Order Code RL33835
Real Earnings, Health Insurance and Pension
Coverage, and the Distribution
of Earnings, 1979-2007
Updated October 6, 2008
Gerald Mayer
Analyst in Labor Policy
Domestic Social Policy Division

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Real Earnings, Health Insurance and Pension
Coverage, and the Distribution of Earnings, 1979-2007
Summary
From 1979 to 2007, there were differences between men and women in the level
and growth in real earnings and in employment-based health insurance and pension
coverage. Earnings and benefit coverage also differed between persons who work
full-time, year-round and all working persons.
All Workers. From 1979 to 2007, average real weekly earnings for all workers
increased by 25.9%. Earnings increased at all earnings levels, with workers at the
95th percentile receiving the largest increase (39.4%). The earnings gap between men
and women narrowed. The earnings of lower- and middle-wage men (i.e., at the 20th,
40th, and 60th percentiles) were relatively unchanged, but the earnings of women
increased at all earnings levels. Inequality increased from 1979 to 2007. The top 5%
of earners gained a larger share of earnings; other workers received a smaller share.
Workers with higher earnings are more likely to have employment-based health
insurance and pension coverage. From 1979 to 2007, participation in a pension plan
increased for lower-wage workers, but decreased for higher-wage workers. The
increase among lower-wage workers was due entirely to greater participation among
women. From 1987 to 2007, health insurance coverage fell for workers at all
earnings levels. The decline was greatest among lower-wage workers (i.e., at the 1st
quintile). Among middle-wage workers, (i.e., at the 2nd, 3rd, and 4th quintiles), the
decline in coverage was greater for men than women.
In brief, from 1979 to 2007, the real weekly earnings of lower- and middle-wage
men were relatively unchanged, and they lost health insurance coverage and most
lost pension coverage. Among lower-and middle-wage women, real weekly earnings
and pension participation improved, but they lost health insurance coverage.

Full-Time, Year-Round Workers. From 1979 to 2007, the real weekly
earnings of full-time, year-round workers rose by 13.7%. Earnings increased at all
earnings levels, with the largest increase going to workers at the 95th percentile
(28.8%). The earnings gap between men and women who work full-time, year-round
narrowed. The earnings of men at the 20th and 40th percentiles fell, while the earnings
of women increased at all earnings levels. Inequality increased, as the highest paid
workers (i.e., top quintile) gained a larger share of earnings.
For workers employed full-time, year-round, health insurance coverage fell at
all earnings levels from 1987 to 2007. The decline in coverage was greatest for
lower- and middle-wage workers and greater for lower- and middle-wage men than
women. Except for the highest earning workers (i.e., top 5%), pension coverage fell
at all earnings levels. Among lower- and middle-wage workers, pension coverage
declined among men but was relatively unchanged among women. Thus, lower-wage
men who worked full-time, year-round experienced both a decline in real earnings
and lower pension and health insurance coverage. The real earnings of lower-wage
women improved, but their pension coverage was unchanged and they lost health
insurance coverage. This report will be updated periodically.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Organization of Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
The Definition of Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Summary of Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
All Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Full-Time, Year-Round Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Policies to Increase Real Earnings
or Reduce Inequality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Real Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Productivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Economic Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Inequality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Indirect Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Direct Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Tradeoff with Economic Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Macroeconomic Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
The Trend in Real Weekly Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
All Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Full-Time, Year-Round Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Fringe Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Employment-Based Health Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
All Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Full-Time, Year-Round Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Employer- or Union-Provided Pension Plans . . . . . . . . . . . . . . . . . . . . . . . 19
All Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Full-Time, Year-Round Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
The Distribution of Weekly Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Topcoded Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Gini Coefficient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
All Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Full-Time, Year-Round Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
The Share of Total Weekly Earnings by Quintile . . . . . . . . . . . . . . . . . . . . 26
All Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Full-Time, Year-Round Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Reasons for Changes in the Share of Total Weekly Earnings
by Quintile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Appendix: Measures of Inequality, Data, and Methodology . . . . . . . . . . . . . . . . 30
Measures of Inequality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Gini Coefficient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Share of Total Earnings by Quintile . . . . . . . . . . . . . . . . . . . . . . . . . . 30

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Data Source and Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
CPI-U-RS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Topcoded Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Confidence Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Data Used in Text and Graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
List of Figures
Figure 1. Percentage of Full-Time Workers and Full-Time,
Year-Round Workers, 1979-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Figure 2. Real Weekly Earnings, All Workers, 1979-2007 . . . . . . . . . . . . . . . . 10
Figure 3. Real Weekly Earnings, All Male Workers, 1979-2007 . . . . . . . . . . . . 12
Figure 4. Real Weekly Earnings, All Female Workers, 1979-2007 . . . . . . . . . . 12
Figure 5. Real Weekly Earnings, Full-Time, Year-Round Workers,
1979-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure 6. Real Weekly Earnings, Male Full-Time, Year-Round Workers,
1979-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Figure 7. Real Weekly Earnings, Female Full-Time, Year-Round Workers,
1979-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure 8. Employment-Based Health Insurance Coverage, All Workers,
By Quintile, 1987-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Figure 9. Employment-Based Health Insurance Coverage, Full-Time,
Year-Round Workers, By Quintile, 1987-2007 . . . . . . . . . . . . . . . . . . . . . . 19
Figure 10. Participation in an Employer- or Union-Provided Pension Plan,
All Workers, By Quintile, 1979-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Figure 11. Participation in an Employer- or Union- Provided Pension Plan,
Full-Time, Year-Round Workers, By Quintile, 1979-2007 . . . . . . . . . . . . . 22
Figure 12. Gini Coefficient, All Workers, 1979-2007 . . . . . . . . . . . . . . . . . . . . 25
Figure 13. Gini Coefficient, Full-Time, Year-Round Workers, 1979-2007 . . . . 26
Figure 14. Share of Total Weekly Earnings by Quintile, All Workers,
1979-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Figure 15. Share of Total Weekly Earnings by Quintile, Full-Time,
Year-Round Workers, 1979-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Figure 16. Illustration of Lorenz Curves and Gini Coefficients for
Two Groups of Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
List of Tables
Table 1. The Trend in Real Weekly Earnings: All Workers, 1979-2007 . . . . . 34
Table 2. The Trend in Real Weekly Earnings: Full-Time,
Year-Round Workers, 1979-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Table 3. Employment-Based Health Insurance Coverage,
All Workers by Quintile, 1987-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Table 4. Employment-Based Health Insurance Coverage,
Full-Time, Year-Round Workers, by Quintile, 1987-2007 . . . . . . . . . . . . . 40
Table 5. Employer- or Union-Provided Pension Coverage,
All Workers, by Quintile, 1979-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

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Table 6. Employer- or Union-Provided Pension Coverage,
Full-Time, Year-Round Workers, by Quintile, 1979-2007 . . . . . . . . . . . . . 44
Table 7. Gini Coefficients for All Workers and for Full-Time,
Year-Round Workers, 1979-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Table 8. Share of Total Weekly Earnings by Quintile,
All Workers, 1979-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Table 9. Share of Total Weekly Earnings by Quintile,
Full-Time, Year-Round Workers, 1979-2007 . . . . . . . . . . . . . . . . . . . . . . . 50

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Real Earnings, Health Insurance and
Pension Coverage, and the Distribution
of Earnings, 1979-2007
Introduction
Real earnings and the distribution of earnings are indicators of a nation’s
economic well-being. Changes in the level of real earnings (i.e., actual earnings
adjusted for inflation) show how a worker’s buying power has risen or fallen over
time. Changes in the distribution of earnings show how the buying power of
different workers has changed over time.
Real earnings and the distribution of earnings affect several public policy issues.
When wages rise with productivity, increased earnings can expand the Social
Security taxable wage base, which can reduce the future need for higher Social
Security payroll taxes or cuts in benefits. Higher earnings can also help pay for
future Medicare benefits. Conversely, lower earnings can make it more difficult to
finance the Social Security and Medicare programs.
The level of real earnings can affect the national poverty rate and, therefore,
federal spending on welfare and assistance for food, housing, healthcare, and energy.
The federal minimum wage can affect the real earnings of lower-wage workers, as
well as the overall distribution of earnings.
In large part, real earnings depend on the amount of investment per worker —
in the form of both human capital (e.g., education and healthcare) and physical
capital (e.g., computers and other equipment). Investment depends on personal,
business, and government saving. Thus, federal budget deficits or surpluses can
affect the national saving rate and the amount of investment per worker.
Government spending and tax policy can also affect earnings. Federal support
for research and development can affect real earnings through the development of
new goods and services and more productive technologies. Tax policy can affect
decisions to save and invest, as well as the aftertax distribution of earnings. Policies
that affect personal saving and the availability of private pension benefits can impact
retirement income and reliance on Social Security benefits. Policies that influence
the availability of private health insurance can affect federal spending on healthcare.
Rules on immigration can affect both real earnings and the distribution of
earnings. An increased supply of unskilled foreign workers can lower the wages of
less-skilled U.S. workers and increase inequality. Conversely, an increased supply
of skilled foreign workers can lower the wages of skilled American workers and
reduce inequality. Similarly, trade policy can affect both real earnings and the

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CRS-2
distribution of earnings. Increased imports from low-wage countries can raise the
living standards of U.S. households but affect the wages of domestic workers who
produce competing goods and services. Increased exports of goods produced in the
United States can raise the wages of American workers.
Finally, differences in earnings among racial or ethnic groups or extremes in
inequality can affect popular support for major social, political, and economic
institutions.
Organization of Report
This report examines the trends in real weekly earnings and the distribution of
weekly earnings in the United States from 1979 to 2007. The report provides
separate analyses for men and women.1 The report begins with a definition of
earnings and a summary of the findings in the report. Next, the paper discusses broad
policies to increase real earnings or reduce inequality. The final section of the report
provides a detailed summary of the findings.
The report analyzes individual earnings. A study of individual income or of
family earnings or income may reach different conclusions.2 The report does not
review research on the causes of changes in real earnings or inequality.3
The Definition of Earnings
The results of an analysis of real earnings and the distribution of earnings are
affected by the definition of earnings, whose earnings are studied (e.g., all workers,
full-time workers, prime-age workers, or others), the measure of inequality, and the
time period studied.
Earnings are payments that individuals receive for their labor services.
Individuals may be paid for a period of time worked (e.g., an hourly wage or weekly
salary) or the quantity of goods or services produced (e.g., a piece rate). Earnings
1 In addition to real earnings and the distribution of earnings, economists also study earnings
mobility, or how the earnings of a given sample of workers change over time. Because of
mobility, the distribution of lifetime earnings may differ from the distribution of annual or
weekly earnings.
2 Earnings account for the largest share of individual and family income.
3 Hearings during the first session of the 110th Congress examined the trends and causes of
inequality. See U.S. Congress, House, Committee on Ways and Means, Hearing on the
Economy, January 23, 2007, available at [http://waysandmeans.house.gov]; U.S. Congress,
House, Committee on Education and Labor, Strengthening America’s Middle Class:
Evaluating the Economic Squeeze on America’s Families, January 31, 2007, available at
[http://edworkforce.house.gov]; U.S. Congress, House, Committee on Ways and Means, The
Challenges Facing Middle-Class Families, January 31, 2007, available at
[http://waysandmeans.house.gov]; and U.S. Congress, Joint Economic Committee, Ensuring
Our Economic Future by Promoting Middle-Class Prosperity, January 31, 2007, available
at [http://jec.senate.gov].

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CRS-3
may be defined as cash wages or as total compensation. The latter consists of cash
wages plus fringe benefits such as employer-provided health insurance, employer
contributions to a retirement plan, and paid sick leave and vacations.
The results of an analysis of individual earnings would differ from a study of
individual compensation or individual income or of family earnings or income.4
Many individuals and families receive cash or in-kind benefits from sources other
than work (e.g., interest, dividends, rent, cash welfare assistance, refundable tax
credits, or in-kind benefits such as food, housing, healthcare, or energy assistance).5
Some families have more wage earners than other families.
This report analyzes individual weekly earnings, where earnings consist of cash
wages before taxes or other deductions. Individual earnings consist of total annual
earnings from all jobs. Weekly earnings are annual earnings divided by the number
of weeks worked. The analysis includes wage and salary workers and self-employed
workers ages 16 and older. Because there are differences in the labor market
characteristics of men and women, the earnings of men and women are analyzed
separately.6 The analysis uses data from the Annual Social and Economic (ASEC)
supplement to the Current Population Survey (CPS). The CPS is a household survey
conducted by the Census Bureau for the Bureau of Labor Statistics (BLS). The
annual supplement asks workers how much they earned the previous year. Thus, the
2008 supplement collected earnings information for 2007. The Appendix includes
a fuller explanation of the data and methodology used in this report.
Finally, the report analyzes the earnings of two groups of workers: (1) all
workers and (2) workers employed full-time, year-round. “All” workers include
persons employed either full-time or part-time as well as workers who worked either
part of the year or all year. Full-time workers are persons who work 35 or more
hours a week. Year-round workers are persons who work 50 or more weeks a year.
4 The distribution of earnings may change even though the distribution of total compensation
does not change; e.g., if workers choose to receive a greater or smaller share of
compensation as wages or if employers raise or lower their contributions for health
insurance or retirement benefits.
For analyses of the distribution of household income, see CRS Report RS20811, The
Distribution of Income, by Brian W. Cashell; CRS Report RL32639, Inequality in the
Distribution of Income: Trends and International Comparisons, by Brian W. Cashell; and
U.S. Department of Commerce, Bureau of the Census, Income, Poverty, and Health
Insurance Coverage in the United States: 2005, P60-231, August 2006, available at
[http://www.census.gov/prod/2006pubs/p60-231.pdf].
5 The results of an analysis of the distribution of earnings would differ from an analysis of
the distribution of income if income from transfer payments or from savings and investments
rise or fall. In addition, a change in nonlabor income may affect earnings (i.e., decisions to
work or how much to work).
6 In general, women tend to work fewer hours per week than men, spend less time in the
labor force, and enter and leave the labor force more often than men. The distribution of
women by occupation and industry also differs from men. See CRS Report 98-278, The
Gender Wage Gap and Pay Equity: Is Comparable Worth the Next Step?, by Linda Levine.

