.

The Trend in Family Income from 1979 to 2010
Gerald Mayer
Analyst in Labor Policy
February 8, 2012
Congressional Research Service
7-5700
www.crs.gov
R42348
CRS Report for Congress
Pr
epared for Members and Committees of Congress
c11173008


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The Trend in Family Income from 1979 to 2010

Summary
Policymakers often debate how government programs and legislation benefit or harm families at
different income levels. Families can be defined in different ways. The analysis here uses two
categories of families. The first category combines married couples, single parents, and
individuals into one group. The second category consists only of families headed by married
couples. Family income can also be defined differently. The analysis here is based on a consistent
data series from the Annual and Social Economic (ASEC) supplement to the Current Population
Survey (CPS). The analysis uses two definitions of income: income from all sources, and
earnings from work only. Income does not include employer contributions for health insurance or
other benefits, in-kind transfers (e.g., for food, housing, healthcare, or energy assistance), or
capital gains.
In recent decades, family income inequality has increased. In recent years, the level of family
income has changed because of slow or declining real hourly earnings, a decline in annual hours
worked, and the 2007-2009 recession. It may be difficult to separate the effects of longer-term
changes in income inequality and hours worked from the effects of the recent recession.
From 1979 to 2010, average real income (i.e., actual income adjusted for inflation to constant
2010 dollars) increased for all families and for all married couples. However, the average income
of families at the lowest quintile (i.e., the lowest fifth of families by income) fell by $3,350
(22.3%), while the average income of the top 5% of families increased by at least $55,280
(25.5%). The average income of married couples at the lowest quintile fell by $1,550 (5.9%),
while the average income of the top 5% of married couples increased by at least $85,590 (34.4%).
Because of differences in the growth of real family income by quintile, income inequality
increased from 1979 to 2010. Most of the increase took place from 1979 to 1989. Inequality also
increased during the recession years of 2007-2009.
Real hourly earnings were higher in 2010 than in 1979. But total hours worked by all families
have been falling since about 1989 and for married couples since about 2000.
For families at all quintiles, average total earnings fell during the economic expansion between
2000 to 2007 and again during and after the 2007-2009 recession. In 2010, the average earnings
of families at the three lowest quintiles were lower than in 1979. The loss of earnings from 2000
to 2010 was greater than the growth in earnings in previous years. The lower earnings were due to
slow or declining wage growth and a reduction in hours worked.
The average total earnings of married couples at the lowest quintile were lower in 2010 than in
1979. The average earnings of couples at the next-to-lowest and middle quintiles were higher in
2010 than in 1979, but the gains in earnings from the expansions of the 1980s and 1990s were
partially offset by a loss of earnings from 2000 to 2010. The rise in earnings from 1979 to 2010
for couples at the next-to-lowest and middle quintiles was due, in part, to higher real hourly
earnings. But, most of the growth in earnings was due to an increase in hours worked. The
average earnings of married couples at the top two quintiles were also higher in 2010 than in
1979. But, unlike couples at the next-to-lowest and middle quintiles, who benefited from an
increase in hours worked, most of the increase in earnings for couples at the top two quintiles was
due to higher earnings per hour worked. The total number of hours worked by these couples (over
4,000 annually) suggests that they are two-earner couples.
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The Trend in Family Income from 1979 to 2010

Contents
Family Income: Why it Matters and Policies to Improve It ............................................................ 1
Definitions Used in the Report ........................................................................................................ 2
The Trend in Family Income ........................................................................................................... 4
Longer-Term Trends .................................................................................................................. 5
The Distribution of Family Income..................................................................................... 5
Annual Hours Worked......................................................................................................... 6
The Level of Family Income ..................................................................................................... 7
All Families......................................................................................................................... 7
Married Couples.................................................................................................................. 9
Family Earnings Per Hour and Total Hours Worked ............................................................... 11
Earnings Per Hour Worked................................................................................................ 11
Hours Worked.................................................................................................................... 13
The Separate Effects of Hourly Earnings and Hours Worked on Total Family
Earnings................................................................................................................................ 16
All Families....................................................................................................................... 16
Married Couples................................................................................................................ 18
Other Reasons For Changes in Family Income ............................................................................. 18
Conclusion ..................................................................................................................................... 20

Figures
Figure 1. Annual Unemployment Rates, 1979 to 2010.................................................................... 4
Figure 2. The Distribution of Family Income, as Measured by the Gini Coefficient, 1979
to 2010 .......................................................................................................................................... 5
Figure 3. Average Annual Hours Worked, All Families and Married Couples,
1979 to 2010 ................................................................................................................................. 7
Figure 4. Average Real Income, All Families and Married Couples, 1979 to 2010 ........................ 8
Figure 5. Changes in Average Real Family Income, by Quintile,
All Families, 1979 to 2010 ........................................................................................................... 8
Figure 6. Changes in Average Real Family Income, by Quintile,
Married Couples, 1979 to 2010 .................................................................................................. 10
Figure 7. Changes in Average Real Hourly Earnings, by Quintile, All Families, 1979 to
2010 ............................................................................................................................................ 11
Figure 8. Changes in Average Real Hourly Earnings, by Quintile,
Married Couples, 1979 to 2010 .................................................................................................. 13
Figure 9. Changes in Total Hours Worked Annually, by Quintile,
All Families, 1979 to 2010 ......................................................................................................... 14
Figure 10. Changes in Total Hours Worked Annually, by Quintile,
Married Couples, 1979 to 2010 .................................................................................................. 15
Figure A-1. Average Real Family Income and Average Real Income of the
Top 5% of Families, 1979 to 2010.............................................................................................. 23
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The Trend in Family Income from 1979 to 2010

Figure A-2. Family Earnings as a Share of Family Income,
by Quintile, 1979, 2007, and 2010 ............................................................................................. 24

Tables
Table 1. Family Type and Average Family Size, 1979 and 2010..................................................... 6
Table 2. Estimates of the Relative Effects of Changes in Real Hourly Earnings and Total
Hours Worked on Family Earnings, by Quintile, 1979 to 2010 ................................................. 17
Table 3. Changes in the Age and Education of the Labor Force, 1979 to 2010............................. 19
Table A-1. Average Hours Worked by All Family Members, by Quintile, 1979 to 2010 .............. 25
Table A-2. Illustration of the Decomposition of Average Annual Earnings Due to Changes
in Real Hourly Earnings and Annual Hours Worked.................................................................. 26
Table A-3. Illustration of Equivalence Scale ................................................................................. 27
Table A-4. Average Real Income: All Families and Married Couples, 1979 to 2010.................... 28
Table A-5. Gini Coefficient: All Families and Married Couples, 1979 to 2010 ............................ 31
Table A-6. Average Real Family Earnings Per Family Hour Worked: All Families and
Married Couples, 1979-2010...................................................................................................... 32

