American Incomes: Demographics of Who Has Money by New Stragetist Editors

By New Stragetist Editors

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With wages stagnating, larger households may fare better in the years ahead because they often include more earners. html; calculations by New Strategist AMERICAN INCOMES: Demographics of Who Has Money 25 Having More Earners Results in Higher Incomes Households with no earners or only one earner are falling behind. 3 percent between 2000 and 2002 because of the recession of 2001, income declines were limited to households with no earners or only one earner. In fact, the more earners in the household, the better the household has fared during the past few years.

Married couples ranked second, with a 19 percent increase. Behind these gains was the growing labor force participation of women. The median income of male-headed families with children fell 4 percent between 1990 and 2002, after adjusting for inflation. ■ As boomers become dual-income empty-nesters in their peak earning years during the next ten years, the incomes of families without children are likely to grow faster than those of families with children. 4 Note: (–) means data are not available.

Since 1990, the median income of married couples in which both husband and wife work full-time has grown twice as fast (up 14 percent, after adjusting for inflation) than that of couples in which only the husband works full-time and the wife does not work (up 7 percent). Consequently, the gap in incomes between these household types has grown. In 1990, the median income of the single-earner couples was 73 percent as high as that of the dual-earner couples. By 2002, it was only 66 percent as high.

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