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Household income in the United States

2007 Schools Wikipedia Selection. Related subjects: Economics

   This graphic shows the distribution of gross annual household income.
   The building's thirty exposed floors are easily divided into quintiles,
   each income quintile represented by six floors. Each floor represents
   the tenth of a third (3.33%) of households in the US, and each section
   of 10 floors represent roughly one third of American society. The
   floors above the top black line represent those households with incomes
   of or exceeding $100,000. The floors below the bottom black line,
   however, represent those households who fell below the poverty
   threshold. In order to live on the top floor of the American income
   strata, a household's annual gross income needs to exceed $200,000.
   Enlarge
   This graphic shows the distribution of gross annual household income.
   The building's thirty exposed floors are easily divided into quintiles,
   each income quintile represented by six floors. Each floor represents
   the tenth of a third (3.33%) of households in the US, and each section
   of 10 floors represent roughly one third of American society. The
   floors above the top black line represent those households with incomes
   of or exceeding $100,000. The floors below the bottom black line,
   however, represent those households who fell below the poverty
   threshold. In order to live on the top floor of the American income
   strata, a household's annual gross income needs to exceed $200,000.

   The Household income in the United States is a measure of private
   wealth commonly used by the United States government and private
   institutions. To measure the income of a household, the pre-tax
   earnings of all residents over the age of 15 are combined. The
   residents of the household do not have to be related to the householder
   for their earnings to be considered part of the household's income. The
   use of household income is often seen as the most dependable measure of
   personal wealth, as people tend to live in households that include
   other wage earners besides themselves. In 2004, the median annual
   household income according to the US Census Bureau was determined to be
   $43,389, nearly identical to that of Canada which was roughly $41,510
   (USD) in the year 2000. The median income per household member
   (including all working and non-working members above the age of 14) in
   the year 2003 was $23,535. In the year 2005, there were approximately
   113,146,000 households in the United States. 15.73% of all households
   had annual incomes exceeding $100,000, while another 12.7% fell below
   the federal poverty threshold. While the aggregate income distribution
   tends to tilt towards the top with the top 6.37% earning roughly one
   third of all income, it is important to note that the those with
   upper-middle incomes controlled an even greater share of the total
   earned income. Households with moderately high middle class incomes
   ranging from $50,000 to $100,000 a year, represented 29.2% of all
   households, yet earned a far greater share (c.a. 40%) of all income.

   The 2005 economic survey also found that households in the top two
   income quintiles, those with an annual household income exceeding
   $55,331, had a mean of two income earners while those in the lower
   quintiles (2nd and middle quintile) had mean of only one income earner
   per household. Due to high unemployment among those in the lowest
   quintile the mean number of income earners for this particular group
   was determined to be zero. Overall the United States followed the trend
   of other industrialized countries with a relatively large population of
   relatively affluent households outnumbering the poor. Among those
   in-between the relative extremes of the income strata a large and quite
   powerful section 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 44% since 1990
   it has decreased very slightly when considering inflation. In 1990, the
   median household income was determined to be $30,056; $44,603 in 2003
   dollars. In 2003, the median household income was, however, only
   $43,389, showing a slight decrease.

Income at a glance

Income distribution

   This graph shows the percentage of the population per Income groups in
   $10,000 increments.
   Enlarge
   This graph shows the percentage of the population per Income groups in
   $10,000 increments.