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CRS-4
Analyzing the earnings of full-time, year-round workers helps control for
changes in hours worked per week, temporary and seasonal employment, and spells
of unemployment. From 1979 to 2007, the percentage of workers employed full-
time, year-round increased by 12.2 percentage points (from 56.4% in 1979 to 68.6%
in 2007). (See Figure 1.) The percentage of workers employed full-time and the
percentage of workers employed both full-time and year-round tend to dip during
recessions. From 1979 to 2007, there were recessions from January to July 1980,
July 1981 to November 1982, July 1990 to March 1991, and March to November
2001.7
Figure 1. Percentage of Full-Time Workers and
Full-Time, Year-Round Workers, 1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).
7 National Bureau of Economic Research (NBER), Business Cycle Dates and Contractions,
available at [http://www.nber.org/cycles.html].
For a discussion of the economic recovery following the 2001 recession, see CRS
Report RL32047, The ‘Jobless Recovery’ From the 2001 Recession: A Comparison to
Earlier Recoveries and Possible Explanations, by Marc Labonte and Linda Levine.

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CRS-5
Summary of Findings
All Workers
! From 1979 to 2007, the average real weekly earnings (i.e., earnings
adjusted for inflation) of all workers increased by 25.9%. Earnings
increased for workers at all percentiles.8 The increase was greatest
for workers at the 95th percentile (39.4%).
! At all earnings levels, from 1979 to 2007, men earned more than
women. But, during the 28-year period, the earnings of women
increased more than the earnings of men. Thus, the earnings gap
between men and women narrowed over the period.
! From 1979 to 2007, the increase in earnings among lower- and
middle-wage workers (i.e., workers at the 20th, 40th, and 60th
percentiles), was due mainly to higher earnings among women. The
earnings of men at these percentiles were relatively unchanged (up
by 3.6%, down by 2.9%, and up by 3.4%, respectively). But, the
earnings of women at these percentiles increased by 43.5%, 37.8%,
and 44.9%, respectively.
! The CPS has consistent information on health insurance coverage
from 1987 to the present. Workers with higher earnings are more
likely to have employment-based health insurance coverage.
However, from 1987 to 2007, the percentage of workers with
employment-based health insurance coverage declined at all
quintiles.9
! From 1987 to 2007, the decline in health insurance coverage was
greatest for lower-wage workers (i.e., workers at the first quintile).
Coverage declined among both men and women. But, among
middle-wage workers (i.e., workers at the second, third, and fourth
quintiles), the decline in coverage was greater for men than women.
! Workers with higher earnings are more likely than lower-wage
workers to participate in an employer or union provided pension
plan. Relative to higher-wage workers, however, participation
among lower-wage workers in a pension plan improved from 1979
to 2007. The improved participation among lower-wage workers
was due entirely to increased participation among women.
8 If workers are ranked from lowest to highest paid, workers at the 20th percentile earn more
than 20% of workers, workers at the 40th percentile earn more than 40% of workers, and
so on.
9 If workers are ranked from lowest to highest paid and then divided into five equal-size
groups, each group is a quintile.

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CRS-6
! From 1979 to 2007, participation among middle-wage men in an
employer-based pension plan fell, but increased among middle-wage
women.
! As measured by the Gini coefficient, inequality increased among all
workers over the period from 1979 to 2007. Inequality increased
among both men and women. From 1979 to 2007, periods of rising
inequality were followed by periods of falling inequality. Inequality
fell from 2005 to 2007.
! Inequality increased more among men and women, when analyzed
separately, than among men and women analyzed together.
Although overall inequality declined from 2005 to 2007, among
women it increased from 2005 to 2006 and then declined from 2006
to 2007.
! From 1979 to 2007, the rise in inequality was due mainly to the
growth in the share of total weekly earnings received by the top 5%
of earners and the decline in the share of earnings received by other
workers. From 1979 to 2007, the share of total earnings received by
the top 5% of earners increased by 2.6 percentage points. During the
period, when inequality increased it was generally because the top
5% of earners received a larger share of earnings, while other
workers received a smaller share. Conversely, when inequality
declined, it was generally because the top 5% of workers received a
smaller share of earnings and other workers received a larger share.
Full-Time, Year-Round Workers
! From 1979 to 2007, the average real weekly earnings of full-time,
year-round workers increased by 13.7%. Earnings increased at all
earnings levels. The largest increase, 28.8%, occurred among
workers at the 95th percentile.
! During the 28-year period, the earnings of lower-wage men (i.e.,
men at the 20th and 40th percentiles) employed full-time, year-round
fell by 9.7% and 6.9%, respectively. Conversely, the earnings of
women at the 20th and 40th percentiles increased by 7.3% and 25.2%,
respectively.
! At all earnings levels, the earnings of women increased more than
the earnings of men. Thus, as was the case with the category of all
workers, the gap narrowed between the earnings of men and women
employed full-time, year-round.
! Higher earning full-time, year-round workers are more likely than
lower-wage workers to be covered by an employment-based health
insurance plan. Nevertheless, from 1987 to 2007, health insurance
coverage declined at all earnings levels. The decline in coverage
was greatest for lower-wage workers.

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CRS-7
! During the 20-year period from 1987 to 2007, health insurance
coverage declined among both men and women employed full-time,
year-round. But, the decrease was greater for lower- and middle-
wage men (i.e., men at the first four quintiles) than among lower-
and middle-wage women.
! Higher-wage full-time, year-round workers are more likely than
lower-wage workers to participate in an employer or union provided
pension plan. However, except for the top 5% of earners,
participation declined at all earnings levels from 1979 to 2006.
! From 1979 to 2007, participation by lower- and middle-wage men
in an employment-based pension plan declined more than among
lower- and middle-wage women. At the lowest quintile,
participation among men fell by 8.7 percentage points, compared to
a 3.3 percentage point decline among women. Participation fell
among men at the second, third, and fourth quintiles, but was
relatively unchanged among women.
! The distribution of earnings among workers employed full-time,
year-round is more equal than the distribution of earnings among all
workers. Nevertheless, from 1979 to 2007, inequality increased
among full-time, year-round workers. Periods of greater equality
were followed by periods of rising inequality. From 2006 to 2007,
the distribution of earnings became more equal.
! Inequality among women employed full-time, year-round is
significantly lower than inequality among men. But inequality
among men and women, analyzed separately, increased more from
1979 to 2007 than inequality among men and women combined.
! Over the period from 1979 to 2007, the top quintile of earners
received a larger share of total weekly earnings, while the first four
quintiles received a smaller share. From 1979 to 2007, the share of
earnings received by the top 5% of earners increased by 1.5
percentage points. Similar to the pattern among all workers, when
inequality increased among full-time, year-round workers, the share
of earnings received by the bottom four quintiles generally fell,
while the share of earnings received by the top quintile — especially
the top 5% — generally rose. Conversely, when equality improved,
the opposite occurred.

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CRS-8
Policies to Increase Real Earnings
or Reduce Inequality
A variety of policies are available to increase real earnings or reduce earnings
inequality. Policies to increase real earnings may differ from policies to reduce
inequality. In some cases, the policies may conflict. Some of the policies may have
mainly short-term effects. Other policies may require a longer-term commitment.
Real Earnings
Productivity. Real earnings rise with increased productivity. Policies to
increase productivity may include plans to raise both private and public saving,
increase capital investment per worker, expand investment in human capital (e.g.,
education, training, and healthcare), and encourage the development of technology.
Technological innovation may include improved equipment, the introduction of new
products, or improved methods of production, transportation, or communication.10
Economic Efficiency. Another way to increase real earnings is to improve
economic efficiency. According to standard economic theory, competitive markets
generally result in the most efficient allocation of resources, where resources consist
of individuals with different skills, capital goods (e.g., computers, machinery, and
buildings), and natural resources. A more efficient allocation of resources generally
results in greater total output and consumer satisfaction.
Economic efficiency can be improved through policies that provide consumers
with greater access to goods and services (e.g., improved infrastructure to exchange
goods and services and expanded trade) and a better allocation of labor and capital
(e.g., neutral tax policies, migration, or the deregulation of labor, product, or other
markets).
Inequality
Inequality may be reduced using either direct or indirect policies. Direct
policies include income transfer programs. Indirect policies consist of plans that
improve the income-producing human capital of lower-skilled workers (e.g.,
education, training, or healthcare). Efforts to reduce inequality may involve a
tradeoff, however, with policies to improve economic efficiency.
Indirect Policies. Inequality can be reduced with policies that reduce the
relative supply of less-skilled labor, increase the relative supply of skilled labor, or
both. Such policies may include improved investment in preschool, grade school,
and high school education, better adult education, and improved access to healthcare
10 Improved technology may allow for greater outsourcing of both manufacturing and service
jobs, which may or may not affect the distribution of domestic earnings. See CRS Report
RL32292, Offshoring (a.k.a. Offshore Outsourcing) and Job Insecurity Among U.S.
Workers, by Linda Levine and CRS Report RL32484, Foreign Outsourcing: Economic
Implications and Policy Responses, by Craig K. Elwell.

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CRS-9
for lower income workers and their families. Inequality may also be reduced by
increasing the relative supply of college-educated workers; for example, programs
that lower the cost of higher education or increase educational assistance to lower
income students. Some policies may be more cost effective than others. Immigration
policies that allow more skilled workers, fewer unskilled workers, or both, into the
country can also reduce inequality.
Direct Policies. Income inequality may also be reduced through income
redistribution programs. These programs include policies such as progressive
taxation — including refundable tax credits like the Earned Income Tax Credit
(EITC) or the Child Tax Credit (CTC). They also include in-kind transfers of food,
housing, healthcare, and energy assistance.
Tradeoff with Economic Efficiency. Competitive markets may allocate
resources efficiently, but they may result in an unequal distribution of earnings.
Thus, programs that reduce inequality may involve a tradeoff with policies to
improve economic efficiency. Some economists argue that a higher minimum wage,
easier union organizing rules, or more restrictive trade policies may reduce
inequality. Other economists maintain that these policies may reduce total economic
output and may not have a significant impact on inequality. Similarly, some
economists argue that high marginal tax rates and income redistribution programs
may harm economic efficiency. For example, high tax rates may discourage saving
and investment. Transfer payments or other forms of nonlabor income may reduce
the supply of labor (i.e., they may affect decisions to work or how much to work).
Macroeconomic Policies. Fiscal and monetary policies that reduce or
maintain low unemployment may also affect the distribution of earnings. During an
economic expansion, an increase in the number of hours worked or the hourly wages
of lower-wage workers may improve the relative earnings of lower-wage workers.
Fiscal policy consists of government spending and revenue decisions. Monetary
policy consists of actions by the Federal Reserve Bank that affect money supply and
interest rates.11
The Trend in Real Weekly Earnings
The remainder of this report provides a detailed description of the findings
summarized above. This section examines the trend in real weekly earnings from
1979 to 2007. Earnings are for both wage and salary workers and self-employed
workers. Nominal, or actual, earnings are adjusted for inflation using the Consumer
Price Index for All Urban Consumers, adjusted to take into account the current
methods for measuring changes in prices (CPI-U-RS). An explanation of this index
is provided in the Appendix.
This section shows the trend in real weekly earnings for workers at the 20th, 40th,
60th, 80th, and 95th percentiles. If workers are ranked from lowest to highest paid,
workers at the 20th percentile earn more than 20% of workers, workers at the 40th
11 Fiscal policy (i.e., budget surpluses or deficits) may also impact interest rates.

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CRS-10
percentile earn more than 40% of workers, and so on. All of the results in this
section are shown using graphs. All of the data displayed in the graphs are provided
in the Appendix.
All Workers
From 1979 to 2007, the average real weekly earnings of all employed persons
increased by 25.9%. Earnings increased for workers at all percentiles. See Figure
2.12 The increase was greatest for workers at the 95th percentile. For example, for
workers at the 20th percentile, earnings increased from $244 to $292 per week (or
19.5%). For workers at the 95th percentile, earnings increased from $1,587 to $2,212
a week (or 39.4%). From 2001 to 2007, the earnings of workers at the 95th percentile
fell by 0.7% (from $2,228 to $2,212).
Figure 2. Real Weekly Earnings, All Workers,
1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).
12 Because of changes in topcoding in the CPS that affected the change in average earnings
from 1992 to 1993, average earnings are not shown in Figure 2 or in the other figures in this
report that show trends in real weekly earnings. Since the reported change in earnings from
1992 to 1993 cannot be separated into the effects of the change in topcoding and the actual
change in earnings, in Tables 1 and 2 the percentage change in average earnings from 1979
to 2007 is the sum of the changes in average earnings from 1979 to 1992 and from 1993 to
2007. See the discussion of “Topcoded Earnings” later in this report.

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CRS-11
Figures 3 and 4 show two differences in the real weekly earnings of men and
women. First, at each percentile, the earnings of men are greater than the earnings
of women. For example, in 2007, men at the 20th percentile earned $365 a week,
compared to $250 a week for women. At the 60th percentile men and women earned
$900 and $635 a week, respectively. At the 95th percentile, men earned $2,653 a
week, compared to $1,700 a week for women.
Over the period from 1979 to 2007, average real weekly earnings increased
more for women than men (50.4% and 16.7%, respectively). At all earnings levels,
weekly earnings increased more among women than men. Thus, over the 28-year
period, the earnings gap between men and women narrowed.
At the 20th, 40th, and 60th percentiles, the increase in earnings among all workers
was due almost entirely to higher earnings among women. The earnings of men at
the 20th, 40th, and 60th percentiles were relatively unchanged (up by 3.6%, down by
2.9%, and up by 3.4%, respectively). But, for women at these percentiles, earnings
increased by 43.5%, 37.8%, and 44.9%, respectively. (See Table 1 in the
Appendix.)
The narrowing of the earnings gap between men and women may have been
caused by a number of factors. Women’s relative hourly wages may have increased.
They may have worked more hours. Gains in educational attainment and work
experience may have helped narrow the gap. More women may have entered
traditionally male occupations.13
13 For more discussion on the reasons for the narrowing of the wage gap between men and
women, see CRS Report 98-278, The Gender Wage Gap and Pay Equity: Is Comparable
Worth the Next Step?, by Linda Levine.

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CRS-12
Figure 3. Real Weekly Earnings, All Male
Workers, 1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).
Figure 4. Real Weekly Earnings, All Female
Workers, 1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).