Appendixes
Appendix. Data and Methodology................................................................................................. 21

Contacts
Author Contact Information........................................................................................................... 35

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The Trend in Family Income from 1979 to 2010

olicymakers often debate how government programs and legislation benefit or harm
families at different income levels. For example, some argue that the middle class has been
P squeezed by declining or stagnant incomes and rising costs for food, energy, healthcare,
and other goods and services. Others maintain that, because of improvements in productivity and
advances in technology, real incomes and the standard of living have improved for most, if not
all, families. Also, because of economic mobility, a middle income family may become an upper
income or lower income family.
This report analyzes the trends in the level and distribution of family income from 1979 to 2010.
The beginning year of 1979 was chosen because the U.S. economy was at the peak of an
economic expansion. Other peaks occurred in 1989, 2000, and 2007. The most recent data for
family income are for 2010.
A recession officially began in the United States in December 2007 and ended in June 2009.1 In
addition to a loss of jobs, a recession typically affects both hourly earnings and hours worked.
Therefore, this report examines the total number of hours families work outside the home and
how much they earn per hour worked. The report separates the relative effects on family earnings
of changes in hourly earnings and hours worked.
Finally, the report examines changes in family income, hourly earnings, and hours worked over
three economic expansions before the recent recession: 1979-1989, 1989-2000, and 2000-2007.
The report also examines the period during and after the 2007-2009 recession. Earnings
inequality has increased in recent decades and, in recent years, the total number of hours worked
by families outside of the home has fallen.2 It may be difficult to separate the effects of these
longer-term trends from the shorter-term effects of the business cycle.
Family Income: Why it Matters and Policies to
Improve It

Family income can be affected by economic, social, and demographic changes. Economic
expansions and recessions can affect employment and hours worked. Changes in the labor force
participation of men and women can affect family earnings. A younger or older population can
affect the age of the workforce and the sources of family income.
For most families, earnings from work are the largest part of family income. Real earnings may
grow with increased productivity and advances in technology. Policies to increase productivity
may include programs 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 new technology.3

1 The National Bureau of Economic Research (NBER) dates the beginning and end of recessions. National Bureau of
Economic Research, U.S. Business Cycle Expansions and Contractions, http://www.nber.org/cycles/. (Hereinafter cited
as NBER, U.S. Business Cycle Expansions and Contractions.)
2 See CRS Report RL33835, Real Earnings, Health Insurance and Pension Coverage, and the Distribution of
Earnings, 1979-2009
, by Gerald Mayer.
3 Technological changes may include improved equipment; the introduction of new goods and services; or improved
methods of production, transportation, or communication.
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The Trend in Family Income from 1979 to 2010

Real family income may also rise with improved economic efficiency, which consists of a more
efficient allocation of resources.4 Economic efficiency can be improved through policies that
provide consumers with greater access to goods and services; for example, policies that expand
the exchange of goods or reduce the costs of exchanging goods (e.g., improved infrastructure).
Economic efficiency can also be improved through a better allocation of labor and capital; for
example, policies that remove barriers to capital and labor mobility or reduce the effect of the tax
system on decisions to work, save, and invest.
Inequality may be reduced by using either direct or indirect policies. Direct policies include
income transfer programs. Indirect policies consist of programs that improve the income-
producing human capital of lower-skilled workers (e.g., education, training, or healthcare) or that
reduce the relative supply of less-skilled labor, increase the relative supply of skilled labor, or do
both. The supply of less-skilled workers can be reduced with policies that improve investment in
preschool, grade school, and high school education; better adult education; and improved access
to healthcare for lower income workers and their families. The supply of skilled workers can be
increased with policies that lower the cost of higher education or increase educational assistance
to lower income students. Immigration policies that allow more skilled workers, fewer unskilled
workers, or both, into the country can also reduce inequality. Some policies may be more cost
effective than others, however.
Direct policies to reduce income inequality include programs such as progressive taxation—
including refundable tax credits like the Earned Income Tax Credit (EITC). Direct policies also
include in-kind transfers of food, housing, healthcare, and energy assistance.
Programs to reduce inequality may involve tradeoffs, however, with policies to improve
economic efficiency. For example, progressive taxation may reduce inequality in the distribution
of aftertax income, but high marginal income tax rates may affect decisions to work, save, and
invest. Transfer payments may affect the supply of labor (i.e., decisions to work and the number
of hours worked).
Finally, macroeconomic policies may affect the level and distribution of family income. Fiscal
and monetary policies can help lower unemployment or maintain low unemployment. Low
unemployment can increase the average number of hours that individuals work and increase the
hourly earnings and total income of lower-wage workers and their families.
Definitions Used in the Report
This section describes the concepts and data used in the report. More detail is provided in
the Appendix.
Families can be defined in different ways. This report analyzes the incomes of two categories of
families. The first category, called “all families,” includes households of all types. It is comprised
of families headed by married couples, single parents, and individuals living alone or sharing a
household with another, or other, unrelated individuals. The second category consists only of
families headed by married couples. The analysis is restricted to families headed by persons

4 Resources consist of individuals with different skills, capital goods (e.g., computers, machinery, and buildings), and
natural resources.
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The Trend in Family Income from 1979 to 2010

between the ages of 22 and 62, the age group that is most likely to be affected by changes in labor
market conditions.
The 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. Census
Bureau for the Bureau of Labor Statistics (BLS). The monthly CPS is the source of the national
unemployment rate and other labor market information. In the ASEC supplement, family income
is defined as the total money income of all family members. Money income includes earnings
from work and income from nonlabor sources (e.g., interest, dividends, unemployment
compensation, or public assistance). Earnings include wages and salaries, self-employment
income, tips, commissions, and cash bonuses. Earnings do not include employer contributions for
health insurance or to a retirement plan. Money income is before taxes or other deductions.
Money income does not include in-kind transfers (e.g., for food, housing, healthcare, or energy
assistance) or investment income such as interest, dividends, or capital gains.5 In this report,
family income is reported in constant 2010 dollars.
To analyze the trend in family income, the report uses a consistent method to calculate the
average income of higher income individuals. In the CPS, to protect the confidentiality of survey
participants, the actual incomes of higher income persons are not reported. Instead, the CPS
assigns these individuals an income amount; their incomes are topcoded. Year-to-year changes in
these amounts can affect the observed trend in average income for families with the highest
incomes. This report uses data from independent research to develop a consistent data series for
family income for the years 1979 to 2010. Nevertheless, for individuals with the highest incomes,
the data series does not include actual income. Instead, the incomes of these individuals are
averages based on their gender, race, ethnicity, and whether or not they work full-time, year-
round. These averages can affect the analysis of the distribution of family income. (See the
discussion of topcoding in the Appendix.)
Family income may change because of longer-term trends and because of shorter-term changes
over the course of the business cycle. From 1979 to 2010, there were five official recessions in
the United States.6 The recent 18-month recession was the longest since the Great Depression of
the 1930s. The unemployment rate reached 10.1% in October 2009.7 In 2010, the unemployment
rate was 9.6%. From 2007 to 2010, employment fell by an estimated 7.8 million jobs (from 137.6
million to 129.8 million).8 The deepest recession since 1979 was the 16-month recession of July
1981 to November 1982. The unemployment rate reached 10.8% in both November and

