The percentage of households and individuals in each income bracket.[1][2]
Income in the United States is measured by the United States Department of Commerce either by household or individual. The differences between household and personal income is considerable since 42% of households, the majority of those in the top two quintiles with incomes exceeding $57,658, now have two income earners.[3]
This difference becomes very apparent when comparing the percentage of households with six figure incomes to that of individuals. In 2006, 17.3% of households had incomes exceeding $100,000,[1] compared to slightly less than 6% of individuals.[2] Overall the median household income was $46,326 in 2006 while the median personal income (including only those above the age of 25) was $32,140.[4]
Income inequality in the United States has increased considerably. Between 1979 and 2004, the mean after-tax income of the top percentile increased 167%, versus 69% for the top quintile overall, 29% for the fourth quintile, 21% for the middle quintile, 17% for the second quintile and 6% for the bottom quintile.[5] While wages for women have increased greatly, median earnings of male wage earners have remained stagnant since the late 1970s.[6][7] Household income, however, has risen due the increasing number of household with more than one income earners and women's increased presence in the labor force.[8] Half of the U.S. population lives in poverty or is low-income, according to U.S. Census data.[9] On the other hand, some members of the U. S. population have earned a considerable income: the top earner in 2011, hedge fund managerJohn Paulson, earned $4.9 billion, according to Business Insider.[10]