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CRS-13
Full-Time, Year-Round Workers
From 1979 to 2007, the average real weekly earnings of full-time, year-round
workers increased by 13.7%. Earnings increased at all percentiles. The largest
increase, 28.8%, occurred among workers at the 95th percentile.
The trend in real weekly earnings of workers employed full-time, year-round
differs from the pattern of earnings for all workers.
! The earnings of full-time, year-round workers are higher than the
earnings of all workers. (Compare Figure 2 and Figure 5.)
! From 1979 to 2007, the earnings of workers employed full-time,
year-round increased less than the earnings of all workers. For
example, for full-time, year-round workers, earnings at the 20th
percentile increased by 2.9% compared to an increase of 19.5% for
all workers.
Figure 5. Real Weekly Earnings, Full-Time, Year-
Round Workers, 1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).
! From 1979 to 2007, the earnings of all lower-wage men were
relatively unchanged, but earnings among men employed full-time,

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CRS-14
year-round fell. At the 20th and 40th percentiles, the earnings of all
men were up by 3.6% and down by 2.9%, respectively. But, for men
employed full-time, year-round, earnings fell by 9.7% and 6.9%,
respectively. (From 1979 to 2007, the earnings of lower-wage
women employed full-time, year-round increased, but by less than
the increase in earnings among all lower-wage women.)
As was the case with all workers, the average real weekly earnings of women
employed full-time, year-round increased more than the earnings of men (37.7% and
9.7%, respectively). At all percentiles, the earnings of women working full-time,
year-round increased more than the earnings of men. For example, compared to the
decline in earnings among men at the 20th and 40th percentiles, the earnings of women
increased by 7.3% and 25.2%, respectively. (Compare Figures 6 and 7.)
Figure 6. Real Weekly Earnings, Male Full-Time,
Year-Round Workers, 1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).

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CRS-15
Figure 7. Real Weekly Earnings, Female Full-
Time, Year-Round Workers, 1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).
Fringe Benefits
Total compensation consists of wages and fringe benefits. This section
examines the trends in employment-based health insurance and pension coverage.
Employment-based coverage consists of health insurance or pension plans provided
by an employer or union. Workers who are not covered by an employment-based
health insurance plan may purchase insurance from a private insurance company, or
they may be covered by a public insurance program (e.g., Medicaid or Medicare).
Workers may also contribute to an Individual Retirement Account (IRA).14 This
report only takes into account employer-provided health insurance and pension plans.
The report does not examine the cost of health insurance or the amount that
employers contribute to employee retirement plans.

For the analysis in this section, workers are divided into quintiles. Workers are
first ranked from lowest to highest paid. Workers are then divided into five equal-
size groups, or quintiles. The top quintile is further divided into two groups: the top
5% of earners and the top 81% to 95% of earners.
14 For information on the types of IRAs, see CRS Report RL31770, Individual Retirement
Accounts and 401(k) Plans: Early Withdrawals and Required Distributions, by Patrick
Purcell.

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CRS-16
Employment-Based Health Insurance
The CPS has consistent information on employment-based health insurance
coverage from 1987 to the present. However, because of changes in the survey, some
of the data since 1987 are not entirely comparable. For example, in 1994 the health
insurance questions in the CPS were redesigned.15 These changes resulted in higher
estimates of the number of persons with employment-based health insurance. The
reported change in health insurance coverage between 1993 to 1994 cannot be
separated into the effects of the change in the survey questions and the actual change
in coverage. Therefore, in Figure 8 and Figure 9, the period from 1987 to 2007 is
separated into two subperiods: 1987 to 1993 and 1994 to 2007. Also, in this section
of the report and in Table 3 and Table 4 in the Appendix, the changes in coverage
from 1987 to 2007 are the sum of the percentage point changes over each of the two
subperiods; that is, the sum of the percentage point change from 1987 to 1993 and
the change from 1994 to 2007.16
All Workers. Four features characterize the trend in employment-based health
insurance coverage from 1987 to 2007.17
! Workers with higher earnings are more likely to have health
insurance. In 2007, 84.7% of the top 5% of earners had coverage,
compared to 46.8% of workers in the lowest quintile.
15 U.S. Census Bureau, Income, Poverty, and Health Insurance Coverage in the United
States: 2006, Current Population Reports, P60-233, U.S. Govt. Print. Off., August 2007,
available at [http://www.census.gov/prod/2007pubs/p60-233.pdf], p. 58.
16 Other changes in the CPS may affect the comparability of health insurance data over time.
The Census Bureau has released revised data on health insurance coverage for the years
1996 to 2005. Because of these revisions, the estimated number of persons with
employment-based health insurance increased slightly. This report does not take these
revisions into account. Also, in 2000, the CPS added questions to verify that people who
answered “no” to all questions about specific types of insurance were actually uninsured.
This change also increased slightly the estimated number of persons with employment-based
health insurance. Cheryl Hill Lee and Sharon M. Stern, Health Insurance Estimates from
the U.S. Census Bureau: Background for a New Historical Series, U.S. Census Bureau,
June 2007, at [http://www.census.gov/hhes/www/hlthins/usernote/revhlth_paper.pdf], pp.
8, 16.
For additional information on health insurance issues, see CRS Report RL32237,
Health Insurance: A Primer, by Bernadette Fernandez; CRS Report RL34389, Health
Insurance Reform and the 110th Congress, by Jean Hearne; and CRS Report RS22735,
Spending by Employers on Health Insurance: A Data Brief, by Jennifer Jenson.
17 The analysis in this report is of employment-based health insurance coverage only. It does
not include coverage of self-employed persons. The self-employed may have private health
insurance if they purchase an individual policy or they are covered under someone else’s
policy. For more information on health insurance coverage, see CRS Report 96-891, Health
Insurance Coverage: Characteristics of the Insured and Uninsured Populations in 2007,
by Chris L. Peterson and April Grady.

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CRS-17
! From 1987 to 2007, the percentage of workers with health insurance
coverage declined at all earnings levels. Coverage declined among
both men and women.
! The decline in health insurance coverage was greatest for lower-
wage workers. (See Figure 8.) At the lowest quintile, the
percentage of workers with health insurance fell by 9.4 percentage
points, compared to a 5.2 percentage point decline for the top 5% of
earners.18 At the lowest quintile, coverage fell by 8.0 percentage
points among men and by 10.0 percentage points among women.
! Among middle-wage workers (i.e., workers at the second, third, and
fourth quintiles), the decline in health insurance coverage was
greater for men than women. Among men at the second, third, and
fourth quintiles, coverage fell by 8.3, 6.1, and 8.3 percentage points,
respectively. Coverage among women at these quintiles fell by 3.5,
1.3, and 2.0 percentage points, respectively.
Figure 8. Employment-Based Health Insurance
Coverage, All Workers, By Quintile, 1987-2007
Source: CRS analysis of data from the Current Population Survey (CPS).
Note: Because of changes in the design of the health insurance questions in
1994, the percentage of workers with employment-based health insurance is
separated into two subperiods: 1987-1993 and 1994-2007.
18 Unless stated otherwise, the comparisons of percentage differences or changes discussed
in this report are significant at either the 95% or 90% confidence levels. See the Appendix
for an explanation of confidence levels.

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CRS-18
During the 20-year period, employment-based health insurance coverage
generally declined from 1987 to the early 1990s, increased or was relatively stable
to about 2000, and then declined again from about 2000 to 2007. For example, at the
second, third, and fourth quintiles, the percentage of workers with employment-based
health insurance declined from 1987 to 1993, increased from 1994 to 2000, and then
declined from 2000 to 2007.
From 2006 to 2007, coverage among all workers at the third quintile increased
by a statistically significant 1.1 percentage points. Over the same two-year period,
coverage among women at the fourth quintile increased, but decreased among women
at the highest quintile (i.e., at the 81st percentile and above). (See Table 3 in the
Appendix.)
Full-Time, Year-Round Workers. Figure 9 shows the percentage of full-
time, year-round workers with employment-based health insurance. Workers with
higher earnings are more likely to be covered by employment-based health insurance.
On the other hand, from 1987 to 2007, the percentage of full-time, year-round
workers with employment-based health insurance declined at all earnings levels. As
was the case with all workers, from 1987 to 2007, the decline in coverage was greater
at both the beginning and end than in the middle of the period.
From 1987 to 2007, the decline in insurance coverage was greatest for lower-
wage workers. At the lowest and second quintiles, coverage declined by 9.8 and 10.5
percentage points, respectively, compared to a 4.7 percentage point decline among
the top 5% of earners.
During the 20-year period from 1987 to 2007, health insurance coverage
declined among both men and women. But, the decrease was greater for lower- and
middle-wage men (i.e., men at the first four quintiles) than for lower- and middle-
wage women. For example, at the lowest quintile, coverage fell by 10.7 percentage
points among men, compared to a 6.9 percentage point drop among women. At the
second, third, and fourth quintiles, coverage among men fell by 11.4, 9.1, and 7.8
percentage points, respectively. Among women at these quintiles, coverage fell by
8.7, 3.1, and 3.7 percentage points, respectively. (See Table 4 in the Appendix.)

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CRS-19
Figure 9. Employment-Based Health Insurance
Coverage, Full-Time, Year-Round Workers,
By Quintile, 1987-2007
Source: CRS analysis of data from the Current Population Survey (CPS).
Note: Because of changes in the design of the health insurance questions in
1994, the percentage of workers with employment-based health insurance is
separated into two subperiods: 1987-1993 and 1994-2007.
Employer- or Union-Provided Pension Plans
All Workers. Workers with higher earnings are more likely to participate in
an employer or union provided pension plan. In 2007, 62.9% of the top 5% of
earners were covered by such a plan, compared to 9.8% of workers in the lowest
quintile. Relative to higher-wage workers, however, participation among lower-wage
workers in an employer or union provided pension plan improved from 1979 to
2007.19 At the lowest quintile, participation increased by 2.4 percentage points (from
7.4% to 9.8%), but declined by 2.1 percentage points (from 64.9% to 62.9%,
rounded20) among the top 5% of earners. The improved participation of lower-wage
workers was due entirely to increased participation among women. At the lowest
19 The analysis in this section includes wage and salary workers in both the private and
public sectors as well as self-employed workers. Public sector and self-employed workers
are not covered by the Employee Retirement Income Security Act of 1974 (ERISA, P.L. 93-
406), which is the federal law that governs employer-provided pension plans. For more
information on pension plan coverage, see CRS Report RL30122, Pension Sponsorship and
Participation: Summary of Recent Trends, by Patrick Purcell.
20 Although coverage decreased by 2.1 percentage points from 1979 to 2007, coverage
rounds to 64.9% in 1979 and 62.9% in 2007.

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CRS-20
quintile, over the 28-year period there was no change in participation among men, but
a 3.4 percentage point increase (from 5.3% to 8.7%) among women. At the second
quintile, participation among men fell by 4.8 percentage points (from 32.9% to
28.1%), but increased by 6.8 percentage points (from 18.0% to 24.8%) among
women. (See Figure 10 and Table 5 in the Appendix.)
From 1979 to 2007, participation in an employer-based pension plan among
middle-wage men — that is, men at the second, third, and fourth quintiles — fell, but
participation among middle-wage women increased. Among men at these quintiles,
participation fell by 4.8, 8.3, and 11.8 percentage points, respectively. Participation
among women increased by 6.8, 11.5, and 8.9 percentage points, respectively.
Although there was some variation from year-to-year, during the period from
1979 to 2007, participation in an employer or union pension plan generally declined
from the early to the late 1980s, increased from the late 1980s to about 2000,
declined again from about 2000 to 2006, and increased from 2006 to 2007. From
2006 to 2007, except for workers at the lowest two quintiles, participation of
employees in a pension plan increased at all earnings levels.
Figure 10. Participation in an Employer- or
Union-Provided Pension Plan, All Workers,
By Quintile, 1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).

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CRS-21
Full-Time, Year-Round Workers. For full-time, year-round workers, the
trend in participation in an employment-based pension plan differed from the trend
for all workers.
! Lower-wage full-time, year-round workers were more likely than all
lower-wage workers to participate in an employer or union pension
plan. In 2007, at the first and second quintiles, 22.2% and 44.5% of
full-time, year-round workers were participants in an employer or
union pension plan, compared to 9.8% and 26.2% of all workers at
these quintiles.
! Among full-time, year-round workers, except for the top 5% of
earners, participation declined at all quintiles from 1979 to 2007.
! From 1979 to 2007, participation among lower- and middle-wage
men declined more than among lower- and middle-wage women. At
the lowest quintile, participation among men fell by 8.7 percentage
points (from 28.7% to 20.0%), compared to a 3.3 percentage point
drop (from 27.3% to 23.9%, rounded) among women. Among men
at the second, third, and fourth quintiles, participation fell by 14.3,
13.4, and 10.0 percentage points, respectively. Participation among
women at these quintiles was relatively unchanged.
Similar to the trend among all workers, participation in an employment-based
pension plan generally fell from the early to the late 1980s, increased from the late
1980s to about 2000, and declined again from about 2000 to 2006. Except for
workers in the lowest quintile and the top 5% of workers, pension coverage increased
from 2006 to 2007. (See Figure 11 and Table 6 in the Appendix.)

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CRS-22
Figure 11. Participation in an Employer- or Union-
Provided Pension Plan, Full-Time, Year-Round
Workers, By Quintile, 1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).
The Distribution of Weekly Earnings
This section examines the trend in the distribution of weekly earnings from 1979
to 2007. Different measures of inequality provide different information and can lead
to different conclusions about the trend in the distribution of earnings. Most
measures identify whether inequality has changed over time or whether inequality is
greater among some groups of workers than among others. But some measures may
not reveal how inequality has changed over time or differs among groups. This
report uses two measures of inequality: the Gini coefficient and the share of total
weekly earnings received by each quintile of workers. Together, the two measures
show whether the distribution of earnings has changed over time and, if so, how it
has changed.
Topcoded Earnings
To protect the confidentiality of survey participants, the CPS data available for
public use have an earnings amount assigned to higher-earning workers. Over time,
changes in these amounts, or topcodes, can affect the observed trend in inequality.
In the CPS, total annual earnings consist of wages and salaries as well as farm
and nonfarm self-employment income. Wages and salaries are further separated into

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CRS-23
earnings from a worker’s longest job and “other” wage and salary earnings (e.g., from
another or a second job). Before 1996, each source of earnings was topcoded at the
same amount. Since 1996, each source of earnings has been given a unique topcode.
Currently, the top code for earnings from a worker’s longest job is $200,000. The
topcode for “other” wages and salaries is $35,000. If someone’s longest job was as
a wage and salary worker, but they also had earnings from self-employment, the
topcode from self-employment is $50,000. If the income from self-employment is
from farming, the topcode is $25,000.
Before 1996, if earnings were topcoded, reported earnings were the topcoded
amount. For example, for 1995, earnings were topcoded at $99,999. For anyone
who earned more than $99,999, the CPS reported their earnings as $99,999. Since
1996, for workers with earnings above the topcoded amounts, reported earnings are
the average of earnings for workers with similar characteristics. Average earnings
are calculated for persons based on gender, race, ethnicity, and whether or not they
work full-time, year-round. For 2007, earnings from a person’s longest job were
topcoded at $200,000. For white males who worked full-time, year-round and who
earned more than $200,000, the CPS reported average earnings of $419,969 (i.e., the
average earnings of white, male, full-time, year-round workers who earned more than
$200,000).
The change in 1996 in the way topcoded earnings are reported (i.e., average
earnings as opposed to the actual topcode amounts) can affect the observed trend in
inequality. For years before 1996, several economists who were given access to
internal CPS data, calculated average earnings for persons with earnings above the
topcoded levels. Like average earnings above the topcoded amounts reported by the
CPS since 1996, the economists calculated average earnings for persons based on
gender, race, ethnicity, and whether or not they work full-time, year-round. Their
results are reported in a paper published by the National Bureau of Economic
Research (NBER).
For consistency over the period from 1979 through 2007, this report uses
average earnings above the topcoded amounts as reported by the CPS for the years
1996 and later and average earnings as published in the NBER report for the years
before 1996.21
Because of continuing concerns about confidentiality and because of questions
about the reliability of responses from persons who claim to have very high earnings,
internal CPS data are also subject to a form of topcoding. Between 1984 and 1985,
the cap on annual earnings in the internal CPS was raised from $99,999 to $250,000.
Between 1992 and 1993, the cap was raised from $299,999 to $999,999.22 The large
increase in 1993 had a significant effect on the average amount of earnings for the
21 Larrimore, Jeff, Richard V. Burkhauser, Shuaizhang Feng, and Laura Zayatz, Consistent
Cell Means for Topcoded Incomes in the Public Use March CPS (1976-2007), National
Bureau of Economic Research, Working Paper 13941, April 2008, available at
[http://www.nber.org/papers/w13941], pp. 29-31, 33-36.
22 Ibid., p. 49.