5 For an analysis of changes in the distribution of income from 1996 to 2006 among tax filers, see CRS Report R42131,
Changes in the Distribution of Income Among Tax Filers Between 1996 and 2006: The Role of Labor Income, Capital
Income, and Tax Policy
, by Thomas L. Hungerford.
6 The five recessions occurred from January 1980 to July 1980, July 1981 to November 1982, July 1990 to March
1991, March 2001 to November 2001, and December 2007 to June 2009. NBER, U.S. Business Cycle Expansions and
Contractions
.
7 The unemployment rate for October 2009 is seasonally adjusted. U.S. Department of Labor, Bureau of Labor
Statistics, Labor Force Statistics from the Current Population Survey, available at http://stats.bls.gov/cps/. (Hereinafter
cited as BLS, Labor Force Statistics from the Current Population Survey.)
8 Because the most recent data for family income are for 2010, this report analyzes the trend in family income from
1979 to 2010. Nevertheless, employment data for 2011 show that from 2010 to 2011, employment increased by 1.3
million (from 129.8 million to almost 131.2 million). Also, unemployment data for 2011 show that from 2010 to 2011,
the unemployment rate fell from 9.6% to 8.9%. U.S. Department of Labor, Bureau of Labor Statistics, Employment,
Hours, and Earnings from the Current Employment Statistics Survey
, available at http://www.bls.gov/ces; BLS, Labor
Force Statistics from the Current Population Survey
.
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The Trend in Family Income from 1979 to 2010

December 1982.9 The 1981-1982 recession was preceded by a six-month recession in 1980,
which was the shortest recession since the Great Depression.
As context, Figure 1 shows the national unemployment rate for the years 1979 to 2010. This
report analyzes changes in the level and distribution of family income over three periods that, for
the most part, extend from the peak of one economic expansion to the next. The three periods are
1979 to 1989, 1989 to 2000, and 2000 to 2007.10 The six-month recession of 1980 is included in
the period from 1979 to 1989. Figure 1 also shows the peak years between the three economic
expansions of the 1980s, 1990s, and 2000s. Finally, the report examines changes in family
income during and after the 2007-2009 recession.
Figure 1. Annual Unemployment Rates, 1979 to 2010
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
79
85
90
5
00
05
10
19
19
19
199
20
20
20
Peak of economic expansion
Unemployment rate

Source: U.S. Department of Labor, Bureau of Labor Statistics, Labor Force Statistics from the Current
Population Survey
.
Notes: Because the most recent data for family income are for 2010, this report analyzes family income
from 1979 to 2010. However, from 2010 to 2011, the unemployment rate fel from 9.6% to 8.9%.
The Trend in Family Income
This section summarizes the findings of the report. The income and earnings amounts discussed
are rounded. The Appendix shows unrounded amounts.

9 The unemployment rates for November and December 1982 are seasonally adjusted. BLS, Labor Force Statistics
from the Current Population Survey
.
10 The unemployment rate was 5.8% in 1979, 5.3% in 1989, 4.0% in 2000, and 4.6% in 2007; BLS, Labor Force
Statistics from the Current Population Survey.

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The Trend in Family Income from 1979 to 2010

Longer-Term Trends
Family income may change because of longer-term demographic, social, and economic trends.
This report takes into account two longer-term trends: changes in the distribution of income and
changes in the total number of hours worked by families outside the home.
The Distribution of Family Income
Figure 2 shows changes in the distribution of family income as measured by the Gini coefficient.
The Gini coefficient is a measure of equality that ranges from 0 to 1. If the incomes of all families
are the same, the Gini coefficient is equal to 0, representing complete equality. If one family
receives all income and all other families receive no income, the Gini coefficient is equal to 1.
Thus, a larger coefficient indicates a greater degree of inequality.
Income inequality increased from 1979 to 2010, as measured by changes in the Gini coefficient.
Most of the increase occurred from 1979 to 1989. Inequality is greater among all family types
analyzed together than among married couples analyzed separately. From 1979 to 2010,
inequality increased more among all families than among families headed by married couples.
Inequality also increased during the recession years of 2007-2009.
Figure 2. The Distribution of Family Income, as Measured by the Gini Coefficient,
1979 to 2010
0.45
0.40
0.35
0.30
79
85
90
95
00
05
10
19
19
19
19
20
20
20
Peak of economic expansion
All families
Married couples

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the
Current Population Survey (CPS).
Notes: Estimates are for families headed by persons ages 22 to 62. Changes in the Gini coefficient between
1992 to 1993 are not shown because a change in the CPS affected the observed incomes of high-income families.
See the discussion of topcoding in the Appendix.

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The Trend in Family Income from 1979 to 2010

Changes in family size and composition can affect the trend in the distribution of family income.
From 1979 to 2010, the percentage of families that were married couples fell from 62.2% to
46.1%, a decline of 16.1 percentage points. From 1979 to 2010, average family size fell from 3.6
to 3.3 persons for families headed by married couples and from 1.9 to 1.7 for other types of
families. Other types of families include single parents and individuals who may be widowed,
divorced, separated, or never married. (See Table 1.) In this report, family income is adjusted for
changes in family size and the number of adults and children in the family. (See Table A-5 and
the discussion of the Gini coefficient in the Appendix.)
Table 1. Family Type and Average Family Size, 1979 and 2010