   The following table illustrates the number and percentage of households
   in each of the income groups designated by the US Census Bureau.
   Households with annual income of less than $25,000, constituted 28.22%
   of all households, while households with incomes between $25,000 and
   $50,000 represented 23.25% of the population. Those with incomes
   ranging from $50,000 to $100,000 who were the largest income group
   constituted 29.2% of all households, while those with six figure
   incomes, represented the smallest income group, constituting only
   15.82% of all households. Overall the number of households decreased as
   income went up. While 28.22% of households had annual incomes of less
   than $25,000, only 10.93% of households with gross annual incomes
   ranging from $75,000 to $100,000. It should be noted, however, that the
   top two quintiles have on average twice as many incomes earners per
   households as the second and middle quintile.
   The above graph shows the percentage earning the amount shown on the
   graph or more.
   Enlarge
   The above graph shows the percentage earning the amount shown on the
   graph or more.
   This graph shows the lower limits for the four income quintiles and the
   top 5%.
   Enlarge
   This graph shows the lower limits for the four income quintiles and the
   top 5%.
   This graph shows the percentage of the total population in each of the
   income groups shown.
   Enlarge
   This graph shows the percentage of the total population in each of the
   income groups shown.
   Income range Number of households (in thousands) Percent Cumulative
   percentages
   Under $2,500 2,566 2.26 less than $25k
   28.22% less than $50k
   54.98% less than $100k
   84.18%
   $2,500 to $4,999 1,389 1.22
   $5,000 to $7,499 2,490 2.20
   $7,500 to $9,999 3,360 2.96
   $10,000 to $12,499 4,013 3.54
   $12,500 to $14,999 3,543 3.13
   $15,000 to $17,499 3,760 3.32
   $17,500 to $19,999 3,438 3.03
   $20,000 to $22,499 4,061 3.58
   $22,500 to $24,999 3,375 2.98
   $25,000 to $50,000
   $25,000 to $27,499 3,938 3.48 $25k-$50k
   23.25%
   $27,500 to $29,999 2,889 2.55
   $30,000 to $32,499 3,921 3.46
   $32,500 to $34,999 2,727 2.41
   $35,000 to $37,499 3,360 2.96
   $37,500 to $39,999 2,633 2.32
   $40,000 to $42,499 3,378 2.98
   $42,500 to $44,999 2,294 2.02
   $45,000 to $47,499 2,700 2.38
   $47,500 to $49,999 2,371 2.09
   $50,000 to $75,000
   $50,000 to $52,499 3,071 2.71 $50k-$75k
   18.27% $50k-$100k
   29.2%
   $52,500 to $54,999 2,006 1.77
   $55,000 to $57,499 2,420 2.13
   $57,500 to $59,999 1,786 1.57
   $60,000 to $62,499 2,566 2.26
   $62,500 to $64,999 1,774 1.56
   $65,000 to $67,499 2,101 1.85
   $67,500 to $69,999 1,637 1.44
   $70,000 to $72,499 1,978 1.74
   $72,500 to $74,999 1,413 1.24
   $75,000 to $100,000
   $75,000 to $77,499 1,802 1.59 $75k-$100k
   10.93%
   $77,500 to $79,999 1,264 1.11
   $80,000 to $82,499 1,673 1.47
   $82,500 to $84,999 1,219 1.07
   $85,000 to $87,499 1,418 1.25
   $87,500 to $89,999 984 0.86
   $90,000 to $92,499 1,282 1.13
   $92,500 to $94,999 917 0.81
   $95,000 to $97,499 1,023 0.90
   $97,500 to $99,999 846 0.74
   $100,000 or more
   $100,000 to $149,999 11,194 9.89 $100k or more
   15.82%
   $150,000 to $199,999 3,595 3.17
   $200,000 to $249,999 1,325 1.17
   $250,000 and above 1,699 1.50

   SOURCE: US Census Bureau, 2005

Quintiles

   Percent of households according to income group.
   Enlarge
   Percent of households according to income group.

   Households in the United States are often divided into quintiles
   according to their gross income. The 2005 Current Population Survey
   conducted by the US Census Bureau determined the following lower
   limits, and average numbers of income earners per household for each of
   the American income quintiles. All quintiles had roughly the same
   number of households, ca. 22,629,000. In addition the top 5%, those
   with incomes exceeding $157,000 annually, are often shown as a separate
   group. In 2005 the lower threshold for the top fifth was $88,030, the
   lower threshhold for the fourth quintile was $55,331, while the bottom
   quintile consisted of those households with an annual income of less
   than $18,500.
   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 (X) (X) $18,500 $34,738 $55,331 $88,030 $157,176
   Mean number of income earners 1 0 1 1 2 2 2

