
in 1991
GuideAmInc93p22
|
Lowest 80 % of Families
earn 55.8 % of income
|
Highest 20 % of Families
earn 44.2 % of income
|
Highest 5 % of Families
earn 17.1 % of income
|
Table
on All Families Average Income in 1991
GuideAmInc93p26
|
All Families
average $ 43,237 in income
|
Highest 20 % of families
average $ 95,530 in income
|
Highest 5 % of families
average $ 147,817 in income
|
|