1979
2010
Change from 1979 to 2010
Family Type
Married couple families
62.2%
46.1%
-16.1
Other family types
37.8%
53.9%
+16.1
Average Family Size
Married couple families
3.6
3.3
-0.3
Other family types
1.9
1.7
-0.2
Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the Current Population
Survey (CPS).
Note: Estimates are for families headed by persons ages 22 to 62.
Annual Hours Worked
The average number of family hours worked generally falls during a recession. The average
number of hours worked by all family types increased after the 1981-1982 recession and peaked
in 1989. But the number of hours worked has fallen since 1989. For married couples, the average
number of hours worked increased until 2000, but it fell during the years preceding the 2007-
2009 recession. (See Figure 3.)
Average hours worked can change for a number of reasons, including changes in household size
and composition, the age of the workforce, the effects of nonlabor income, the demand for labor,
changes in the labor force participation of men and women, and other reasons.
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The Trend in Family Income from 1979 to 2010

Figure 3. Average Annual Hours Worked, All Families and Married Couples,
1979 to 2010
4,000
3,500
3,000
2,500
2,000
79
85
90
5
00
05
10
19
19
19
199
20
20
20
Peak of economic expansion
All families
Married couples

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the
Current Population Survey (CPS).
Note: Estimates are for families headed by persons ages 22 to 62.
The Level of Family Income
Between 1979 and 2010, the average real income of all families peaked in 2000 and was falling
before the 2007-2009 recession. For married couples, average income peaked in 2006, but it had
changed little from 2000 to 2006. (See Figure 4.)
All Families
Figure 5 shows the changes in average real family income over each of the three business cycles
from 1979 to 2007 and from the beginning of the 2007-2009 recession to 2010. (Recall that the
period from 1979 to 1989 includes both the six-month recession in 1980 and the 16-month
recession in 1981-1982.)
In 2010, average real family income was $6,200 (9.8%) higher than in 1979. Average income
increased during the two economic expansions of the 1980s and 1990s, but it fell during the
2000-2007 expansion and fell again during and after the 2007-2009 recession.
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Figure 4. Average Real Income, All Families and Married Couples, 1979 to 2010
(in 2010 dol ars)
$120,000
$100,000
$80,000
$60,000
$40,000
10
1979
1985
1990
1995
2000
2005
20
Peak of economic expansion
All families
Married couples

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the
Current Population Survey (CPS).
Note: Estimates are for families headed by persons ages 22 to 62.
Figure 5. Changes in Average Real Family Income, by Quintile,
All Families, 1979 to 2010
(in 2010 dol ars)
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
-$10,000
-$20,000
1979-1989
1989-2000
2000-2007
2007-2010
1979-2010
Average
Lowest quintile
Next-to-lowest quintile
Middle quintile
Next-to-highest quintile
81st to 95th percentiles
Top 5%

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the
Current Population Survey (CPS).
Notes: Estimates are for families headed by persons ages 22 to 62. Because of a change in the CPS, the
changes in the average income of all families and the average income of the top 5% of families do not include
the change in income from 1992 to 1993. See the discussion of topcoding in the Appendix.
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The Trend in Family Income from 1979 to 2010

From 1979 to 2010, average real family income increased more for upper income than lower
income families. In 2010, the average income of families at the three lowest quintiles was lower
than in 1979. For families at the two lowest quintiles, average income fell during the expansion of
the 1980s. During the expansion of the 1990s, average income increased at all quintiles. By
contrast, average income fell for families at all quintiles during the expansion of 2000-2007.
During and after the 2007-2009 recession, average income fell again for families at all quintiles.
By 2010, the average incomes of families at the lowest and next-to-lowest quintiles were $3,350
(22.3%) and $4,510 (13.1%) lower, respectively, than in 1979.
At the middle quintile, average real family income in 2010 was $1,660 (3.2%) lower in 2010 than
in 1979. Although the average income of families at the middle quintile increased during both
expansions in the 1980s and 1990s, it fell during the 2000-2007 expansion and again during and
after the 2007-2010 recession.
For families at the top two quintiles, average real income was higher in 2010 than in 1979. For
families at the next-to-highest quintile, average income increased by $7,720 (10.6%). At the 81st
to 95th percentiles, average income increased by $26,140 (25.0%). For the top 5% of families,
average income increased by $55,280 (25.5%). As was the case with families at the middle
quintile, the average income of families at the top two quintiles increased during both the 1980s
and 1990s, but it fell from 2000 to 2007 and again from 2007 to 2010.
Although the average real income of the top 5% of families, as reported here, increased by
$55,280 from 1979 to 2010, a change in the CPS affected the observed change in income from
1992 to 1993. Because of a change in the coding of the incomes of persons with the highest
incomes, the increase in the average income of the top 5% of families from 1979 to 2010 may
have been more or less than $55,280. However, during the expansion of the 1990s, the average
income of the top 5% of families increased annually from 1993 to 2000. Thus, the average
income of the top 5% of families likely increased from 1992 to 1993 as well. Therefore, the
increase in average income from 1979 to 2010 for the top 5% of families was probably at least
$55,280. (See the discussion of topcoding in the Appendix.)
Married Couples
The average real income of married couple families is higher than the average income of all
family types combined. Moreover, from 1979 to 2010, the average income of married couples
increased more, or fell less, than it did for all families.
In 2010, the average real income of married couples was $18,610 (23.4%) higher than in 1979.
Average income increased by $9,800 (13.4%) and $15,080 (17.7%), respectively, during the
economic expansions of the 1980s and 1990s. Although average income rose during the
expansion of 2000-2007, the increase was only $110 (0.1%). Average income fell by $6,370
(6.2%) during and after the 2007-2010 recession. (See Figure 6.)
As was the case with all families, average real income increased more for upper income than
lower income married couples. In 2010, the average income of couples at the lowest quintile was
$1,550 (5.9%) lower than in 1979. The average income of couples at the lowest quintile fell
during the 1980s, but increased during the 1990s. Their average income fell during the expansion
of the 2000s and again from 2007 to 2010.
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The Trend in Family Income from 1979 to 2010

Figure 6. Changes in Average Real Family Income, by Quintile,
Married Couples, 1979 to 2010
(in 2010 dol ars)
$100,000
$80,000
$60,000
$40,000
$20,000
$0
-$20,000
-$40,000
1979-1989
1989-2000
2000-2007
2007-2010
1979-2010
Average
Lowest quintile
Next-to-lowest quintile
Middle quintile
Next-to-highest quintile
81st to 95th percentiles
Top 5%