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CRS-24
highest paid workers, which, in turn, affected the observed change in inequality from
1992 to 1993.
Because of the effect of changes in the internal CPS data from 1992 to 1993, in
this report the graphical representations of the Gini coefficient are separated into two
periods: 1979 to 1992 and 1993 to 2007. Similarly, in the graphs of the share of
earnings received by quintile, the share of earnings received by the top 5% of workers
is separated into two subperiods. In addition, in the discussion of the change from
1979 to 2007 in the share of total weekly earnings received by the top 5% of earners,
the percentage point change is the sum of changes over the two subperiods.
Gini Coefficient
The Gini coefficient is a measure of earnings equality that ranges from 0 to 1.
If the earnings of all individuals are the same, the Gini coefficient is equal to 0,
representing complete equality. If one worker receives all of the earnings and all
other workers receive zero earnings, the Gini coefficient is equal to 1. Thus, a larger
coefficient indicates a greater degree of inequality. More information on the Gini
coefficient is provided in the Appendix.
All Workers. Inequality increased among all workers over the period from
1979 to 2007. Inequality also increased among both men and women. From 1979
to 2007, periods of rising inequality were followed by periods when inequality fell.
In general, inequality increased from 1980 to 1989, then declined slightly from 1989
to 1992, before rising again from 1993 to 1995. A decline in inequality from 1995
to 1999 was offset by an increase in inequality from 1999 to 2005. Inequality fell
from 2005 to 2007. Even within this general pattern, however, there were some year-
to-year variations in the trend in inequality. (See Figure 12.)
From 1979 to 2007, inequality increased more among men and women,
analyzed separately, than among men and women analyzed together. One
explanation for this difference is that, at the same time that overall inequality
increased, the distribution of earnings among women became more similar to the
distribution of earnings among men — as reflected in the narrowing of earnings gap
between men and women.
Although overall inequality declined from 2005 to 2007, among women it
increased from 2005 to 2006 and then declined from 2006 to 2007.

---

CRS-25
Figure 12. Gini Coefficient, All Workers,
1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).
Note: Because of changes in topcoding from 1992 to 1993, the Gini
coefficient is separated into two subperiods: 1979-1992 and 1993-2007.
Full-Time, Year-Round Workers. The distribution of earnings among
workers employed full-time, year-round is more equal than the distribution of
earnings among all workers. Nevertheless, from 1979 to 2007, inequality also
increased among persons who work full-time, year-round. Periods of rising
inequality were followed by periods when inequality declined. From 2006 to 2007,
the distribution of earnings became more equal.
Inequality among women is significantly lower than inequality among men. But
inequality among men and women, analyzed separately, increased more than
inequality among all full-time, year-round workers. (See Figure 13.)

---

CRS-26
Figure 13. Gini Coefficient, Full-Time, Year-Round
Workers, 1979-2007

Source: CRS analysis of data from the Current Population Survey (CPS).
Note: Because of changes in topcoding from 1992 to 1993, the Gini
coefficient is separated into two subperiods: 1979-1992 and 1993-2007.
The Share of Total Weekly Earnings by Quintile
The Gini coefficient shows whether the distribution of earnings has changed
over time, but it does not show where the distribution may have changed. To analyze
where the earnings distribution has changed, this section examines the share of total
weekly earnings received by each quintile of workers.
All Workers. An analysis of the share of total weekly earnings by quintile
shows that inequality was greater in 2007 than in 1979. At the end of the period, the
top 5% of earners received a larger share of total weekly earnings, while other
workers received a smaller share. For example, from 1979 to 2007, the share of
earnings received by the top 5% of earners increased by 2.6 percentage points.
Over the 28-year period, when inequality increased it was generally because the
top 5% of earners received a larger share of total earnings, while other workers
received a smaller share. Conversely, when inequality declined, it was generally
because the top 5% of earners received a smaller share of total earnings and other
workers received a larger share. (See Figure 14.) From 2006 to 2007, the share of
total earnings received by the top 5% of workers dipped slightly (from 24.9% to
24.3%). Changes in the share of earnings received by men and women generally
followed the same pattern as the trend for all workers. (See Table 8 in the
Appendix. The percentage point changes over the different periods shown in Table
8 match the years over which the Gini coefficient increased or decreased over the 28-
year period.)

---

CRS-27
Figure 14. Share of Total Weekly Earnings by
Quintile, All Workers, 1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).
Note: Because of changes in topcoding from 1992 to 1993, the share of
earnings received by the top 5% of earners is separated into two subperiods:
1979-1992 and 1993-2007.
Full-Time, Year-Round Workers. Inequality also increased among full-
time, year-round workers from 1979 to 2007. Over the period, the top quintile of
earners gained a larger share of total weekly earnings, while the first four quintiles
received a smaller share. From 1979 to 2007, the share of earnings received by the
top 5% of earners increased by 1.5 percentage points. The share of earnings received
by the second and third quintiles fell by 1.5 and 1.6 percentage points, respectively.
Similar to the pattern among all workers, when inequality increased among full-time,
year-round workers, the share of earnings received by the bottom four quintiles
generally decreased, while the share received by the top quintile — especially the top
5% of earners — increased. Conversely, when inequality fell, the opposite occurred.
(See Figure 15.) The same pattern generally held for both men and women.
Inequality declined from 2006 to 2007. Over the two-year period, the share of total
earnings received by the top 5% of earners fell from 22.4% to 20.7%, while the share
of earnings received by the bottom four quintiles increased.

---

CRS-28
Figure 15. Share of Total Weekly Earnings by
Quintile, Full-Time, Year-Round Workers,
1979-2007
Source: CRS analysis of data from the Current Population Survey (CPS).
Note: Because of changes in topcoding from 1992 to 1993, the share of
earnings received by the top 5% of earners is separated into two subperiods:
1979-1992 and 1993-2007.
Reasons for Changes in the Share of Total Weekly Earnings by
Quintile. The share of earnings received by workers at each quintile may change
for many reasons. The relative number of hours worked may change and relative
earnings per hour may change. As discussed at the beginning of this report, both the
percentage of workers employed full-time and the percentage of workers employed
full-time, year-round tend to fall during recessions. During an economic expansion,
as the demand for labor increases, both hours worked and earnings per hour often
rise, especially among lower-wage workers.23 For example, the data on real weekly
earnings in Table 1 in the Appendix show that, when inequality fell from 1995 to
1999, the real weekly earnings for workers at the 20th percentile increased by 12.3%,
compared to a 12.6% increase for workers at the 95th percentile. Conversely, when
inequality increased from 1980 to 1989, earnings at the 20th percentile rose by 1.1%,
but increased 13.4% at the 95th percentile.
Several other factors may also affect relative earnings. The supply of and
demand for workers with different skills may change. Changes in consumer tastes
or technology may affect the demand for labor. Social and demographic changes
23 During an economic expansion, in order to hire more workers, employers may offer higher
wages. Employers may also ask workers to work, or require, more overtime. Both of these
changes would increase total weekly earnings.

---

CRS-29
may affect the supply of labor. Changes in wages may affect both the demand for
and the supply of labor. Congress may enact policies that affect earnings. For
example, during the period from 1979 to 2007, Congress passed four laws that raised
the basic federal minimum wage.24 Following welfare reform in 1996, the
employment of single mothers increased significantly.25 Regulatory changes or
changes in trade policy may affect earnings. U.S. firms may engage in greater
outsourcing. Foreign companies may increase investment in the United States. Each
of these changes may affect the distribution of workers in different occupations and
industries. For example, the decline in manufacturing employment in the United
States since 1979 (when employment peaked at 19.4 million) may have affected both
wages and fringe benefits.26 Union membership in the United States, which also
peaked in 1979 (at 21.0 million), may also have affected earnings and fringe
benefits.27 Separating the effect of each of these (and other) factors on earnings and
fringe benefits is difficult, however. In addition, economists may not agree on the
effects of each factor.
24 The first law (P.L. 95-151) raised the minimum wage in January 1979, January 1980, and
January 1981. The second law (P.L. 101-157) raised the wage in April 1990 and April 1991.
The third law (P.L. 104-188) raised the wage in October 1996 and September 1997. In
2007, Congress enacted P.L. 110-28, which raised the minimum wage, in steps, from $5.15
to $7.25 an hour. The minimum wage rose to $5.85 in July 2007 and to $6.55 in July 2008.
It will rise to $7.25 an hour in July 2009. CRS Report RL33754, Minimum Wage in the
110th Congress, by William G. Whittaker.
25 Among other things, the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (P.L. 104-193) set a time limit on cash welfare assistance and imposed greater
work requirements on welfare recipients. CRS Report RL32760, Temporary Assistance for
Needy Families (TANF) Block Grant: Responses to Frequently Asked Questions, by Gene
Falk.
26 From 1979 to 2007, employment in manufacturing in the United States fell from 19.4
million to 13.9 million, a decrease from 21.6% to 10.1% of total nonfarm employment. U.S.
Department of Labor, Bureau of Labor Statistics, Employment, Hours, and Earnings from
the Current Employment Statistics Survey, available at [stats.bls.gov/ces/home.htm].
27 Research has concluded that union workers generally earn more than nonunion workers.
CRS Report RL32553, Union Membership Trends in the United States, by Gerald Mayer.

---

CRS-30
Appendix: Measures of Inequality,
Data, and Methodology
This Appendix provides an explanation of the measures of inequality used in
this report. It also describes the source of data and the methodology used in the
report. The second part of the Appendix shows the data used in the text and graphs
in the report.
Measures of Inequality
This report uses two measures of inequality: the Gini coefficient and the share
of earnings received by each quintile of workers.
Gini Coefficient. The Gini coefficient is calculated using the following
formula:
where f is the proportion of earners in interval (i) and p is the proportion of total
i
i
earnings received by earners in interval 1 and all lower intervals.28
Graphically, the Gini coefficient is illustrated in Figure 16. The horizontal axis
shows the percent of all earners; the vertical axis shows the percent of earnings
received by all earners. The diagonal line represents total earnings equality. For
example, on the diagonal line, 25% of earners receive 25% of earnings, 50% of
earners receive 50% of earnings, and so on.
In Figure 16 the two dotted lines — called Lorenz curves — illustrate two
possible earnings distributions. The Gini coefficient is the ratio of (a) the area
between the diagonal line and the Lorenz curve and (b) the total area under the
diagonal line. The two earnings distributions in Figure 16 may represent the
earnings for two groups of workers — or the same group of workers at different
times. The distribution of earnings for the first group (where the Gini coefficient is
.163) is more equal than the distribution of earnings for the second group (where the
Gini coefficient is .289). For the first group of workers, the bottom 60% of workers
receive half of all earnings; the top 40% receive the other half of earnings. In the
second group, the bottom 70% of earners receive half of all earnings; the top 30%
receive the other half.
Share of Total Earnings by Quintile. To calculate the share of earnings
received by each quintile of earners, workers are first ranked from lowest to highest
paid. Workers are then divided into five equal-size groups, or quintiles. The total
earnings received by each quintile is divided by the total earnings of all workers. If
28 U.S. Bureau of the Census, Studies in the Distribution of Income, Series P60-183, 1992,
p. 60.

---

CRS-31
everyone’s earnings were the same, each quintile would receive one-fifth of all
earnings. The greater the share of earnings received by the highest paid workers (i.e.,
the top quintile) or the smaller the share of earnings received by the lowest paid
workers (i.e., the lowest quintile) the greater the degree of inequality. In this report,
the top quintile of earners is further separated into two groups: the top 5% of earners
and the top 81% to 95% of earners.
Data Source and Methodology
The analysis in this report uses data from the Annual Social and Economic
(ASEC) supplement to the monthly Current Population Survey (CPS). The CPS is
a household survey conducted by the U.S. Bureau of the Census for the Bureau of
Labor Statistics (BLS) of the U.S. Department of Labor. The monthly CPS is the
source of the national monthly unemployment rate and other labor force data.
Figure 16. Illustration of Lorenz Curves and Gini
Coefficients for Two Groups of Workers
Source: Illustration created by CRS.
The ASEC supplement to the monthly CPS asks additional questions about
individual earnings for the previous year. The sample is representative of the civilian
noninstitutional population of the United States. The sample for the supplement
includes members of the Armed Forces living in civilian housing units on a military
base or in a household not on a military base. The sample does not include persons
living in institutions (such as mental hospitals, nursing homes, or correctional
facilities). The 2008 supplement interviewed about 76,600 households.29
29 U.S. Census Bureau, Current Population Survey, 2008 Annual Social and Economic
(continued...)