   SOURCE: US Census Bureau, 2004

Type of household

   There is a strong correlation between the type of household, the manner
   of living arrangement and household income. Families, especially those
   with two income earners outearned non-family households. As one would
   expect, homeowners also outearned renters. Yet nearly half of all
   households in the lowest quintile were homeowners. The vast majority of
   households in the top quintile, 88.35%, were family households. Married
   couple families with a mean of two income earners constituted 80.8% of
   all households in the top quintile. In the lowest quintile, on the
   other hand, family households constituted a less than half, 41.3%, of
   the total number of households. Consequently, the percentage of
   non-family households was highest in the lowest quintile with 55.57%.
   Non-family household only compromised 34.9% of all households in the
   second lowest quitnile and only 6.31% in the top quintile. Overall over
   a third of non-family households in the United States, 36.9%, had
   annual household incomes of less than $25,000 and were thereby part of
   the bottom quintile. This supports the common belief that families,
   especially those with two incomes, have far higher annual incomes than
   non-family households, the majority of whom fall into the lowest two
   quintiles. Families headed by males with no wife present also had
   significantly higher incomes than similar households headed by females.
   While 37.93% of families with a male householder and no wife present
   had incomes exceeding $55,331 only 21.27% of family households headed
   by a female had incomes in the top two quintiles.
   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 (X) (X) $18,500 $34,738 $55,331 $88,030 $157,176
   Mean 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 (of any race)
   Family households 68.06% 41.06% 59.97% 70.04% 80.87% 88.35% 90.61%
   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%
   Non-family households 31.93% 58.92% 40.02% 29.96% 19.12% 11.64% 9.36%

   SOURCE: US Census Bureau, 2004

Race

   Despite great advances made to lift minorities out of poverty and many
   African Americans and Latino Americans joining the middle class, there
   is still an uneven racial distribution among the income quintiles.
   While White American who were not of Hispanic descent 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 households 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 idenitified 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-Americans 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.
   This chart shows the median household income for the four largest
   racial groups in the United States.
   Enlarge
   This chart shows the median household income for the four largest
   racial groups in the United States.
   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 12,818 3,023 3,130
   2,763 1,931 1,334 269
   Percentage 11.33% 13.56% 13.83% 12.20% 8.53% 5.89% 1.19%

   SOURCE: US Census Bureau, 2004

Education and gender

   This graph shows the median household income in accordance with the
   householder's educational attainment. The data only applies to
   household with a householder over the age of twenty-five.
   Enlarge
   This graph shows the median household income in accordance with the
   householder's educational attainment. The data only applies to
   household with a householder over the age of twenty-five.

   Household income as well as per capita income in the United States rise
   significantly as the educational attainment 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 bonus of $17,428." According
   to the US Census Bureau persons with |doctorates 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
   degree had an average income of $109,600 while those with a Master's
   degree had an average income of $62,300. Overall "…[a]verage earnings
   ranged from $18,900 for high school dropouts to $25,900 for high school
   graduates, $45,400 for college graduates and $99,300 for workers with
   professional degrees (M.D., J.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 income exceeding the median
   household income of married couple families among the general
   population ($63,813). Higher educational attainment did not, however,
   help close the income gap between the genders as the life-time earnings
   for a male with a professionals degree were roughly forty percent
   (39.59%) higher than those of a female with a professionals degree. The
   life-time earnings gap between males and females was the smallest for
   those individuals holding an Associate degrees with male life-time
   earnings being 27.77% higher than those of females. While educational
   attainment did not help reduce the income inequality between men and
   women, it did increase the earnings potential of individuals of both
   sexes, greatly enabling many households with (a) graduate degree
   householder(s) to enter the top household income quintile.

   Household income also increased significantly with the educational
   attainment of the householder. The US Census Bureau publishes
   educational attainment 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 degree, with the latter making $23,874. more. Income
   also increased substantially with increased post-secondary education.
   While the median household income for a household with a household
   holding an Associates degree was $51,970, the median household income
   for those 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 higher than that for those at the Master's degree
   level, but $3,170 lower than the median for households with a
   professionals 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
   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
   This graph shows the median household income in 2003 dollars according
   to educational attainment.
   Enlarge
   This graph shows the median household income in 2003 dollars according
   to educational attainment.