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the
Current Population Survey (CPS).
Notes: Estimates are for families headed by persons ages 22 to 62. Because of a change in the CPS, the
changes in the average income of all married couples and the average income of the top 5% of married
couples do not include the change in income from 1992 to 1993. See the discussion of topcoding in the
Appendix.
For married couples at the other four quintiles, average real income was higher in 2010 than in
1979. For couples at the next-to-lowest quintile, average income rose by $3,880 (8.0%) from
1979 to 2010. For couples at the middle quintile, income increased by $12,830 (19.7%), and for
couples at the next-to-highest quintile, income increased by $25,250 (30.0%). For couples at the
81st to 95th percentiles, average income rose by $47,800 (40.5%). For couples at these income
levels, average income increased during each of the three economic expansions from 1979 to
2007, but it fell during and after the 2007-2009 recession.
From 1979 to 2010, the largest increase in average real income was for the top 5% of married
couples. Their average income increased by $85,590 (34.4%). The average income of the top 5%
of couples increased during both the 1980s and 1990s, but it fell during the expansion of the
2000s and again from 2007 to 2010. Again, because a change in the CPS affected the observed
change in income from 1992 to 1993, the increase in average income from 1979 to 2010 for the
top 5% of married couples was probably at least $85,590. (See the discussion of topcoding in the
Appendix.)
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The Trend in Family Income from 1979 to 2010

Family Earnings Per Hour and Total Hours Worked
Income inequality can change for a number of reasons. For most families, earnings (i.e., income
from work) are the largest source of income. (See Figure A-2 in the Appendix.) Total family
earnings may rise or fall because of a change in earnings per hour, a change in the total number of
hours worked, or both.
Earnings Per Hour Worked
All Families
In 2010, the average real hourly earnings of all families was $3.60 (17.7%) higher than in 1979.
The largest increases occurred during the economic expansions of the 1980s and 1990s. Average
earnings fell during the expansion of the 2000s and again from 2007 to 2010. (Figure 7.)
Figure 7. Changes in Average Real Hourly Earnings, by Quintile,
All Families, 1979 to 2010
(in 2010 dol ars)
$16
$14
$12
$10
$8
$6
$4
$2
$0
-$2
-$4
1979-1989
1989-2000
2000-2007
2007-2010
1979-2010
Average
Lowest quintile
Next-to-lowest quintile
Middle quintile
Next-to-highest quintile
81st to 95th percentiles
Top 5%

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the
Current Population Survey (CPS).
Notes: Estimates are for families headed by persons ages 22 to 62. Because of a change in the CPS, the
changes in the average hourly earnings of all families and the average hourly earnings of the top 5% of
families do not include the change in earnings from 1992 to 1993. See the discussion of topcoding in the
Appendix.
As was the case with average family income, average real hourly earnings increased more for
upper income than lower income families. In 2010, the average hourly earnings of families at the
two lowest quintiles were lower than in 1979. At the lowest and next-to-lowest quintiles, average
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The Trend in Family Income from 1979 to 2010

hourly earnings fell by $0.30 (3.9%) and $0.60 (4.3%) an hour. Average earnings for families at
these two quintiles fell during the economic expansion of the 1980s, increased during the
expansion of the 1990s, changed little from 2000 to 2007, and fell during and after the 2007-2009
recession.
Unlike the change in average income, which increased during the 1980s, the average real hourly
earnings of families at the middle quintile fell during the expansion of the 1980s. Their average
earnings increased during the expansion of the 1990s, fell during the expansion of the 2000s, and
fell again from 2007 to 2010. However, unlike families at the two lowest quintiles, the average
earnings of families at the middle quintile were higher, by $0.30 (1.6%) an hour, in 2010 than in
1979.
From 1979 to 2010, the largest increases in average real hourly earnings were for families at the
two top quintiles. For families at the next-to-highest quintile, earnings increased by an average of
$1.60 (8.3%) an hour. For families at the 81st to 95th percentiles, average hourly earnings
increased by $6.60 (27.7%). For families at the next-to-highest quintile and at the 81st to 95th
percentiles, earnings increased during each of the three economic expansions from 1979 to 2007,
but they fell during and after the 2007-2009 recession. On the other hand, the average hourly
earnings of the top 5% of families increased during both the 1980s and 1990s, but they fell from
both 2000 to 2007 and 2007 to 2010. From 1979 to 2010, the top 5% of families experienced the
largest increase, at least $13.70 (30.0%), in average hourly earnings.
Married Couples
Average real hourly earnings are greater for married couple families than for all family types
combined. Moreover, from 1979 to 2010, average hourly earnings increased more for married
couples than for all families.
In 2010, the average real hourly earnings of married couples were $4.70 (21.8%) higher than in
1979. Earnings were higher at all quintiles, but increased more for upper income than lower
income couples. Average earnings increased during each of the three economic expansions from
1979 to 2007. (See Figure 8.)
During the expansion of the 1980s, average real income fell only for married couples at the
bottom quintile. (See Figure 6.) But, during this same time period, average real hourly earnings
fell for couples at the three lowest quintiles. Their earnings increased during the expansion of the
1990s and again during the expansion between 2000 and 2007. But, their average earnings fell
during and after the 2007-2009 recession.
From 1979 to 2010, married couples at the top two quintiles experienced the largest increases in
average real hourly earnings. Unlike married couples at the three lowest quintiles, average hourly
earnings for couples at the top two quintiles increased during the expansion of the 1980s. Their
earnings also increased during the expansion of the 1990s. During the expansion of the 2000s,
hourly earnings increased for couples at the next-to-highest quintile and for couples at the 81st to
95th percentiles, but they fell for the top 5% of couples. In 2010, the average earnings of couples
at the next-to-highest quintile were $4.50 (21.4%) higher than in 1979. For couples at the 81st to
95th percentiles, average earnings were $10.80 (43.1%) higher in 2010 than 1979. The top 5% of
couples experienced the largest increase, at least $17.10 (33.8%), in hourly earnings.
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The Trend in Family Income from 1979 to 2010

Figure 8. Changes in Average Real Hourly Earnings, by Quintile,
Married Couples, 1979 to 2010
(in 2010 dol ars)
$18
$14
$10
$6
$2
-$2
-$6
-$10
1979-1989
1989-2000
2000-2007
2007-2010
1979-2010
Average
Lowest quintile
Next-to-lowest quintile
Middle quintile
Next-to-highest quintile
81st to 95th percentiles
Top 5%