---

CRS-32
The ASEC supplement collects earnings information for both wage and salary
workers and self-employed persons. Some workers may have both wage and salary
income and self-employment income. In addition, self-employed persons may have
both wages and income or loss from investment in their business (e.g., in equipment,
buildings, office space, materials, supplies, and other kinds of capital). Since wages
cannot be negative, this report uses positive earnings only; i.e., it excludes persons
whose investment losses were greater than their wage. But this approach may
include investment losses if a person combines their wage and investment loss and
their wage is greater than their investment loss. The approach may also include
investment income, if a person reports his or her earnings as the total of their wage
and investment income. Excluding persons with negative earnings has little or no
effect on the real earnings by percentile shown in this report. Including persons with
negative earnings increases the level of inequality, but has little or no effect on the
trend in inequality.
In Tables 1 and 2, comparisons of real earnings between consecutive years
should be made with caution. When answering the question about annual earnings,
some respondents may round off their earnings. For example, many people may
report that they earn $50,000 a year, when they earn either more or less than $50,000.
From one year to the next, this rounding may affect the observed trend in real weekly
earnings.
CPI-U-RS. In this report, nominal weekly earnings were adjusted for inflation
using the CPI-U-RS (the Consumer Price Index for all Urban Consumers Research
Series).
Over the years, BLS has introduced a number of changes in the way it measures
changes in prices. Each improvement is intended to make the CPI-U more accurate.
But the historical CPI-U is not adjusted to take the improvements into account. The
CPI-U-RS adjusts the historical CPI-U (starting in 1978) to take into account most
of the improvements made in measuring price changes. The CPI-U-RS shows what
the CPI-U would have been if current methods had been used to measure inflation.
Compared to the CPI-U, the CPI-U-RS provides a more consistent measure of
inflation.30
Topcoded Earnings. In the ASEC supplement, if a person’s annual earnings
exceed a certain amount (i.e., a topcode), the individual’s actual earnings are not
reported. Instead, the CPS reports the average earnings of those persons whose
earnings are above the topcoded amount. For 2007 (i.e., the 2008 ASEC), annual
earnings from a person’s longest job were topcoded at $200,000. BLS averages
earnings for several groups of workers, based on gender, race, Hispanic origin, and
work experience. For example, the CPS reports average earnings for all white, non-
Hispanic men who work full-time, year-round and whose earnings for their longest
29 (...continued)
(ASEC) Supplement, available at [http://www.census.gov/apsd/techdoc/cps/cpsmar08.pdf],
pp. 1-1, 9-3, G-2.
30 Stewart, Kenneth J, and Stephen B. Reed, “Consumer Price Index Research Series Using
Current Methods, 1978-98,” Monthly Labor Review, vol. 122, June 1999, p. 29.

---

CRS-33
held job are over $200,000. To arrive at total annual earnings, this amount is added
to any earnings from other employment (e.g., a person may have held more than one
job during the year).
In this report, topcoding may affect the measures of inequality in two ways.
First, because of topcoding, the Gini coefficient may understate the degree of
inequality. Topcoding should have less of an effect on the estimates of real weekly
earnings or the estimates of the share of total weekly earnings by quintile. Second,
as described in the text of this report, because of changes in 1994 (affecting annual
earnings for 1993) in the way the CPS recorded the earnings of the highest paid
workers, the observed trend in inequality may not be comparable for years 1979 to
1992 and the years 1993 and later.
Confidence Levels. Estimates based on survey responses from a sample of
households have two kinds of error: nonsampling and sampling. Examples of
nonsampling error include information that is misreported and errors made in
processing collected information. Sampling error occurs because a sample, and not
the entire population, of households is surveyed. The difference between an estimate
based on a sample of households and the actual population value is known as
sampling error. When using sample data, researchers typically construct confidence
intervals around population estimates. Confidence intervals provide information
about the accuracy of estimated values. With a 95% confidence interval and repeated
samples from a population, 95% of intervals will include the average estimate of a
population characteristic.
Data Used in Text and Graphs
The remainder of this Appendix provides the data used in the text and graphs
in this report. In Tables 8 and 9, the percentage point changes over the different
periods shown are intended to match the years over which the Gini coefficient
increased or decreased over the 28-year period.

---

CRS-34
Table 1. The Trend in Real Weekly Earnings: All Workers, 1979-2007
Earnings
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
All Workers
Average Earnings
$660
$644
$634
$636
$638
$643
$663
$688
$692
$701
$718
$703
$698
$704
$733
$753
20th Percentile
244
240
226
222
223
219
226
229
234
232
242
239
240
245
239
244
40th Percentile
426
416
418
402
398
402
421
417
433
428
437
444
428
434
431
426
60th Percentile
639
626
625
617
611
621
636
660
672
664
678
663
668
668
674
665
80th Percentile
973
949
938
952
951
950
990
1,023
1,007
1,017
1,035
1,020
1,004
1,015
1,033
1,054
95th Percentile
1,587
1,560
1,525
1,587
1,579
1,635
1,654
1,736
1,679
1,694
1,770
1,745
1,713
1,754
1,775
1,862
Men
Average Earnings
843
817
803
801
801
805
830
867
863
877
895
864
853
854
897
925
20th Percentile
353
339
328
310
304
302
310
320
322
324
323
320
309
306
303
319
40th Percentile
614
582
561
555
552
548
551
572
571
583
580
562
562
557
543
538
60th Percentile
870
839
841
802
799
832
845
868
839
844
858
828
828
835
815
819
80th Percentile
1,177
1,152
1,138
1,155
1,141
1,170
1,202
1,215
1,239
1,231
1,242
1,201
1,199
1,207
1,223
1,250
95th Percentile
1,894
1,843
1,847
1,904
1,902
1,901
1,944
2,083
2,015
2,105
2,173
2,070
2,123
2,088
2,174
2,261
Women
Average Earnings
428
427
422
430
439
449
463
475
491
498
513
514
518
529
546
556
20th Percentile
174
176
168
168
166
168
173
174
175
175
186
185
186
193
190
193
40th Percentile
307
304
300
302
304
303
313
316
333
324
336
338
343
337
340
346
60th Percentile
438
440
429
436
457
450
459
481
497
489
503
503
514
529
530
532
80th Percentile
614
616
631
635
649
658
698
700
732
745
770
760
771
780
799
798
95th Percentile
962
958
968
992
1,027
1,048
1,060
1,128
1,175
1,182
1,242
1,242
1,256
1,274
1,318
1,330

---

CRS-35
Percent
Change,
Earnings
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
1979-2007
All Workers
Average Earnings
$764
$764
$789
$820
$813
$858
$872
$877
$873
$861
$876
$876
$874
25.9%
20th Percentile
249
253
258
269
280
289
293
288
283
285
294
297
292
19.5%
40th Percentile
442
456
465
489
479
501
504
510
516
507
511
494
500
17.4%
60th Percentile
675
683
704
733
719
741
751
771
759
739
743
771
769
20.4%
80th Percentile
1,039
1,038
1,065
1,099
1,149
1,158
1,149
1,153
1,171
1,161
1,168
1,187
1,154
18.6%
95th Percentile
1,871
1,898
1,982
2,003
2,106
2,107
2,228
2,216
2,168
2,111
2,173
2,175
2,212
39.4%
Men
Average Earnings
937
930
964
993
988
1,054
1,047
1,068
1,042
1,036
1,055
1,042
1,035
16.7%
20th Percentile
312
316
330
344
357
361
354
355
357
357
355
360
365
3.6%
40th Percentile
546
557
582
611
598
602
609
621
607
612
613
593
596
-2.9%
60th Percentile
831
828
867
879
905
905
901
887
902
887
882
890
900
3.4%
80th Percentile
1,247
1,265
1,262
1,319
1,364
1,389
1,351
1,383
1,409
1,372
1,381
1,384
1,365
16.0%
95th Percentile
2,223
2,278
2,428
2,443
2,489
2,524
2,590
2,660
2,602
2,629
2,655
2,610
2,653
40.1%
Women
Average Earnings
568
575
589
627
618
639
674
663
682
662
672
688
691
50.4%
20th Percentile
197
202
206
220
229
232
234
240
236
232
245
237
250
43.5%
40th Percentile
342
354
372
381
383
410
410
421
428
422
408
411
423
37.8%
60th Percentile
520
531
547
586
598
602
609
621
629
633
613
614
635
44.9%
80th Percentile
805
810
842
855
885
926
901
922
939
933
940
964
962
56.5%
95th Percentile
1,351
1,392
1,431
1,474
1,555
1,575
1,640
1,633
1,669
1,647
1,634
1,701
1,700
76.7%
Source: Calculated by CRS from the Annual Social and Economic (ASEC) supplement to the Current Population Survey (CPS).
Note: Weekly earnings are in 2007 dollars. Estimates are for persons age 16 and over.
a. Because of changes in topcoding that affected the change in average weekly earnings between 1992 and 1993, the percent change in earnings from 1979 to 2007 is the sum of changes
from 1979 to 1992 and 1993 to 2007.

---

CRS-36
Table 2. The Trend in Real Weekly Earnings: Full-Time, Year-Round Workers, 1979-2007
Percentile
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
All Full-Time, Year-Round Workers
Average Earnings
$839
$816
$807
$811
$808
$819
$838
$862
$866
$869
$888
$860
$854
$868
$901
$914
20th Percentile
430
424
421
401
403
402
424
417
419
421
430
414
414
418
408
401
40th Percentile
614
599
589
595
574
585
601
625
604
615
621
591
600
613
598
609
60th Percentile
819
813
799
793
791
804
816
833
839
842
838
828
828
835
815
825
80th Percentile
1,126
1,106
1,094
1,111
1,119
1,097
1,131
1,180
1,175
1,166
1,187
1,169
1,142
1,169
1,168
1,197
95th Percentile
1,792
1,751
1,716
1,785
1,819
1,828
1,802
1,909
1,880
1,943
1,987
1,922
1,941
1,949
2,011
2,062
Men
Average Earnings
985
957
948
952
947
958
981
1,009
1,012
1,014
1,036
992
987
1,002
1,042
1,054
20th Percentile
532
511
505
492
495
486
495
498
504
486
497
473
475
473
462
458
40th Percentile
768
737
732
714
723
731
707
729
739
745
745
710
714
696
679
683
60th Percentile
983
958
952
952
951
950
972
1,007
1,007
972
994
946
971
975
951
941
80th Percentile
1,280
1,244
1,262
1,270
1,275
1,279
1,308
1,354
1,343
1,334
1,366
1,331
1,326
1,342
1,359
1,330
95th Percentile
2,047
1,981
2,019
2,023
2,017
2,091
2,120
2,252
2,182
2,267
2,329
2,218
2,198
2,228
2,310
2,394
Women
Average Earnings
560
558
555
573
580
589
606
625
637
646
657
654
659
673
692
702
20th Percentile
358
346
337
345
342
347
353
347
353
356
363
355
356
362
353
351
40th Percentile
461
461
450
456
457
469
477
486
504
486
497
503
508
509
516
505
60th Percentile
563
553
568
595
590
597
618
625
638
648
652
651
657
693
679
665
80th Percentile
737
737
752
770
761
804
829
854
843
874
900
887
885
908
943
931
95th Percentile
1,024
1,050
1,052
1,088
1,141
1,135
1,187
1,246
1,259
1,296
1,316
1,331
1,370
1,392
1,359
1,463

---

CRS-37
Percent
Change,
Percentile
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
1979-2007
All Full-Time, Year-Round Workers
Average Earnings
$905
$925
$941
$961
$957
$999
$1,014
$1,014
$1,011
$1,004
$1,007
$1,012
$994
13.7% a
20th Percentile
405
409
421
440
431
440
450
443
434
435
429
435
442
2.9%
40th Percentile
598
607
619
635
643
648
653
665
650
633
633
633
650
5.8%
60th Percentile
826
830
862
855
873
880
901
887
879
878
878
890
885
8.0%
80th Percentile
1,169
1,212
1,239
1,221
1,268
1,273
1,306
1,330
1,301
1,267
1,307
1,285
1,320
17.2%
95th Percentile
2,026
2,024
2,106
2,199
2,287
2,315
2,252
2,327
2,385
2,322
2,390
2,373
2,308
28.8%
Men
Average Earnings
1,049
1,065
1,088
1,103
1,107
1,169
1,167
1,168
1,155
1,147
1,152
1,145
1,124
9.7% a
20th Percentile
468
478
495
489
488
486
495
488
499
486
490
481
481
-9.7%
40th Percentile
675
683
718
733
718
722
721
731
737
739
715
692
715
-6.9%
60th Percentile
935
960
991
977
1,005
1,028
1,013
997
1,019
1,013
1,021
989
981
-0.2%
80th Percentile
1,336
1,341
1,362
1,433
1,436
1,505
1,464
1,551
1,518
1,478
1,481
1,483
1,469
14.8%
95th Percentile
2,390
2,404
2,477
2,443
2,632
2,779
2,703
2,771
2,775
2,744
2,839
2,808
2,712
32.4%
Women
Average Earnings
690
719
728
752
744
758
799
797
810
802
800
823
813
37.7% a
20th Percentile
364
368
372
366
377
384
405
399
395
401
404
396
385
7.3%
40th Percentile
517
506
520
537
538
556
563
554
564
549
552
554
577
25.2%
60th Percentile
670
683
694
733
718
722
743
754
759
739
747
752
769
36.6%
80th Percentile
935
940
966
977
996
1,011
1,017
1,055
1,084
1,055
1,062
1,068
1,058
43.5%
95th Percentile
1,455
1,518
1,511
1,588
1,654
1,621
1,689
1,729
1,756
1,773
1,777
1,879
1,827
78.5%
Source: Calculated by CRS from the Annual Social and Economic (ASEC) supplement to the Current Population Survey (CPS).
Note: Weekly earnings are in 2007 dollars. Estimates are for persons age 16 and over.
a. Because of changes in topcoding that affected the change in average weekly earnings between 1992 and 1993, the percent change in earnings from 1979 to 2007 is the sum of changes
from 1979 to 1992 and 1993 to 2007.

