Virginia State Median Income: $91,600.00 Effective Date: 4/1/2020 *30%: Extremely Low-Income | 50%: Very Low-Income | 80%: Low-Income From 1981 to 1990, the change in mean family income ranged from a loss of 0.1% annually for families in the lowest quintile (the bottom 20% of earners) to a gain of 2.1% annually for families in the highest quintile (the top 20%). Please check the Privacy Policy of the site you are visiting. A, Middle-income” Americans are adults whose annual household income is two-thirds to double the national median, after incomes have been adjusted for household size. This downsizing has proceeded slowly but surely since 1971, with each decade thereafter typically ending with a smaller share of adults living in middle-income households than at the beginning of the decade. By either estimate, income inequality in the U.S. is found to have increased by about 20% from 1980 to 2016 (The Gini coefficient ranges from 0 to 1, or from perfect equality to complete inequality). These include, in no particular order, technological change, globalization, the decline of unions and the eroding value of the minimum wage. In the survey, respondents provide household income data for the previous calendar year. On the other hand, middle-income families saw their median net worth shrink by 20% and lower-income families experienced a loss of 45%. Regardless of its ultimate interpretation, however, a fact remains a fact. Fox News Ratings Tumble as Trump Supports Other Networks, Spain’s Government Declares War on the Spanish Language, Elderly Woman Euthanized to Avoid Anguish of Lockdown Loneliness, Raise the Entrance Fees for Our National Parks, The Conspiracy-Theorist Lawyer Who Would Hand Joe Biden Control of the Senate. See. It is an increase of 6.8% from 2018 numbers. Most of the increase in household income was achieved in the period from 1970 to 2000. It depends. No matter what, the era of middle-class prosperity that feels like it could be end-dated to October 10, 2000, is never coming back. Will it outlast his presidency? Home prices plunged starting in 2006, triggering the Great Recession in 2007 and dragging stock prices into a steep fall as well. The unemployment rate in November 2019 was 3.5%, a level not seen since the 1960s. The OECD is a group of 36 countries, including many of the world’s advanced economies. Yet another alternative is to focus on inequality in consumption, which implicitly accounts for all forms and sources of incomes, taxes and transfers. The Congressional Budget Office (CBO) offers an alternative estimate of income inequality that accounts for federal taxes and a more comprehensive array of cash transfers and in-kind services than is possible with Current Population Survey data. By 2016, this ratio had increased to 248, a much sharper rise than the widening gap in income.13. If the income distribution is perfectly unequal, a single person or household holds all aggregate income, the Gini coefficient is equal to one. Meanwhile, the share in the lower-income tier increased from 25% to 29%. Findings from other researchers show the same general rise in inequality over this period regardless of accounting for in-kind transfers. A society where the median household’s income relies on government transfers to grow is, in ways large and small, unlikely to resemble one where the growth is coming from earned income. The reason for this is that middle-income families are more dependent on home equity as a source of wealth than upper-income families, and the bursting of the housing bubble in 2006 had more of an impact on their net worth. The matter may not be entirely settled, however, as an opposing viewpoint suggests that income inequality does not harm economic opportunity. Not only is income inequality rising in the U.S., it is higher than in other advanced economies. Accumulated over time, wealth is a source of retirement income, protects against short-term economic shocks, and provides security and social status for future generations. On balance, there was more movement up the income ladder than down the income ladder. This report presents estimates of income inequality based on household income as estimated in the Current Population Survey (CPS), a survey of households conducted by the U.S. Census Bureau in partnership with the Bureau of Labor Statistics.