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the
Current Population Survey (CPS).
Notes: Estimates are for families headed by persons ages 22 to 62. Because of a change in the CPS, the
changes in the average hourly earnings of all married couples and the average hourly earnings of the top 5%
of married couples do not include the change in earnings from 1992 to 1993. See the discussion of
topcoding in the Appendix.
Hours Worked
In addition to earnings per hour, family earnings are affected by the total number of hours
worked. For all family types combined, from 1979 to 2010, annual hours worked peaked in 1989.
For married couple families, annual hours worked peaked in 2000.
All Families
In 2010, families worked an average of three weeks (120 hours) less than they worked in 1979.
Average hours worked fell the most, by an average of 6½ weeks (260 hours), for families at the
lowest and next-to-lowest quintiles. At the middle quintile, average hours worked fell by 4½
weeks (180 hours). For families at the 81st to 95th percentiles, average hours worked fell by an
average of three weeks (120 hours). For the top 5% of families, average hours worked fell by
over four weeks (170 hours). On the other hand, families at the next-to-highest quintile worked an
average of one-half week (20 hours) more in 2010 than in 1979. (See Figure 9.)
During the economic expansion of the 1980s, average hours worked by all families increased by
six weeks (240 hours), peaking at 3,240 hours in 1989. Total hours worked increased for families
at all quintiles, but the increases were greater for middle and upper income families. At the next-
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The Trend in Family Income from 1979 to 2010

to-highest quintile, average hours worked increased by almost nine weeks (350 hours). For
families at the 81st to 95th percentiles, average hours worked increased by 7½ weeks (400 hours).
At the middle quintile, average hours worked increased by over six weeks (250 hours). For the
top 5% of families, average hours worked increased by over five weeks (210 hours).
After the 1989 peak, average hours worked fell during the expansion of the 1990s and the
expansion of the 2000s. During the expansion of the 1990s, except for families at the lowest
quintile, average hours worked fell at all quintiles. During the expansion of the 2000s, average
hours worked fell at all quintiles except for the top 5% of families. Average hours worked fell at
all quintiles during and after the 2007-2009 recession.
Figure 9. Changes in Total Hours Worked Annually, by Quintile,
All Families, 1979 to 2010
400
300
200
100
0
-100
-200
-300
-400
1979-1989
1989-2000
2000-2007
2007-2010
1979-2010
Average
Lowest quintile
Next-to-lowest quintile
Middle quintile
Next-to-highest quintile
81st to 95th percentiles
Top 5%

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the
Current Population Survey (CPS).
Note: Estimates are for families headed by persons ages 22 to 62.
Married Couples
Married couple families work more hours annually than all family types combined. In addition,
unlike all families, who worked fewer hours on average in 2010 than in 1979, married couples
worked an average of 2½ weeks (100 hours) more in 2010 than in 1979. Nevertheless, average
hours worked fell by over five weeks (210 hours) for couples at the lowest quintile. Average
hours worked increased for couples at the three middle quintiles. The largest increase in hours
worked, nine weeks (360 hours), was for couples at the middle quintile. At the next-to-lowest
quintile, average hours worked increased by three weeks (120 hours). At the next-to-highest
quintile, average hours rose by almost six weeks (230 hours). But, couples at the 81st to 95th
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The Trend in Family Income from 1979 to 2010

percentiles worked three weeks (120 hours) less in 2010 than in 1979. The top 5% of couples
worked almost a week (30 hours) more in 2010 than in 1979. (See Figure 10.)
Figure 10. Changes in Total Hours Worked Annually, by Quintile,
Married Couples, 1979 to 2010
400
300
200
100
0
-100
-200
-300
-400
1979-1989
1989-2000
2000-2007
2007-2010
1979-2010
Average
Lowest quintile
Next-to-lowest quintile
Middle quintile
Next-to-highest quintile
81st to 95th percentiles
Top 5%

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the
Current Population Survey (CPS).
Note: Estimates are for families headed by persons ages 22 to 62.
The average number of hours worked by married couples peaked at 3,780 hours in 2000. During
the expansion of the 1980s, average hours worked increased by six weeks (240 hours). Average
hours worked increased at all quintiles. The largest increase, almost 10 weeks (390 hours),
occurred among married couples at the middle quintile.
Unlike the decline in average hours worked by all family types, during the expansion of the
1990s, average hours worked by married couples increased by three weeks (120 hours). Except at
the top quintile, average hours increased for couples at all quintiles. At the middle quintile,
average hours worked increased by over five weeks (210 hours). The largest increase, almost 5½
weeks (220 hours), took place among couples at the next-to-highest quintile. However, among the
top 5% of couples, average hours worked fell by almost seven weeks (270 hours).
From 2000 to 2007, average hours worked fell for couples at all income levels except for the top
5% of couples. The largest decline, over four weeks (170 hours), was for couples at the lowest
quintile. Average hours worked fell by two weeks (80 hours) at the next-to-lowest quintile and by
over a week (50 hours) for couples at the middle quintile. At the next-to-highest quintile, average
hours worked fell by almost two weeks (70 hours) and by almost three weeks (110 hours) for
couples at the 81st to 95th percentiles. For the top 5% of couples, on the other hand, total hours
worked increased by almost five weeks (190 hours), partially offsetting the decline in hours
worked during the expansion of the 1990s.
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The Trend in Family Income from 1979 to 2010

During and after the 2007-2009 recession, average hours worked fell for married couples at all
quintiles. Average hours worked fell more for lower income than upper income couples.
The Separate Effects of Hourly Earnings and Hours Worked on
Total Family Earnings

The previous two sections analyzed the changes in real hourly earnings and total hours worked.
The change in average family earnings can be separated into the effect of higher or lower real
hourly earnings and the effect of working more or less hours. The analysis in this section is based
on estimates of average total hours worked shown in Table A-1 and the estimates of average
hourly earnings from Table A-6. Both tables are in the Appendix.
All Families
In 2010, average total family earnings were $8,090 higher than in 1979. However, for families at
the three lowest quintiles, average family earnings were lower in 2010 than 1979 (by $2,530,
$4,510, and $2,260 for families at the lowest, next-to-lowest, and middle quintiles, respectively).
Most of the decline in earnings was the result of families working fewer hours in 2010 than in
1979. On the other hand, for families at the top two quintiles, average earnings were higher in
2010 than in 1979 (by $6,050, $23,500, and $51,460 for families at the next-to-highest quintile,
81st to 95th percentiles, and the top 5% of families, respectively). Unlike the change in earnings
for the three lowest quintiles, the increase in average earnings for families at the top two quintiles
was due mostly to an increase in earnings per hour worked. (See Table 2.)
During the expansion of the 1980s, the average total earnings of families at the lowest quintile
fell because the increase in total hours worked was more than offset by the decline in real hourly
earnings. Conversely, at the next-to-lowest and middle quintiles, the decline in real hourly
earnings was more than offset by an increase in hours worked. For families at the 81st to 95th
percentiles and for the top 5% of families, most of the increase in average earnings was due to
greater earnings per hour worked.
During the expansion of the 1990s, average total earnings increased for families at all quintiles.
Except for families at the lowest quintile, families worked fewer hours. But, the decrease in hours
worked was more than offset by an increase in real hourly earnings.
During the expansion of the 2000s, average total earnings fell for families at all quintiles. Except
for families at the 81st to 95th percentiles and the top 5% of families, average earnings fell mainly
because families worked fewer hours. For families at the 81st to 95th percentiles, an increase in
earnings per hour was more than offset by a reduction in hours worked. For the top 5% of
families, all of the decline in average earnings was due to a drop in earnings per hour.
During and after the recession of 2007-2009, average total family earnings fell at all quintiles.
The decline was due to both a decline in real hourly earnings and a reduction in hours worked.