---

CRS-38
Table 3. Employment-Based Health Insurance Coverage, All Workers by Quintile, 1987-2007
(percent)
Percentile
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
All Workers
Lowest Quintile
49.2
48.8
48.4
46.5
45.4
44.1
43.6
50.7
50.3
49.7
49.9
50.2
50.2
Second Quintile
60.0
58.6
59.3
57.3
57.6
53.4
53.9
57.7
57.9
57.6
58.6
59.2
60.2
Third Quintile
77.6
76.6
76.2
75.1
75.1
73.6
73.8
75.5
75.1
75.4
74.9
76.3
76.7
Fourth Quintile
85.6
85.8
86.5
84.5
84.8
83.3
82.1
84.9
84.9
85.6
85.4
85.3
86.3
81-95%
90.4
90.3
89.3
88.4
88.2
88.1
85.6
89.8
89.3
88.8
88.8
89.4
88.7
Top 5%
86.3
86.6
84.4
82.7
83.4
82.3
81.9
85.4
85.5
85.5
84.0
85.6
85.8
Men
Lowest Quintile
43.3
42.5
42.7
40.5
38.4
36.9
38.9
45.3
45.3
44.2
44.1
44.7
46.6
Second Quintile
61.0
58.0
58.6
57.0
57.1
52.6
53.8
57.4
56.8
57.9
58.5
60.2
60.4
Third Quintile
79.1
79.4
79.6
75.7
75.3
73.1
73.1
75.4
76.2
75.3
76.6
77.5
79.0
Fourth Quintile
88.2
87.7
87.6
85.8
85.5
84.1
83.0
86.6
86.0
86.5
86.5
86.5
86.7
81-95%
89.9
90.5
89.0
88.0
88.3
86.7
84.7
89.4
88.6
88.4
88.4
88.7
88.8
Top 5%
86.0
85.9
83.3
82.3
82.1
83.0
81.3
84.3
85.1
84.3
82.5
85.8
84.2
Women
Lowest Quintile
52.3
52.0
51.1
49.4
49.7
47.4
45.6
52.8
52.4
52.5
52.2
53.0
51.3
Second Quintile
57.9
58.3
58.6
56.1
56.2
55.3
54.2
58.4
58.3
57.0
57.6
57.9
58.3
Third Quintile
76.3
75.3
75.3
76.3
75.6
74.2
73.5
74.7
75.5
76.4
76.4
76.7
77.4
Fourth Quintile
86.4
86.4
86.8
85.5
86.6
85.2
84.2
86.8
84.8
86.3
85.5
85.6
86.4
81-95%
91.2
91.0
90.8
89.4
90.4
90.4
87.9
90.9
91.6
90.6
89.8
89.7
90.1
Top 5%
88.1
86.5
84.7
87.2
87.4
85.3
84.4
88.1
88.1
87.2
87.5
87.5
87.3

---

CRS-39
Change in
Change in
Change in
Change in
Percent,
Percent,
Percent,
Percent,
Percentile
2000
2001
2002
2003
2004
2005
2006
2007
1987-1993
1994-2000
2000-2007
1987-2007
All Workers
Lowest Quintile
51.3
49.6
48.6
47.3
48.2
47.2
47.2
46.8
-5.6
0.7
-4.5
-9.4 a
Second Quintile
62.1
61.5
60.2
58.1
58.5
58.0
57.8
57.4
-6.2
4.4
-4.7
-6.5
Third Quintile
78.8
78.0
76.4
75.8
75.4
75.5
75.1
76.2
-3.8
3.2
-2.6
-3.1
Fourth Quintile
86.7
86.6
85.4
84.7
84.8
84.8
83.8
83.8
-3.5
1.8
-3.0
-4.7
81-95%
89.2
89.0
88.4
88.1
88.1
87.4
87.5
87.5
-4.8
-0.6
-1.7
-7.0
Top 5%
86.7
85.4
83.8
84.3
85.9
86.4
84.6
84.7
-4.4
1.2
-2.0
-5.2
Men
Lowest Quintile
46.8
44.9
44.1
43.5
43.4
42.7
41.6
41.7
-4.4
1.5
-5.1
-8.0
Second Quintile
63.0
62.0
58.9
58.1
57.0
55.9
56.4
56.2
-7.2
5.6
-6.8
-8.3
Third Quintile
79.3
79.3
77.7
75.8
74.5
75.6
75.2
75.3
-6.0
3.9
-3.9
-6.1
Fourth Quintile
87.6
85.9
85.4
85.3
85.7
84.3
83.5
83.5
-5.2
1.0
-4.1
-8.3
81-95%
88.7
88.9
88.1
86.9
87.1
87.2
86.5
87.4
-5.2
-0.7
-1.3
-7.2
Top 5%
86.9
84.8
82.5
84.0
84.9
85.6
82.9
84.4
-4.8
2.6
-2.4
-4.6
Women
Lowest Quintile
53.2
52.1
50.3
49.2
50.8
49.9
49.3
49.5
-6.7
0.5
-3.8
-10.0
Second Quintile
60.9
60.7
60.1
57.5
58.0
58.8
59.0
58.6
-3.7
2.5
-2.3
-3.5
Third Quintile
79.6
78.0
77.8
75.9
76.5
77.0
76.2
76.3
-2.9
4.8
-3.3
-1.3
Fourth Quintile
86.9
87.5
86.8
86.2
87.6
86.4
85.8
87.1
-2.3
0.1
0.2
-2.0
81-95%
90.4
91.3
88.8
89.5
89.9
89.8
90.1
88.8
-3.2
-0.5
-1.6
-5.3
Top 5%
87.8
86.4
87.1
88.1
88.5
87.1
88.0
86.1
-3.7
-0.3
-1.7
-5.6
Source: Calculated by CRS from the Annual Social and Economic (ASEC) supplement to the Current Population Survey (CPS).
Notes: Estimates are for persons age 16 and over.
a. Because of changes in the CPS health insurance questions in 1994, the change shown from 1987 to 2007 is the sum of the change from 1987 to 1993 and from 1994 to 2007.

---

CRS-40
Table 4. Employment-Based Health Insurance Coverage, Full-Time, Year-Round Workers, by Quintile, 1987-2007
(percent)
Percentile
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
All Full-Time, Year-Round Workers
Lowest Quintile
59.2
58.9
58.4
55.8
56.8
53.4
53.3
55.4
55.4
55.8
55.0
54.3
55.5
Second Quintile
82.2
80.1
80.7
78.5
77.4
77.5
76.1
77.8
76.4
77.6
76.3
76.4
76.6
Third Quintile
87.6
87.0
86.7
85.4
86.6
85.3
83.8
84.6
83.5
84.1
84.8
84.5
85.9
Fourth Quintile
91.4
90.9
91.1
89.6
90.2
89.2
87.6
90.7
90.0
90.0
89.7
89.0
89.4
81-95%
92.4
93.1
91.1
90.9
90.9
90.5
88.1
92.1
91.3
90.7
90.5
90.9
91.2
Top 5%
88.8
89.5
86.4
86.7
85.6
85.7
85.0
88.9
88.1
88.8
87.5
88.5
88.7
Men
Lowest Quintile
55.4
53.5
53.9
50.2
51.4
48.4
48.2
50.1
52.1
51.1
51.0
50.1
51.1
Second Quintile
80.7
78.7
79.9
76.1
76.2
74.8
73.4
74.4
73.4
73.8
73.4
73.8
75.0
Third Quintile
88.4
87.7
87.1
85.1
84.9
84.8
82.7
84.8
83.3
85.1
85.2
84.8
86.3
Fourth Quintile
92.2
91.7
91.8
90.0
90.1
89.0
87.5
90.5
89.7
89.7
89.6
89.8
89.4
81-95%
91.8
92.9
90.1
90.0
90.0
88.6
86.8
91.6
90.4
90.6
90.0
89.9
90.8
Top 5%
88.2
89.7
86.4
86.7
86.5
86.6
84.2
88.0
88.3
88.5
86.3
88.7
87.7
Women
Lowest Quintile
60.3
60.8
60.7
58.8
59.9
56.4
56.8
59.2
57.7
58.5
57.5
57.6
56.1
Second Quintile
83.9
82.8
81.1
82.6
81.4
81.2
79.3
80.9
79.9
81.1
79.8
79.3
80.9
Third Quintile
89.2
88.6
88.6
88.7
88.1
87.5
87.9
88.7
84.5
86.8
86.3
86.0
87.4
Fourth Quintile
91.8
92.0
91.9
90.7
92.3
91.3
89.6
91.7
91.1
90.9
90.9
89.2
90.0
81-95%
94.0
94.5
93.2
92.0
92.8
93.1
90.0
93.6
94.4
92.8
91.7
92.1
93.0
Top 5%
91.6
89.0
89.4
90.5
89.7
88.9
88.6
92.2
91.1
89.8
91.7
90.4
90.0

---

CRS-41
Change in
Change in
Change in
Change in
Percent,
Percent,
Percent,
Percent,
Percentile
2000
2001
2002
2003
2004
2005
2006
2007
1987-1993
1994-2000
2000-2007
1987-2007
All Full-Time, Year-Round Workers
Lowest Quintile
55.9
55.9
55.2
52.0
52.5
50.9
50.6
51.6
-6.0
0.5
-4.3
-9.8 a
Second Quintile
78.3
76.5
74.4
74.7
74.0
73.8
72.7
73.3
-6.1
0.6
-5.0
-10.5
Third Quintile
86.1
86.5
85.4
83.9
83.7
84.1
83.4
83.6
-3.7
1.5
-2.5
-4.7
Fourth Quintile
90.2
89.9
88.7
89.0
89.0
88.4
87.7
88.0
-3.8
-0.5
-2.1
-6.4
81-95%
91.4
91.0
89.9
90.0
90.1
89.9
89.6
89.5
-4.3
-0.7
-1.9
-6.9
Top 5%
89.7
88.4
86.7
88.1
88.2
88.7
87.1
88.0
-3.8
0.8
-1.7
-4.7
Men
Lowest Quintile
51.3
51.5
49.3
47.7
47.6
46.1
45.0
46.6
-7.2
1.2
-4.7
-10.7
Second Quintile
76.9
74.8
72.5
73.3
70.8
70.6
69.9
70.3
-7.3
2.5
-6.6
-11.4
Third Quintile
85.8
85.9
84.9
82.9
82.1
82.4
82.2
81.4
-5.7
1.0
-4.4
-9.1
Fourth Quintile
90.2
89.3
88.7
88.0
88.0
87.5
86.8
87.4
-4.7
-0.3
-2.8
-7.8
81-95%
91.1
90.7
89.2
88.9
89.4
89.0
88.3
89.6
-5.0
-0.5
-1.4
-7.0
Top 5%
89.0
87.7
85.8
88.1
87.5
88.1
86.1
86.7
-4.0
1.0
-2.2
-5.3
Women
Lowest Quintile
58.0
58.0
57.5
54.5
55.7
55.7
55.5
55.7
-3.5
-1.1
-2.3
-6.9
Second Quintile
81.9
79.1
79.6
77.7
77.9
77.6
76.2
76.8
-4.6
1.0
-5.1
-8.7
Third Quintile
86.5
87.8
86.6
85.8
88.5
86.6
86.6
86.9
-1.3
-2.2
0.4
-3.1
Fourth Quintile
91.4
92.3
91.0
91.6
91.7
90.7
89.5
90.2
-2.1
-0.3
-1.3
-3.7
81-95%
93.6
93.8
91.5
91.9
91.6
92.9
92.8
91.8
-4.0
0.0
-1.8
-5.8
Top 5%
92.2
89.5
89.1
90.3
90.3
89.6
89.8
89.9
-3.0
0.0
-2.3
-5.3
Source: Calculated by CRS from the Annual Social and Economic (ASEC) supplement to the Current Population Survey (CPS).
Notes: Estimates are for persons age 16 and over.
a. Because of changes in the CPS health insurance questions in 1994, the change shown from 1987 to 2007 is the sum of the change from 1987 to 1993 and from 1994 to 2007.

---

CRS-42
Table 5. Employer- or Union-Provided Pension Coverage, All Workers, by Quintile, 1979-2007
(percent)
Percentile
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
All Workers
Lowest Quintile
7.4
7.0
6.2
5.9
5.8
5.6
5.9
6.1
5.5
5.9
6.3
6.8
6.6
6.3
6.3
7.6
Second Quintile
24.4
24.2
23.2
23.1
21.4
21.2
21.1
21.2
20.6
21.0
22.2
22.1
22.2
21.6
21.2
23.2
Third Quintile
46.2
46.6
45.7
44.3
45.0
43.4
43.3
43.5
41.4
41.3
42.3
43.2
44.2
43.8
43.3
45.1
Fourth Quintile
63.4
63.9
63.0
63.0
63.0
60.6
61.8
62.0
57.2
57.4
60.1
60.1
60.8
60.8
59.9
62.5
81-95%
73.7
73.0
73.4
71.9
71.4
71.5
72.3
70.5
68.8
69.2
69.8
70.1
71.3
71.5
69.7
72.1
Top 5%
64.9
66.2
66.9
65.6
65.0
64.0
65.4
64.3
61.6
63.5
61.7
61.7
63.4
64.7
62.4
65.6
Men
Lowest Quintile
9.0
9.1
7.9
7.2
6.7
7.1
6.7
6.8
6.6
7.4
7.5
7.9
6.9
6.2
6.6
7.9
Second Quintile
32.9
31.8
30.3
28.4
27.7
25.2
25.6
26.0
24.7
24.5
24.4
27.0
26.3
24.3
23.3
26.8
Third Quintile
55.5
56.0
54.5
52.1
51.7
50.4
51.7
51.2
46.7
45.6
48.1
47.6
47.9
46.9
46.7
48.9
Fourth Quintile
72.0
70.5
69.8
69.2
68.5
66.8
67.2
66.1
63.2
64.4
64.6
63.6
65.1
64.9
63.6
66.0
81-95%
73.1
73.3
73.9
72.1
71.9
71.8
72.3
71.2
69.7
69.7
70.0
70.8
71.9
69.9
68.8
72.5
Top 5%
62.1
63.9
64.1
63.6
62.8
63.8
65.4
62.5
60.3
62.1
60.0
60.4
61.7
64.3
60.9
64.9
Women
Lowest Quintile
5.3
5.2
4.7
4.4
4.5
3.8
3.9
5.3
4.4
4.3
5.3
5.3
5.7
5.9
5.4
6.3
Second Quintile
18.0
16.0
16.8
15.7
14.9
15.3
16.0
14.9
14.9
16.6
17.0
17.0
18.3
18.2
18.5
19.3
Third Quintile
33.0
34.6
34.7
35.5
35.2
35.8
34.7
34.8
34.7
33.7
36.8
36.9
38.0
38.4
38.5
39.7
Fourth Quintile
53.6
56.0
53.7
55.8
57.4
55.3
55.6
55.8
51.9
54.0
56.4
56.6
57.8
59.6
58.3
60.5
81-95%
68.0
69.3
70.0
70.5
69.3
68.5
70.3
70.2
66.4
66.4
68.5
68.6
69.6
70.2
68.9
71.0
Top 5%
71.9
69.3
70.0
69.5
69.3
66.8
67.6
69.9
65.7
64.3
64.8
65.7
68.1
70.8
66.1
68.1