   The change in median personal and household since 1991 also varied
   greatly with educational attainment. While, both the overall median
   personal and household icome increased since 1991, this increase did
   not take place on all levels of educational attainment. The overall
   income increased over the course of the 1990s, reaching its high in
   1999, but decreasing has been ever since. In 1991 the median household
   income in the US was $40,873 in 2003 dollars, while the median
   household income in 2003 was $45,016. In 1999, however, the median
   household income was $46,236, 2.7% higher than today. While this trend
   held true for all levels of educational attainment the extend of
   chorinical falcutations in income were greatly influenced by
   educational attainment. Overall the median household and personal
   income decreased for those with more than a 9th grade education but
   less than a four-year college degree since 1991. In other words, the
   median household income decreased for households and individuals at the
   high school drop-outs and graduate, some-college, and an Associates
   degree level. Income did, however, increase for those with a Bachelor's
   degree or more. 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.
   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 $45,300 $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 $51,970 $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

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. 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 compromised of those household
   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. Overall all households in the United
   States earned roughly $4,286,391 million in 2005 (4.3 trillion).
   Roughly one third, 32.5%, of all income in the US was earned by those
   households with an income over $150,000, approximately the top five
   percent. Approximately one fifth, 20.58%, of all income was earned by
   the top 2.67%, those households earning more than $200,000 a year.
   Overall the aggregate income distributing tilts toward the top, despite
   the fact that households with middle-range annual incomes ranging from
   $50,000 to $75,000 earned roughly one fourth, 25.11% of all income. As
   the percentage of middle-range income households is roughly one-fourth
   of the population, this particular income group's share of income is
   roughly equal to their representation in the general population. The
   bottom 6.37%, however only earned 0.27% of all income.
   Aggregate income distribution, 2005
   Percentage of the total income earned by each income group
   10% 20% 30% 40%
   less than $25,000 6.76%
   $25,000 to $50,000 18.12%
   $50,000 to $75,000 22.54%
   $75,000 to $100,000 20.00%
   $150,000 or more 32.58%


   SOURCE: US Census Bureau, 2005

Household income over time

   Please note that all figures are presented in 2003 dollars.
   This graph shows the income of the given percentiles from 1967 to 2003,
   in 2003 dollars.
   Enlarge
   This graph shows the income of the given percentiles from 1967 to 2003,
   in 2003 dollars.

   Since 1967, the median household income in the United States has risen
   modestly, fluctuating several times. Even though personal income has
   risen substantially and 42% of all household now have two income
   earners, the median household income has increased only slightly.
   According to the US Census Bureau, this paradoxial set of trends is due
   to the changing structure of American households. For example, while
   the proportion of wives working year-round in married couple households
   with children has increased fron 17% in 1967 to 39% in 1996, the
   proportion of such households among the general population has
   decreased. Thus, while married couple households with children are the
   most economically prosperous type of household in the United, their
   share of the population has been dwindeling in the United States. In
   1969, more than 40% of all households consisted of a married couple
   with children. By 1996 only a rough quater of US households consisted
   of married couples with children. As a result of these changing
   household demographics, median household income rose only slighly
   despite an ever increasing female labor force and a considerable
   increase in the percentage of college graduates.


