Source: Census Bureau: Current Population Survey.
Income inequality continues to rise U.S. Gini Coefficient, 1970-2010
0.35
0.40
0.45
0.50
1970 1975 1980 1985 1990 1995 2000 2005 2010
02468
101214161820
1913 1923 1933 1943 1953 1963 1973 1983 1993 2003
Percent
Source: Piketty and Saez (2012).
Income is again more concentrated at the top Share of U.S. income earned by top 1-percent families, 1913-2010
Including capital gains
Excluding capital gains
2010
Source: Piketty and Saez (2012).
Income concentration accelerates fast in U.S. Top 0.1-percent income share of the nation, 1913-2007
0
2
4
6
8
10
12
14
1913 1923 1933 1943 1953 1963 1973 1983 1993 2003
Percent
United StatesUnited KingdomFrance
Source: Census Bureau: Current Population Survey.
More people living in poverty U.S., 1960-2010
0
5
10
15
20
25
05,000
10,00015,00020,00025,00030,00035,00040,00045,00050,000
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Percent
Number of persons in poverty Poverty rate
Source: Census Bureau: Current Population Survey.
More than 1 out of 4 Black and Hispanic families lived in poverty U.S., 2010
0
5
10
15
20
25
30
Non-Hispanic White Black Asian Hispanic
Percent
People Family
Source: Corak (2006).
Lack of intergenerational mobility in the U.S. A measure of immobility: father-son earnings elasticity
0 0.1 0.2 0.3 0.4 0.5 0.6
U.K.
U.S.
France
Germany
Sweden
Canada
Finland
Norway
Denmark
0.6 in Mazumder
(2005)
Source: Census Bureau: Current Population Survey.
Education is the stepping stone to upward mobility Educational attainment by race, U.S., 1960-2010
0102030405060708090
100
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Percent
WhiteBlack
High school or
higher
College or higher
Source: Census Bureau: Current Population Survey.
It pays to go to college Ratio of real median household income by householder’s educational attainment (B.A. or higher vs. high school), 1992-2010
1.7
1.8
1.9
2.0
2.1
2.2
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Ratio
0 10 20 30 40 50 60 70 80 90
People get rewarded for intelligence and skill.
People get rewarded for their efforts.
Coming from a wealthy family is essntial or very important to getting ahead.
Income differences in my country is too large.
Other countriesU.S.
Sources: Brookings Institution, International Social Survey Program 1999.
U.S. myth of mobility? Attitudes of citizens toward mobility, 1999
Percent
Source: Piketty and Saez (2012).
“1 Percent” and the rest of American families Average income (including capital gains), 1913-2010
$400,549$484,600
$764,451
$1,282,163$1,435,002
$12,854 $38,760 $40,791
$47,228$47,178
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1913 1923 1933 1943 1953 1963 1973 1983 1993 2003
US$ (2010)
Top 1%Bottom 99%
1928 1968 1986 2000 2007
$1,019,089
$41,777
2010
Source: Census Bureau: Current Population Survey.
Lost decade for the American middle class Real median household income, 1980-2010
1980$44,616
1990$48,423
2000$53,164
2010$49,445
40,000
42,000
44,000
46,000
48,000
50,000
52,000
54,000
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Constant US$
Relative to the metro median income
Note: For metropolitan areas with population greater than 500,000.
Source: Reardon and Bischoff (2011).
Shrinking middle class community Proportion of families living in high-, middle-, and low-income neighborhoods, U.S.,1970-2007
>150%
125-150%
100-125%
80-100%
67-80%
<67%
Affluent
Poor
179
468
613
-3,549
-3,225
-2,063
-4,000 -3,000 -2,000 -1,000 0 1,000
Higher-wage industries: $19.05-$31.40
Mid-wage industries: $12.92-$19.04
Lower-wage industries: $9.03-$12.91
Net change in employment, in thousands
Source: Bureau of Labor Statistics, NELP .
Job loss and job growth in the private sector 2008 recession
Loss from January 2008 to February 2010 Growth from February 2010 to January 2011
Note: U.S. data for reading is not available in 2006.
Source: OECD.
U.S. students lag behind in math International assessment of 15-year-old students
2000 2003 2006 2009
Reading
2000 2003 2006 2009
Science
2000 2003 2006 2009
Math
US OECD510
500
490
480
470
460
450
Score
27.4 - 20.2 20.2-14.7 14.7-12.6 12.6-9.3 9.3-7.4 7.4-1.8
Source: OECD.
Socioeconomic background has a large impact on American students’ reading score
U.S. 16.8%
Percentage of explained variance by socioeconomic background
Source: Bureau of Labor Statistics.
Under-qualified workforce Ranked by fastest projected job growth, 2009 (part I)
Rank Occupation Typical education needed for entry
Percent under-qualified
3 Biomedical Engineers Bachelor's degree 27.96 Veterinary Technologists and
TechniciansAssociate's degree 64.6
8 Physical Therapist Assistants Associate's degree 30.510 Meeting, Convention, and
Event PlannersBachelor's degree 39.7
11 Diagnostic Medical Sonographers
Associate's degree 31.1
12 Occupational Therapy Assistants
Associate's degree 14.1
15 Interpreters and Translators Bachelor's degree 51.917 Market Research Analysts
and Marketing SpecialistsBachelor's degree 21.0
18 Marriage and Family Therapists
Master's degree 49.5
Source: Bureau of Labor Statistics.
Under-qualified workforce Ranked by fastest projected job growth, 2009 (part II)
Rank Occupation Typical education needed for entry
Percent under-qualified
20 Physical Therapists Doctoral or professional degree
85.2
21 Dental Hygienists Associate's degree 8.523 Audiologists Doctoral or
professional degree65.1
24 Health Educators Bachelor's degree 47.226 Cost Estimators Bachelor's degree 69.227 Medical Scientists, Except
EpidemiologistsDoctoral or
professional degree36.1
28 Mental Health Counselors Master's degree 49.530 Veterinarians Doctoral or
professional degree2.5
Economic Mobility
1 1
Source: Census Report 2011.
Real Median Income
40%
2.5%
47.9%
4.6%
Share of Income Going to the Richest
Source: BLS.
Wage Disparity Due to Education
Sources: CDC/NCHS, National Survey of Family Growth, 2006-2010.
The highly educated are less likely to divorce Probability that a first marriage will remain intact for 20 years without disruption, 22-to-44-year-olds, U.S., 2006-2010
00.10.20.30.40.50.60.70.80.9
Less than high school High school diploma Some college Bachelor's degree
Percent
Women Men
Source: Breen and Salazar (2008).
Educational homogamy increases over time U.S., 1976-1980 vs. 2002-2006
0
20
40
60
80
100
Norway France Canada Australia United Kingdom
Japan United States
Korea
Percent
Funding sources for higher education Selected OECD countries, 2007
Source: OECD.
Private household
Public
Other private entities
The Anglosphere
Continental Europe and Japan
Scandinavia and the Mediterranean
Emerging markets
The role of higher education
• If your parents are in the bottom quintile you have a 5% of getting into the top without a college degree and a 19% chance with one
• If you’re in the top quintile you have an 18% chance of getting into the bottom without a college degree and a 2% chance with one