---

CRS-43
Change in
Change in
Change in
Change in
Percent,
Percent,
Percent,
Percent,
Percentile
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
1979-1987
1987-2000
2000-2007
1979-2007
All Workers
Lowest Quintile
7.8
7.9
7.9
9.4
9.7
10.4
9.7
9.2
9.1
9.1
9.1
9.7
9.8
-1.8
4.9
-0.6
2.4
Second Quintile
22.9
24.2
25.7
27.2
27.0
28.8
27.5
26.7
26.0
26.9
25.6
25.6
26.2
-3.9
8.3
-2.6
1.7
Third Quintile
44.9
45.4
46.0
49.0
49.2
50.4
47.7
46.7
47.3
46.5
45.9
43.8
47.5
-4.8
9.0
-3.0
1.3
Fourth Quintile
62.1
62.8
63.2
64.3
64.9
64.1
63.7
61.3
61.3
61.4
60.4
57.1
60.0
-6.2
7.0
-4.1
-3.4
81-95%
70.5
72.2
70.1
72.2
71.9
71.7
70.6
68.9
70.2
68.5
66.3
64.6
67.0
-4.8
2.9
-4.7
-6.7
Top 5%
66.9
65.5
65.8
67.6
68.7
67.7
64.4
63.3
64.6
65.9
64.2
60.9
62.9
-3.4
6.2
-4.8
-2.1
Men
Lowest Quintile
8.4
8.7
8.7
10.0
10.0
10.8
9.8
9.3
8.9
9.3
9.3
9.5
9.3
-2.4
4.2
-1.5
0.3
Second Quintile
25.5
27.0
27.6
30.3
30.7
31.0
30.2
28.1
28.2
27.7
27.3
26.2
28.1
-8.2
6.3
-2.9
-4.8
Third Quintile
49.5
48.3
50.1
53.6
53.6
52.1
51.7
49.7
47.7
47.5
46.7
44.7
47.2
-8.8
5.4
-4.9
-8.3
Fourth Quintile
64.2
66.6
65.2
66.6
66.9
68.0
65.2
63.0
64.1
63.4
60.6
58.2
60.2
-8.8
4.9
-7.8
-11.8
81-95%
71.0
71.4
71.4
72.5
71.6
71.7
69.9
67.6
69.7
67.8
67.0
64.1
67.0
-3.4
2.1
-4.7
-6.0
Top 5%
66.1
65.1
65.1
66.8
68.8
68.0
65.4
63.0
62.7
66.7
61.7
59.4
60.7
-1.8
7.7
-7.2
-1.4
Women
Lowest Quintile
6.5
6.8
6.9
8.2
9.2
9.5
8.3
8.1
8.6
8.4
7.8
8.8
8.7
-0.9
5.2
-0.9
3.4
Second Quintile
18.6
20.5
21.1
23.0
22.0
24.8
24.0
24.6
23.2
23.5
24.0
22.1
24.8
-3.1
9.9
0.0
6.8
Third Quintile
40.5
41.5
42.0
44.4
45.0
48.2
44.7
44.0
44.6
45.2
43.1
42.8
44.5
1.7
13.5
-3.7
11.5
Fourth Quintile
59.4
60.1
61.4
62.3
62.3
62.2
61.5
59.9
60.9
61.5
60.3
58.5
62.5
-1.7
10.2
0.4
8.9
81-95%
71.4
72.4
71.0
72.3
73.1
71.3
71.9
69.3
71.2
69.3
68.4
66.7
68.7
-1.6
5.0
-2.6
0.7
Top 5%
68.4
67.9
65.5
68.1
68.4
68.4
64.5
68.2
68.1
68.7
68.0
63.7
65.6
-6.2
2.8
-2.8
-6.2
Source: Calculated by CRS from the Annual Social and Economic (ASEC) supplement to the Current Population Survey (CPS).
Note: Estimates are for persons age 16 and over.

---

CRS-44
Table 6. Employer- or Union-Provided Pension Coverage, Full-Time, Year-Round Workers, by Quintile, 1979-2007
(percent)
Percentile
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
All Full-Time, Year-Round Workers
Lowest Quintile
29.5
29.1
28.1
28.3
26.3
25.5
25.3
24.0
22.7
23.2
24.0
23.6
23.3
23.6
22.2
23.7
Second Quintile
53.1
53.4
53.2
51.6
51.3
49.3
48.3
48.6
45.4
44.5
46.0
45.7
46.4
46.9
45.0
48.4
Third Quintile
64.0
65.6
65.4
64.7
64.1
62.6
63.8
62.3
58.1
57.4
59.2
59.8
62.4
62.2
60.4
61.2
Fourth Quintile
74.7
73.8
73.1
72.4
72.9
70.8
71.3
70.6
68.2
68.7
69.3
69.2
70.7
70.4
69.7
71.7
81-95%
76.2
75.4
76.1
75.4
73.8
75.4
75.2
74.0
71.9
72.8
72.6
74.2
75.2
75.3
73.3
75.8
Top 5%
65.9
67.6
68.6
67.5
65.4
65.8
69.4
66.3
64.4
65.1
62.1
65.9
66.0
69.9
65.7
69.8
Men
Lowest Quintile
28.7
29.6
28.3
27.3
25.8
24.0
23.1
22.4
22.6
22.3
21.7
23.0
22.5
21.5
19.6
22.4
Second Quintile
56.2
54.5
55.1
52.8
52.3
50.9
50.5
49.7
45.6
43.9
46.2
45.5
47.8
46.0
43.7
46.1
Third Quintile
69.5
69.2
68.1
67.1
67.5
64.1
65.2
65.5
60.6
59.2
60.0
60.2
62.2
63.1
61.1
62.8
Fourth Quintile
75.7
75.6
75.2
73.9
73.1
73.8
73.6
71.5
69.7
70.7
71.7
71.9
73.1
73.1
70.9
72.0
81-95%
74.8
75.3
76.1
74.6
73.1
72.9
75.2
72.8
71.8
73.2
70.5
73.0
73.7
71.7
71.6
75.8
Top 5%
63.3
66.3
64.8
66.5
64.2
65.7
68.0
64.3
61.2
65.0
63.6
64.1
66.8
69.3
64.4
68.7
Women
Lowest Quintile
27.3
25.9
25.3
24.9
23.7
23.8
24.1
22.4
20.0
21.9
22.8
22.3
22.6
22.7
22.5
22.4
Second Quintile
45.0
48.0
47.7
49.3
48.1
46.8
45.6
45.2
43.6
41.9
45.0
44.0
44.8
48.2
46.0
48.8
Third Quintile
60.7
61.5
61.1
62.2
62.1
61.1
60.3
60.2
56.3
57.5
59.1
59.2
60.0
61.6
60.9
62.3
Fourth Quintile
70.9
72.3
72.4
72.0
71.5
69.4
71.5
70.4
65.5
66.8
68.6
68.8
71.0
70.2
70.2
72.9
81-95%
77.3
77.1
77.2
77.7
76.6
75.9
77.2
76.2
74.9
74.6
74.0
75.6
75.8
77.7
74.8
76.3
Top 5%
78.6
72.2
75.4
73.6
72.2
75.3
70.6
74.5
71.1
66.4
70.5
71.1
72.0
77.5
73.6
74.9

---

CRS-45
Change in Change in Change in Change in
Percent,
Percent,
Percent,
Percent,
Percentile
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
1979-1987 1987-2000 2000-2007 1979-2007
All Full-Time, Year-Round Workers
Lowest Quintile
23.3
24.4
24.9
25.8
25.8
25.3
24.7
24.0
22.4
22.7
20.6
21.4
22.2
-6.8
2.6
-3.1
-7.3
Second Quintile
45.8
47.5
46.8
48.3
48.1
48.7
46.3
44.3
46.3
44.6
43.5
40.2
44.5
-7.7
3.3
-4.3
-8.7
Third Quintile
60.2
60.7
61.7
63.7
63.6
61.3
60.4
59.1
58.1
58.2
58.0
55.1
57.6
-6.0
3.3
-3.7
-6.4
Fourth Quintile
69.9
71.6
70.4
70.9
71.4
71.6
70.1
67.9
68.9
68.3
66.0
63.2
66.8
-6.5
3.4
-4.8
-7.9
81-95%
74.3
74.9
73.6
75.2
75.7
74.8
73.4
71.7
73.7
72.6
70.6
67.2
69.9
-4.2
2.9
-5.0
-6.3
Top 5%
70.9
70.8
70.9
71.2
74.0
71.9
68.8
69.1
69.2
70.0
67.4
65.5
67.3
-1.5
7.5
-4.6
1.4
Men
Lowest Quintile
21.9
22.5
23.2
23.9
24.2
22.3
22.5
20.8
19.6
19.4
18.8
18.7
20.0
-6.1
-0.4
-2.3
-8.7
Second Quintile
45.2
45.4
45.4
47.9
48.3
47.8
44.6
43.1
45.0
41.7
42.2
38.3
41.9
-10.6
2.2
-5.9
-14.3
Third Quintile
60.7
61.5
62.7
62.5
63.9
61.8
61.5
59.9
57.3
58.5
56.0
53.4
56.1
-8.9
1.2
-5.7
-13.4
Fourth Quintile
69.6
72.6
69.3
72.6
72.1
72.4
70.7
68.7
69.2
67.9
65.2
62.1
65.6
-6.0
2.8
-6.8
-10.0
81-95%
74.3
74.6
74.5
74.2
75.5
75.9
72.5
70.1
72.6
70.9
69.5
66.9
70.0
-3.0
4.0
-5.9
-4.8
Top 5%
69.5
68.9
70.9
70.8
72.8
69.8
68.7
65.8
67.1
69.8
65.0
62.8
64.9
-2.1
8.6
-4.9
1.6
Women
Lowest Quintile
22.7
24.4
24.5
26.5
24.2
25.1
24.6
25.2
23.9
24.6
22.6
23.3
23.9
-7.3
5.1
-1.2
-3.3
Second Quintile
46.5
48.3
47.2
48.6
48.4
50.9
46.5
45.5
45.9
47.3
44.5
42.4
44.9
-1.4
7.3
-5.9
0.0
Third Quintile
57.9
61.0
62.2
63.7
63.9
62.0
61.1
59.9
61.5
60.9
59.8
57.0
60.3
-4.4
5.7
-1.6
-0.4
Fourth Quintile
71.6
72.3
71.9
71.0
70.9
70.3
70.0
67.8
70.1
70.3
68.2
65.6
69.0
-5.3
4.8
-1.3
-1.9
81-95%
78.8
77.5
75.4
78.4
79.5
76.6
76.7
74.0
75.4
72.8
73.3
70.8
73.6
-2.4
1.7
-3.0
-3.7
Top 5%
71.9
72.7
71.9
73.2
73.0
75.6
70.9
76.2
74.0
74.8
73.5
68.2
71.5
-7.5
4.5
-4.1
-7.1
Source: Calculated by CRS from the Annual Social and Economic (ASEC) supplement to the Current Population Survey (CPS).
Note: Estimates are for persons age 16 and over.

---

CRS-46
Table 7. Gini Coefficients for All Workers and for Full-Time,
Year-Round Workers, 1979-2007
Year
Total
Men
Women
A. All Workers
1979
0.41764
0.38118
0.37645
1980
0.41500
0.37902
0.37979
1981
0.41832
0.38657
0.37936
1982
0.42416
0.39653
0.38709
1983
0.42845
0.40207
0.39513
1984
0.42782
0.39854
0.40189
1985
0.43445
0.40870
0.40643
1986
0.43916
0.41606
0.40608
1987
0.43700
0.41447
0.40982
1988
0.43918
0.41856
0.41105
1989
0.44372
0.42770
0.41192
1990
0.43694
0.42042
0.41238
1991
0.43603
0.42096
0.41239
1992
0.43653
0.42484
0.41204
1993
0.46279
0.45505
0.43331
1994
0.46807
0.45950
0.43855
1995
0.47431
0.46835
0.44358
1996
0.46406
0.45790
0.43515
1997
0.46617
0.46026
0.43605
1998
0.46628
0.45756
0.44347
1999
0.45288
0.44374
0.42834
2000
0.46679
0.46885
0.42539
2001
0.47068
0.46564
0.44669
2002
0.47152
0.47456
0.43294
2003
0.46831
0.46403
0.44594
2004
0.46678
0.46611
0.43695
2005
0.47500
0.47887
0.43933
2006
0.46989
0.46681
0.44776
2007
0.46280
0.46190
0.43873
B. Full-Time, Year-Round Workers
1979
0.33096
0.31298
0.26142
1980
0.32541
0.30840
0.26152
1981
0.32860
0.31375
0.26255
1982
0.33434
0.32216
0.27392
1983
0.33526
0.32512
0.27678
1984
0.33670
0.32520
0.28272
1985
0.34365
0.33669
0.28583
1986
0.35061
0.34394
0.29563
1987
0.34967
0.34366
0.29781
1988
0.35144
0.34608
0.30345
1989
0.35983
0.35768
0.30737
1990
0.35580
0.35714
0.30509
1991
0.35169
0.35032
0.30841
1992
0.35594
0.35838
0.30881
1993
0.38496
0.39129
0.33265
1994
0.39029
0.39629
0.33975
1995
0.38731
0.39594
0.33095
1996
0.39246
0.40016
0.34233
1997
0.39093
0.39941
0.33888
1998
0.38999
0.39703
0.34263
1999
0.38020
0.38363
0.33654

---

CRS-47
Year
Total
Men
Women
2000
0.40197
0.41458
0.33904
2001
0.40573
0.41449
0.35912
2002
0.40194
0.41410
0.34917
2003
0.39841
0.40673
0.35634
2004
0.40204
0.41409
0.35386
2005
0.40645
0.42065
0.35455
2006
0.40868
0.41705
0.37138
2007
0.39260
0.40162
0.35423
Source: Calculated by CRS from the Annual Social and Economic (ASEC) supplement to the Current
Population Survey (CPS).
Note: Estimates are for persons age 16 and over. The Gini coefficient is a measure of earnings
equality that ranges from 0 to 1. A larger coefficient indicates a greater degree of inequality.