   Household income in the United States

     "From 1969 to 1996, median household income rose a very modest 6.3
    percent in constant dollars... The 1969 to 1996 stagnation in median
    household income may, in fact, be largely a reflection of changes in
    the size and composition of households rather than a reflection of a
             stagnating economy."- John McNeil, US Census Bureau


   Household income in the United States

   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
   recession, while increases are visible during economic upturns. These
   flactuations were felt across the income strata as the incomes of both,
   the 95th and 20th percentile were affected by flactuations in the
   economy. Yet, it is important to note that income in the period between
   1967 and 1999 grew 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 quitile) rose by only 28% from $14,002
   to $17,984. One should note that ht 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.
   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

   While many industrialized countries of similar wealth as the United
   States such as Germany, Denmark, or Norway do not offer median
   household income statistics, England and Canada do use a comparable
   measure of median household income. Yet another difficulty one needs to
   consider in international comparisions is the varing exchange rate of
   currencies. For example while 79 Euro cents (0.79 Euros) equal roughly
   100 US dollar cents (1 US dollar) on September 13, 2006 the exchange
   rate might look different on another date. Of course the actual
   standard of living and of an individual is not well reflected in
   converted amounts as domestic purchasing power does not change with
   currency fluctuation for the differences in exchange rates. In other
   words the median households income of a household in the European Union
   did not increase in comparison to the American median household income,
   despite the Euro now being valued higher than the dollar. One can,
   however, use converted income amounts to give a rough idea of the
   median household income in foreign countires as compared to that of the
   United States.

   In Canada and rural England the median household income was roughly the
   same as in the United States. In Canada the median household income was
   determined to be roughly $41,000 according to the exchange rate in
   early July 2006. In the fiscal year 2004/05 the median household income
   in rural England was determined to be £20,600, the highest of any
   region in the United Kingdom. On September 13, 2006 this amount
   equalled roughly $39,000. While the median household income in England
   was overall slightly lower than in the United States, one exception was
   London where the mean (not median) household income was £38,586 or
   $72,330. One again needs to remember that these comparions are more
   than rough due to the nature of currency conversion. Furthermore due to
   the implications caused by difference between the income distribution
   in "wellfare states" such as England and Canada, are not considered.
   Again these figures give only a rough idea as they may change
   dramatically with the manner in which currencies are converted.

   However, when using PPP converted statistics, through the Big Mac
   Index, one will see that the pound in reality should be at $1.63
   according to the latest index . Thus, when using the same statistics
   above, the real median household income for urban England is actually
   $28,832, while the rural income is $32,960. Compared with households in
   the U.S. (with a median household income of $46,300), English
   households are not nearly as wealthy as their U.S. counterparts. Urban
   English households (using the above statistics) are 38% less wealthy,
   while rural English households are 29% less wealthy. London's mean
   household income is $61,737 using PPP, which is very similar to the
   U.S. mean household income. In fact, The median (not mean) income of
   New Jersey is roughly $61,672 . Again it is important that these
   figures vary dramatically with the manner in which currencies are
   converted. Yet one can conclude that the household income in the United
   States is slightly higher than that of Canada and quite a bit higher
   than that of England.

Income by state

   An average California home in Salinas, CA. In 2004, California was the
   most expensive state in the nation and had a median household income of
   $49,894 (rank 13).
   Enlarge
   An average California home in Salinas, CA. In 2004, California was the
   most expensive state in the nation and had a median household income of
   $49,894 (rank 13).
   This map shows the bottom fifteen states according to median household
   income.
   Enlarge
   This map shows the bottom fifteen states according to median household
   income.
   This map shows those states whose median household income is below the
   national median.
   Enlarge
   This map shows those states whose median household income is below the
   national median.