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Table 2. Estimates of the Relative Effects of Changes in Real Hourly Earnings and Total Hours Worked on Family Earnings,
by Quintile, 1979 to 2010
(in 2010 dol ars)
1979 to 1989
1989 to 2000
2000-2007
2007 to 2010
1979 to 2010
Change
Change
Total
Change
Change
Total
due to
Change
Total
Change
Change
Total Change Change Total
due to Change
change
due to
due to
change
earnings
due to
change
due to
due to change due to due to change earnings due to
in real
earnings
hours
in real
per
hours
in real
earnings
hours
in real earnings hours in real
per
hours
earnings
per hour
worked earnings
hour
worked
earnings per hour worked earnings per hour worked earnings
hour
worked
Real Earnings
All Families
Average
$7,600
$2,960
$4,640
$5,320
$7,760
-$2,440 -$1,330 $520
-$1,850 -$3,670 $150 -$3,820
$8,090 $10,620 -$2,530
Lowest quintile
-680 -980 300
1,450 1,280 170 -850
50
-900 -2,450 -760 -1,690 -2,530 -480 -2,050
Next-to-lowest quintile
600
-1,880
2,470
1,010 2,610 -1,600 -1,550
50
-1,600 -4,570 -1,940 -2,630 -4,510 -1,270 -3,240
Middle quintile
2,830
-1,170
4,000
1,740 3,460 -1,730
-2,050
-400 -1,660 -4,770 -920 -3,850 -2,260 770
-3,030
Next-to-highest quintile
7,750
720
7,030
4,860
6,000
-1,150 -1,110 520
-1,630 -5,440 -1,060 -4,370 6,050 5,640 410
81st – 95th percentiles
16,890
9,480
7,410
11,520
17,440
-5,910 -360
2,660
-3,020 -4,550 -1,420 -3,130 23,500 26,630 -3,120
Top 5%
50,770
41,640
9,130
25,590
40,910
-15,320 -14,570 -14,900 330 -11,360 -5,420 -5,940 51,460 59,070 -7,610

Married Couples
Average
8,880
3,930
4,950
14,020
11,310
2,710
-60
1,910
-1,970 -4,520 180
-4,700
18,570 16,350 2,230
Lowest quintile
-240 -2,240 2,000
3,480 2,870 610 -420
1,330
-1,750 -4,250 -920 -3,330 -1,430 720
-2,150
Next-to-lowest quintile
1,620
-2,280
3,890
6,150 3,530 2,610 -140
1,010
-1,150 -5,550 -1,690 -3,850 2,070 310 1,760
Middle quintile
5,090
-1,950
7,040
10,230 6,400 3,820 130 1,170
-1,040 -4,720 -1,060 -3,650 10,740 4,010 6,720
Next-to-highest quintile
10,080
5,240
4,830
14,990
9,880
5,110
1,870
3,700
-1,830 -4,090 -570 -3,510 22,850 17,510 5,350
81st – 95th percentiles
17,610
14,960
2,650
25,780
26,350
-560
2,320 6,310
-3,990 -2,490 520
-3,010
43,230 46,790 -3,560
Top 5%
55,860
48,630
7,230
56,690
73,470
-17,000 -18,000 -33,920 15,920 -17,600 -14,180 -3,420 74,440 73,090 1,350
Source: Estimates of the change in annual earnings due to changes in average hours worked and in average hourly earnings are from the unrounded estimates of annual hours worked in
Table A-1 in the Appendix and of earnings per hour worked in Table A-6, also in the Appendix. An explanation and illustration of how the estimates in Table 2 were calculated
are provided in the Appendix.
Note: Estimates are for families headed by persons ages 22 to 62.
CRS-17

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The Trend in Family Income from 1979 to 2010

Married Couples
In 2010, married couples earned an average of $18,570 more than they earned in 1979. However,
couples at the lowest quintile earned an average of $1,430 less in 2010 than in 1979. Their
earnings fell mainly because of a reduction in hours worked. Average earnings increased at other
quintiles. Most of the increase in average earnings of couples at the next-to-lowest and middle
quintiles was due to an increase in hours worked. By contrast, at the top quintile, most of the
increase in average earnings was due to higher earnings per hour.
During the economic expansion of the 1980s, real hourly earnings fell for married couples at the
lowest quintile because the decline in real hourly earnings was greater than the increase in hours
worked. For couples at the next-to-lowest and middle quintiles, an increase in hours worked more
than offset the decline in real hourly earnings. For couples at the 81st to 95th percentiles and for
the top 5% of couples, most of the increase in average earnings was due to greater earnings per
hour worked.
Average total earnings increased for married couples at all quintiles during the expansion of the
1990s. For couples at the first four quintiles, most of the increase in average earnings was due to
higher hourly earnings. But, for couples at the top quintile, all of the increase in average earnings
was due to higher earnings per hour.
During the economic expansion of the 2000s, average total earnings fell for married couples at
the two lowest quintiles. Despite an increase in hourly earnings, average earnings fell because of
a reduction in hours worked. At the middle quintile, the small increase in average earnings, an
average of $130, was due to higher hourly earnings, which offset a reduction in hours worked.
The average earnings of couples at the next-to-highest quintile and at the 81st to 95th percentiles
increased despite a reduction in hours worked. On the other hand, for the top 5% of couples,
despite an increase in hours worked, average earnings fell because of lower hourly earnings.
Other Reasons For Changes in Family Income
Family income may change for reasons not considered in this report. For example, family income
may change if the age distribution of the labor force changes. Earnings generally rise as workers
age and gain work experience. Also, better-educated workers generally earn more than workers
with less education. In 2010, the labor force was both more experienced and better educated than
in 1979. In 2010, the percentage of the labor force between the ages of 45 and 62 was 10.8
percentage points higher than in 1979 (42.7% versus 31.9%). The percentage of the labor force
that had completed at least four years of college increased by 13.0 percentage points (from 21.5%
to 34.5%). (See Table 3.) These changes may or may not affect the distribution of income. For
example, inequality could rise as the workforce ages and workers gain experience if the increase
in earnings is greater for workers who already earned more than other workers. Conversely,
inequality could fall as the workforce becomes more educated if the demand for skilled workers
falls relative to the supply of educated workers.
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The Trend in Family Income from 1979 to 2010