---

CRS-48
Table 8. Share of Total Weekly Earnings by Quintile, All Workers, 1979-2007
(percent)
Percentile
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
All Workers
Lowest Quintile
4.1
4.1
4.0
3.9
3.7
3.8
3.7
3.7
3.7
3.7
3.7
3.9
3.9
3.8
3.6
3.7
Second Quintile
10.2
10.2
10.1
9.9
9.8
9.7
9.6
9.5
9.5
9.5
9.5
9.6
9.6
9.6
9.1
9.0
Third Quintile
16.0
16.0
16.0
15.9
15.9
15.8
15.6
15.5
15.6
15.6
15.4
15.5
15.5
15.6
14.8
14.5
Fourth Quintile
24.0
24.2
24.2
24.1
24.1
24.3
23.9
23.8
23.7
23.7
23.3
23.4
23.6
23.5
22.5
22.2
81-95% 27.3
27.4
27.6
27.8
27.9
28.1
27.7
27.6
27.7
27.4
27.2
27.3
27.5
27.5
26.7
26.6
Top 5%
18.5
18.1
18.1
18.4
18.6
18.3
19.4
19.9
19.7
20.1
20.9
20.3
19.9
20.0
23.3
24.1
Men
Lowest Quintile
4.1
4.1
4.0
3.9
3.7
4.1
4.1
4.1
4.1
4.1
4.1
4.3
4.2
4.1
3.8
3.9
Second Quintile
10.2
10.2
10.1
9.9
9.8
10.6
10.4
10.2
10.3
10.2
10.1
10.2
10.1
10.0
9.4
9.3
Third Quintile
16.0
16.0
16.0
15.9
15.9
17.0
16.6
16.4
16.4
16.3
15.9
15.9
16.0
15.9
15.0
14.7
Fourth Quintile
24.0
24.2
24.2
24.1
24.1
24.5
24.0
23.7
23.8
23.5
23.2
23.2
23.5
23.3
22.2
21.9
81-95% 27.3
27.4
27.6
27.8
27.9
26.9
26.5
26.2
26.5
26.2
26.1
26.4
26.7
26.8
26.0
25.9
Top 5%
18.5
18.1
18.1
18.4
18.6
16.9
18.3
19.3
18.9
19.7
20.8
20.0
19.6
19.9
23.6
24.4
Women
Lowest Quintile
4.6
4.5
4.5
4.3
4.2
4.1
4.1
4.1
4.1
4.0
4.1
4.1
4.1
4.1
3.8
4.0
Second Quintile
11.5
11.4
11.2
10.9
10.7
10.5
10.3
10.3
10.2
10.2
10.1
10.2
10.2
10.2
9.7
9.6
Third Quintile
17.4
17.3
17.4
17.2
17.0
16.8
16.7
16.5
16.5
16.5
16.3
16.3
16.2
16.2
15.7
15.4
Fourth Quintile
24.4
24.3
24.5
24.7
24.6
24.5
24.4
24.6
24.3
24.5
24.3
24.3
24.3
24.4
23.6
23.3
81-95% 26.3
26.5
26.8
27.1
27.3
27.3
27.3
27.6
27.5
27.7
27.7
27.4
27.7
27.6
27.3
27.1
Top 5%
15.8
16.0
15.6
15.7
16.2
16.9
17.2
16.9
17.4
17.2
17.4
17.7
17.6
17.4
19.8
20.7

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CRS-49
Change in Change in Change in Change in Change in Change in
Percent,
Percent,
Percent,
Percent,
Percent,
Percent,
Percentile
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1980-1989 1989-1992 1993-1995 1995-1999 1999-2005 2005-2007
All Workers
Lowest Quintile
3.6
3.8
3.7
3.8
3.9
3.9
3.8
3.8
3.8
3.8
3.8
3.9
4.0
-0.4
0.1
0.0
0.3
-0.1
0.2
Second Quintile
8.9
9.1
9.1
9.1
9.3
9.2
9.1
9.1
9.1
9.2
9.0
9.1
9.3
-0.7
0.1
-0.2
0.4
-0.3
0.2
Third Quintile
14.4
14.6
14.6
14.6
14.9
14.4
14.3
14.3
14.4
14.4
14.1
14.2
14.5
-0.7
0.2
-0.4
0.5
-0.8
0.3
Fourth Quintile
21.9
22.1
21.9
21.8
22.4
21.6
21.4
21.4
21.6
21.7
21.3
21.5
21.6
-0.8
0.2
-0.6
0.5
-1.2
0.3
81-95% 26.2
26.6
26.4
26.3
27.3
26.2
26.3
26.3
26.7
26.7
26.3
26.4
26.4
-0.1
0.2
-0.5
1.1
-1.0
0.1
Top 5%
25.0
23.8
24.3
24.4
22.1
24.7
25.1
25.1
24.4
24.2
25.5
24.9
24.3
2.7
-0.8
1.7
-2.8
3.3
-1.2
Men
Lowest Quintile
3.8
3.9
4.0
4.0
4.1
4.0
4.0
4.0
4.0
4.0
3.9
4.1
4.2
0.0
0.0
0.0
0.2
-0.1
0.3
Second Quintile
9.2
9.4
9.4
9.5
9.7
9.2
9.3
9.1
9.3
9.3
9.0
9.2
9.3
-0.1
-0.1
-0.3
0.5
-0.7
0.3
Third Quintile
14.6
14.8
14.7
14.8
15.1
14.2
14.3
14.1
14.4
14.3
13.9
14.2
14.3
-0.2
0.1
-0.4
0.6
-1.2
0.4
Fourth Quintile
21.6
21.9
21.5
21.6
22.3
21.1
21.1
20.9
21.4
21.3
20.8
21.1
21.3
-1.0
0.2
-0.6
0.7
-1.5
0.5
81-95% 25.3
25.7
25.7
25.9
26.9
25.4
25.8
25.8
26.3
26.2
25.8
26.1
26.0
-1.3
0.7
-0.7
1.6
-1.1
0.2
Top 5%
25.5
24.3
24.7
24.3
22.0
26.0
25.4
26.2
24.6
25.0
26.6
25.3
24.8
2.6
-0.9
1.9
-3.5
4.6
-1.8
Women
Lowest Quintile
3.9
4.1
4.0
4.1
4.2
4.2
4.1
4.1
4.0
4.0
4.1
4.1
4.1
-0.4
0.0
0.0
0.3
-0.1
0.0
Second Quintile
9.6
9.7
9.7
9.6
9.9
10.0
9.6
9.9
9.6
9.8
9.7
9.5
9.8
-1.2
0.0
-0.2
0.3
-0.1
0.0
Third Quintile
15.3
15.5
15.5
15.2
15.6
15.8
15.1
15.5
15.2
15.5
15.3
15.0
15.3
-1.0
-0.1
-0.4
0.3
-0.3
0.0
Fourth Quintile
23.0
23.1
23.1
22.6
23.2
23.1
22.3
22.9
22.4
22.8
22.6
22.4
22.6
0.0
0.1
-0.6
0.2
-0.6
0.0
81-95% 26.9
27.0
26.9
26.4
27.3
27.0
26.2
26.7
26.5
27.1
26.9
26.6
26.5
1.2
0.0
-0.4
0.4
-0.4
-0.3
Top 5%
21.4
20.7
20.8
22.1
19.8
19.9
22.7
20.9
22.2
20.8
21.4
22.5
21.7
1.5
0.0
1.5
-1.5
1.5
0.3
Source: Calculated by CRS from the Annual Social and Economic (ASEC) supplement to the Current Population Survey (CPS).
Note: Estimates are for persons age 16 and over.

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CRS-50
Table 9. Share of Total Weekly Earnings by Quintile, Full-Time, Year-Round Workers, 1979-2007
(percent)
Percentile
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
All Full-Time, Year-Round Workers
Lowest Quintile
7.3
7.4
7.3
7.2
7.0
6.9
6.9
6.7
6.8
6.7
6.6
6.7
6.7
6.7
6.3
6.2
Second Quintile
12.4
12.4
12.3
12.2
12.3
12.2
12.0
11.9
11.9
11.9
11.8
11.8
11.9
11.8
11.2
11.0
Third Quintile
16.9
17.0
17.1
16.9
16.9
17.0
16.8
16.7
16.6
16.6
16.3
16.4
16.5
16.5
15.7
15.5
Fourth Quintile
23.0
23.2
23.2
23.0
23.2
23.3
23.0
22.9
22.9
22.8
22.5
22.6
22.8
22.6
21.7
21.6
81-95% 24.5
24.5
24.7
24.9
25.0
25.2
24.9
24.9
24.9
24.8
24.7
24.9
25.0
24.9
24.3
24.5
Top 5%
15.9
15.4
15.5
15.7
15.6
15.4
16.4
16.9
16.9
17.1
18.1
17.6
17.0
17.5
20.8
21.1
Men
Lowest Quintile
7.5
7.6
7.4
7.2
7.0
6.8
6.8
6.6
6.7
6.7
6.6
6.6
6.6
6.5
6.1
6.0
Second Quintile
13.1
13.2
13.0
12.8
12.8
12.7
12.4
12.3
12.2
12.2
11.9
11.9
12.0
11.8
11.1
10.9
Third Quintile
17.6
17.8
17.7
17.5
17.6
17.6
17.2
17.1
17.1
17.0
16.5
16.6
16.7
16.6
15.6
15.5
Fourth Quintile
22.7
22.8
23.1
23.0
23.1
23.3
23.0
22.8
22.8
22.6
22.3
22.5
22.7
22.5
21.5
21.5
81-95% 23.7
23.7
23.9
24.5
24.6
24.7
24.4
24.4
24.4
24.5
24.5
24.7
24.9
24.9
24.1
24.4
Top 5%
15.3
14.9
14.9
15.1
15.1
14.8
16.2
16.8
16.8
17.0
18.2
17.8
17.0
17.7
21.5
21.8
Women
Lowest Quintile
9.2
9.1
9.0
8.7
8.5
8.3
8.3
8.0
7.9
7.8
7.7
7.8
7.7
7.6
7.2
7.1
Second Quintile
14.4
14.5
14.3
14.0
14.0
13.7
13.6
13.3
13.4
13.2
13.1
13.1
13.0
13.0
12.6
12.3
Third Quintile
18.2
18.1
18.2
18.0
18.0
18.0
17.9
17.8
17.7
17.6
17.5
17.6
17.5
17.7
17.0
16.8
Fourth Quintile
22.9
23.0
23.2
23.2
23.3
23.4
23.5
23.4
23.2
23.2
23.2
23.3
23.2
23.2
22.7
22.6
81-95% 23.0
23.1
23.3
23.3
23.5
23.7
23.8
23.9
23.9
24.1
24.2
24.1
24.2
24.3
24.0
24.2
Top 5%
12.4
12.3
12.0
12.7
12.7
12.9
12.9
13.5
13.8
14.0
14.2
14.1
14.4
14.2
16.5
17.0

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CRS-51
Change in Change in Change in Change in Change in Change in
Percent,
Percent,
Percent,
Percent,
Percent,
Percent,
Percentile
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1980-1989 1989-1992 1993-1995 1995-1999 1999-2005 2005-2007
All Full-Time, Year-Round Workers
Lowest Quintile
6.3
6.3
6.3
6.3
6.3
6.1
6.1
6.2
6.2
6.1
6.1
6.0
6.3
-0.8
0.0
0.0
0.0
-0.2
0.2
Second Quintile
11.1
11.1
11.1
11.1
11.2
10.8
10.7
10.8
10.9
10.8
10.6
10.6
10.9
-0.7
0.0
-0.1
0.1
-0.6
0.3
Third Quintile
15.6
15.3
15.4
15.5
15.7
15.1
14.9
15.0
15.1
15.0
14.9
14.9
15.3
-0.8
0.3
-0.1
0.2
-0.8
0.4
Fourth Quintile
21.8
21.4
21.4
21.5
22.0
21.2
20.9
21.1
21.3
21.2
21.1
21.1
21.5
-0.7
0.1
0.1
0.2
-0.9
0.4
81-95%
24.6
24.4
24.4
24.6
25.5
24.6
24.6
25.0
25.2
25.0
25.1
25.1
25.3
0.2
0.2
0.3
0.9
-0.4
0.2
Top 5%
20.7
21.5
21.4
21.1
19.3
22.2
22.7
22.0
21.4
21.8
22.1
22.4
20.7
2.6
-0.6
-0.2
-1.4
2.9
-1.4
Men
Lowest Quintile
6.1
6.0
6.1
6.1
6.2
5.9
5.9
5.9
6.0
5.8
5.8
5.8
6.1
-1.0
-0.1
0.0
0.1
-0.4
0.3
Second Quintile
11.0
10.9
11.0
11.0
11.2
10.5
10.5
10.5
10.6
10.5
10.3
10.3
10.6
-1.3
-0.1
-0.1
0.2
-0.9
0.3
Third Quintile
15.5
15.3
15.3
15.4
15.7
14.8
14.7
14.8
15.0
14.9
14.7
14.8
15.2
-1.2
0.1
-0.1
0.2
-1.0
0.5
Fourth Quintile
21.5
21.2
21.1
21.3
22.0
21.0
20.8
21.0
21.3
21.0
20.9
20.9
21.5
-0.5
0.2
0.0
0.5
-1.1
0.6
81-95%
24.3
24.2
24.3
24.7
25.4
24.4
24.5
25.0
25.3
25.1
25.0
25.2
25.4
0.7
0.4
0.2
1.1
-0.3
0.3
Top 5%
21.7
22.3
22.2
21.6
19.6
23.5
23.5
22.9
21.8
22.7
23.4
22.9
21.3
3.3
-0.5
0.1
-2.1
3.8
-2.1
Women
Lowest Quintile
7.2
7.3
7.3
7.2
7.1
7.1
7.0
7.1
6.9
6.9
7.0
6.8
7.1
-1.4
-0.1
0.1
-0.1
-0.2
0.1
Second Quintile
12.5
12.3
12.3
12.2
12.3
12.4
11.9
12.1
12.0
12.0
11.8
11.5
11.9
-1.4
-0.1
-0.1
-0.2
-0.5
0.1
Third Quintile
17.0
16.5
16.7
16.6
16.9
16.7
16.1
16.3
16.2
16.3
16.3
15.8
16.2
-0.6
0.1
-0.1
-0.1
-0.6
0.0
Fourth Quintile
22.8
22.2
22.4
22.2
22.7
22.5
21.8
22.1
22.0
22.1
22.2
21.7
22.0
0.2
0.0
0.1
-0.2
-0.4
-0.2
81-95%
24.6
24.2
24.3
24.3
24.8
24.6
24.2
24.4
24.4
24.7
24.9
24.5
24.6
1.2
0.1
0.6
0.2
0.1
-0.3
Top 5%
15.9
17.5
17.1
17.4
16.2
16.7
19.0
17.9
18.4
17.9
17.8
19.7
18.2
1.9
-0.1
-0.6
0.3
1.6
0.4
Source: Calculated by CRS from the Annual Social and Economic (ASEC) supplement to the Current Population Survey (CPS).
Note: Estimates are for persons age 16 and over.

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