   The median household income by state ranged from $32,589 or 26.7% below
   national median, in West Virginia to $57,352 or 29% above national
   median, in New Hampshire. Connecticut, which is often referred to as
   the nation's wealthiest state, came in at number four with a median
   household income of $55,970. California which had the highest median
   home price in the nation. where home prices have far outpaced incomes
   only ranked number thirteen with a median household income of $49,894.
   While California's median income was not near enough to afford the
   average California home or even a starter home, West Virginia, which
   had the nation's lowest median household income also had the nation's
   lowest median home price. The northeastern states, more specifically
   those located in New England, as well as the western states had the
   highest median household income. Of the top fifteen states, all were
   located in the Northeast and West, with the sole exception of Minnesota
   which ranked fifth. The southern states had the by far lowest median
   household income with nine out of the country's fifteen poorest states
   being located in the South. It should be noted, however, that New York,
   Pennsylvania and the District of Columbia also fell below the national
   median. Overall, median household income tended to be the highest in
   nation's most urbanized northeastern, north mid-western and western
   States, while rural and mostly southern states had the lowest median
   household income.
   State Rank Median household income +/- national average Change
   1999-2005 (inflation adjusted)
   New Hampshire 1 57,352 +12,879 -2%
   New Jersey 2 56,772 +12,299 -4.5%
   Maryland 3 56,763 +12,290 -0.5%
   Connecticut 4 55,970 +11,497 -3.5%
   Minnesota 5 55,914 +11,441 -5.7%
   Alaska 6 54,627 +10,154 -6.9%
   Virginia 7 53,275 +8,802 -0.8%
   Hawaii 8 53,123 +8,650 -0.4%
   Massachusetts 9 52,354 +7,881 -3.3%
   Colorado 10 51,022 +6,549 -8.4%
   Utah 11 50,614 +5,691 -10.5%
   Delaware 12 50,152 +5,679 -5.4%
   California 13 49,894 +5,421 -3.6%
   Washington 14 48,688 +4,215 -8.1%
   Wisconsin 15 47,220 +2,747 -8.2%
   Nevada 16 46,984 +2,511 -5.8%
   Rhode Island 17 46,199 +1,726 +4.4%
   Illinois 18 45,787 +1,314 -7.9%
   Vermont 19 45,692 +1,219 -4.5%
   Nebraska 20 44,623 +150 -4.6%
   Michigan 21 44,476 +3 -12%
   United States national average ($44,473) -6%
   Pennsylvania 22 44,286 -187 -5.2%
   New York 23 44,228 -245 -2.7%
   Ohio 24 44,160 -313 -9.3%
   Missouri 25 43,988 -485 -5.5%
   Kansas 26 43,725 -748 -9.8%
   Wyoming 27 43,641 -832 +4.1%
   Georgia 28 43,217 -1,256 -8.3%
   Iowa 29 43,042 -1,431 -5.7%
   District of Columbia 30 43,003 -1,470 +0.5%
   Indiana 30 43,003 -1,470 -9.7%
   Oregon 31 42,617 -1,856 -10.4%
   Arizona 32 42,590 -1,883 -6.8%
   Idaho 33 42,519 -1,954 -5.8%
   Texas 34 41,275 -3,198 -9.9%
   South Dakota 35 40,518 -3,955 -2.5%
   Florida 36 40,171 -4,302 -6.7%
   North Dakota 37 39,594 -4,879 +1.2%
   Maine 38 39,395 -5,078 -1.9%
   South Carolina 39 39,326 -5,147 -9.5%
   North Carolina 40 39,000 -5,473 -11.3%
   Tennessee 41 38,550 -5,923 -8.7%
   Oklahoma 42 38,281 -6,192 -5.3%
   Alabama 43 38,111 -6,362 -7.8%
   New Mexico 44 37,587 -6,886 -6.2%
   Kentucky 45 37,396 -7,077 -5.3%
   Louisiana 46 35,523 -8,950 -3.7%
   Montana 47 35,201 -9,272 +1.6%
   Arkansas 48 33,948 -10,525 -7.2%
   Mississippi 49 33,659 -10,814 -10.3%
   West Virginia 50 32,589 -11,884 -3.8%

   SOURCE: US Census Bureau, 2004/05

Mean income

   Another common measurement of personal income is the mean household
   income. Unlike the median household income which is the 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 as 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, $17,210 or
   39.73% higher than the median household income.

     " Median income is the amount which divides the income distribution
     into two equal groups, half having income above that amount, and
     half having income below that amount. Mean income ( average) is the
     amount obtained by dividing the total aggregate income of a group by
     the number of units in that group. The means and medians for
     households and families are based on all households and families.
     Means and medians for people are based on people 15 years old and
     over with income."
     -US Census Bureau, Frequently Asked Question, published by First
     Gov.

   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 Black, $45,871 for those headed by
   persons identifying as Hispanic or Latino, 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.

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