Income and Wealth in the United States: An Overview of Recent Data

Government surveys collect a wide range of information about the population of the United States that contain useful insights about Americans’ economic status. Three examples are the American Community Survey (ACS), which is the most reliable source for income data at the state and local level; the Current Population Survey Annual Social and Economic Supplement (ASEC), which serves as the primary source for income data at the national level; and the Survey of Consumer Finances (SCF), which provides detailed data on household wealth.

The ASEC and the ACS are conducted annually by the Census Bureau, while the SCF is conducted once every three years by the Federal Reserve. Below are some examples of measures of income and wealth from those surveys.

Income Levels Vary Across Geography, Race, and Gender

According to the ASEC, median household income was $63,179 in 2018, which is not statistically different from the median household income in 2017. Looking at data for national averages, however, may mask important differences by region, race, level of education, or other categories.

The table below shows that median income varies by region — for example, it is higher for households in the Northeast and West than it is for those in the Midwest and South.

The Northeast and West have higher median household incomes than the Midwest and South

SOURCE: United States Census Bureau, Current Population Survey, 2018 and 2019 Annual Social and Economic Supplements.

NOTE: The differences between the values above are not all statistically significant at the confidence level used by the Census Bureau.

The next table shows median household income data for selected states. According to the ACS, in 2018, the District of Columbia, Maryland, and New Jersey had the highest median household incomes. West Virginia, Mississippi, and Arkansas had the lowest median household incomes. Such figures do not reflect differences in the cost of living among regions.

Median household incomes vary widely by state

SOURCE: United States Census Bureau, 2017 and 2018 American Community Surveys, 1-Year Estimates.

NOTE: The differences between the values above are not all statistically significant at the confidence level used by the Census Bureau.

Income also varies by race and ethnicity. The table and chart below show median household income grouped by the race and ethnicity of the head of household. In 2018, households whose head was classified as Asian or White had median incomes that were higher than the national median, while households headed by people classified as Black or Hispanic had median incomes that were lower than the national median.

In 2018, median household income varied considerably by race and ethnicity

SOURCE: United States Census Bureau, Current Population Survey, 2018 and 2019 Annual Social and Economic Supplements.

NOTE: The differences between the values above are not all statistically significant at the confidence level used by the Census Bureau.

The table below shows median household income, grouped by educational attainment of the household head. Households led by an individual over 25 years of age with a bachelor’s degree or more have incomes that are considerably higher than the national median. Households led by an individual over age 25 with less than a high school diploma earn less than half of the national median.

Median household income varies based on the educational attainment of the household head

SOURCE: United States Census Bureau, Current Population Survey, 2019 Annual Social and Economic Supplement.

NOTE: The data in this table exclude households that are led by an individual who is under 25 years of age. The differences between all of the values above are statistically significant at the confidence level used by the Census Bureau.

The ASEC also gathers data on earnings, which is defined as compensation for work. In other words, earnings include wages and salaries, but exclude income sources such as public assistance and interest payments. In 2018, the median earnings for full-time, year-round male workers was $10,000 higher than the median earnings for full-time, year-round female workers.

Male workers earn more than female workers

SOURCE: United States Census Bureau, Current Population Survey, 2018 and 2019 Annual Social and Economic Supplements.

NOTE: The differences between all of the values above are statistically significant at the confidence level used by the Census Bureau.

Wealth is an Important Component of Americans’ Economic Status

When it comes to describing the financial status of Americans, income doesn’t tell the whole story. Income measures the flow of money and assets during a given period of time. Wealth measures the stock of money and assets accumulated as of a certain point in time. A household with an income of $100,000 that saves $5,000 each year would have $25,000 of additional wealth at the end of five years.

The SCF measures wealth by using a concept called net worth. Net worth is the difference between a household’s assets and its debt. For example, if a household has $10,000 in its checking account, $40,000 of student debt, and $5,000 of credit card debt, then it has a net worth of -$35,000.

The table below shows median net worth in 2016 by race and education. (This data is updated once every three years; the next update will be released in 2020 and will contain data for 2019.) It illustrates how net worth varies by race, even when controlling for education level.

Household net worth varies by race

SOURCE: Board of Governors of the Federal Reserve System, 2016 Survey of Consumer Finances.

The ASEC, ACS, and SCF contain data for many more demographic categories, such as occupation, family structure, marital status, and number of children. Such data highlight variations among populations in the United States and can help lawmakers evaluate policies to address such differences.

Related: CBO: Income Inequality Continues to Rise

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Image credit: IP Galanternik D.U.