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Median Real Wage Analysis

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Did you know, just 62 people combined have the same amount of wealth as the world’s poorest 3.5 billion people (Westcott 1)? An unequal distribution of income and wealth is becoming a more widespread issue in the United States. There are many facts that support this statement, as well as several possible reasons behind it. There are also several possible solutions to the problem. The median real wage rose 5 percent from 1979 to 2012, with the median real wage in the top 1 percent of wage earnings increasing 154 percent (Blinder 9). Yet the median real wage at the 95th percentile only rose 39 percent (Blinder 9). Meanwhile, the median real wage at the 20th percentile remained flat during that time frame and the median real wage at the 10th percentile fell 6 percent (Blinder 10). Median real wage is defined as the real wage earned exactly in …show more content…

In 1971 61 percent of adults lived in middle income households, while in 2014 that figure was 50 percent (Samuelson 3). Yet from 1971 to 2014 upper income households grew from 14 percent to 21 percent, and lower income households grew from 25 percent to 29 percent (Samuelson 3). In 2000 typical middle-income households had incomes 40 percent higher than in 1970, while in 2014 that figure was 34 percent (Samuelson 6). Middle-income household income increased 13 percent in the 1970s, 11 percent in the 1980s, and 12% in the 1990s (Samuelson 5). Those amounts were 13 percent, 8 percent, and 15 percent, respectively, for lower-income households (Samuelson 5). Upper-income household income increased 10 percent in the 1970s, 18 percent in the 1980s and 1990s (Samuelson 5). A middle-income household is defined as a 3-person household with income between $41,869 and $125,608 (Samuelson 3). The amount for an upper-income household would be above $135,608, while the amount for a lower-income household would be below $41,869 (Samuelson

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