Earnings may also be affected by changes in the distribution of workers by occupation or
industry.11 For example, from 1979 to 2010, manufacturing employment fell by 7.9 million
workers (from 19.4 million to 11.5 million). The manufacturing industry is an important source of
employment for less-educated workers, especially men.12 In contrast to the decline in
employment in manufacturing, from 1979 to 2010, employment increased by 12.8 million in
educational and health services (from 6.8 million to 19.6 million) and by 9.4 million in
professional and business services (from 7.3 million to 16.7 million).13
Finally, earnings may change because of institutional changes, such as changes in government
regulations that affect labor, product, or financial markets. Increased globalization may affect
wages. Changes in wage standards, such as federal, state, and local minimum wages, can affect
family earnings. The degree of unionization may affect the earnings of workers and their families.
Table 3. Changes in the Age and Education of the Labor Force, 1979 to 2010
Year
Percentage Point Change,
Age
1979 to 2010
1979 2010
22-34
44.6% 32.4%
-12.2
35-44 23.5%
24.9%
1.5
45-54 19.7%
26.9%
7.2
55-62 12.2%
15.8%
3.5
Total 100.0%
100.0%

Education



Less than a high school education
19.5%
8.5%
-11.0
High school graduatea 37.6%
28.2%
-9.4
Some col ege
21.4%
28.9%
7.5
College graduatea 13.2%
22.9%
9.7
Post graduate education
8.3%
11.6%
3.2
Total 100.0%
100.0%

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the Current
Population Survey (CPS).
a. For 2010, high school and col ege graduates are persons with degrees. For 1979, high school and col ege
graduates are persons who completed four years of high school or college.

11 For an analysis of employment in the manufacturing industry, see CRS Report R41898, Job Creation in the
Manufacturing Revival
, by Marc Levinson.
12 According to a study of less-skilled workers ages 18 to 54, in 2002, 39% of men and 27% of women were employed
in manufacturing. Less-skilled workers were defined as persons with a high school education or less. Rebecca M. Blank
and Heidi Shierholz, Exploring Gender Differences In Employment and Wage Trends Among Less-Skilled Workers,
National Bureau of Economic Research, Working Paper 12494, August 2006, pp. 4, 15, available at
http://www.nber.org/papers/w12494.
13 U.S. Department of Labor, Bureau of Labor Statistics, Current Employment Statistics, available at
http://stats.bls.gov/ces.
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The Trend in Family Income from 1979 to 2010

Conclusion
Whether families are defined to include only those headed by married couples or defined to
include married couples, single parents, and individuals combined, the average real earnings of
families at the middle three quintiles increased during the economic expansions of the 1980s and
1990s. But, for all family types grouped together, the average earnings of families at the three
middle quintiles fell during the economic expansion of the 2000s and again during the 2007-2009
recession. As a result, the average real earnings of all families at the next-to-lowest and middle
quintiles were lower in 2010 than in 1979.
On the other hand, for families headed by married couples at the middle three quintiles, average
real earnings were higher in 2010 than in 1979. At the next-to-lowest and middle quintiles, there
was little change in average earnings during the economic expansion of the 2000s. The loss of
earnings during the recent recession did not offset the gains from the expansions of the 1980s and
1990s. From 1979 to 2010, married couples at the three middle quintiles benefited from an
increase in both real hourly earnings and total hours worked. At the next-to-lowest and middle
quintiles, most of the growth in the earnings of married couples was due to an increase in the
number of hours worked.
At the lowest quintile, for all family types and for married couples only, average real earnings
were lower in 2010 than 1979. Under both family definitions, the decline in average earnings was
due mainly to a reduction in hours worked.
From 1979 to 2010, average real earnings increased the most for families at the top quintile.
Regardless of how families are defined, the average earnings of these families grew mainly
because of an increase in earnings per hour. The average hours worked (over 4,000 annually) by
the top quintile of families suggests that they are two-earner families.

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The Trend in Family Income from 1979 to 2010

Appendix. Data and Methodology
This appendix provides a more detailed description of the data and methodology used in this
report. Table A-4, Table A-5, and Table A-6 show the data discussed in the body of the report.
Data
The analysis in this report is based on 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 market information.
The sample for the ASEC supplement 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 family not on a military base. The
sample does not include persons living in institutions (such as psychiatric hospitals, nursing
homes, or correctional facilities). The 2011 supplement collected information from families living
in about 75,900 households.14
The ASEC supplement asks questions about individual income and earnings for the previous year.
Income consists of money income, and includes wages and salaries, income from self-
employment, interest and dividends, social security and pension benefits, public assistance,
unemployment and worker’s compensation, alimony and child support, and other types of money
income. Wages and salaries include earnings from self-employment, tips, commissions, and cash
bonuses. Wages and salaries tend to be reported more accurately than income from other sources.
Money income does not include in-kind transfers for food, housing, healthcare, or energy
assistance. Nor does it include capital gains or noncash or deferred compensation (e.g., employer
contributions for health insurance or to a retirement plan). Money income is income before taxes
or other deductions.15 In this report, total family income consists of the sum of money income of
all members of a family.
In Table A-4 and Table A-6, comparisons of real income and earnings between consecutive years
should be made with caution. When answering questions about annual income or earnings, some
respondents may round off their answers. For example, some individuals may report that they
earned $50,000 the previous year, when they may have actually earned either more or less than
$50,000. From one year to the next, this rounding may affect the observed trend in real income or
earnings.
In the CPS, a family is defined as a group of two or more persons who are living together and
who are related by birth, marriage, or adoption.16 The CPS defines single individuals as either
“nonfamily householders” or “secondary individuals.”

14 U.S. Census Bureau, Current Population Survey, 2011 Annual Social and Economic (ASEC) Supplement, pp. 1-1, 9-
3, G-2, available at http://www.census.gov/apsd/techdoc/cps/cpsmar11.pdf.
15 Ibid., p. 9-4.
16 Ibid., p. 9-2.
Congressional Research Service
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.
The Trend in Family Income from 1979 to 2010

This report uses two categories of “family.” First, the report analyzes the incomes and earnings of
“all families,” where married couples, single parents, and unrelated individuals are combined.
Second, the incomes and earnings of married couples are analyzed separately. In this report, a
primary family and a related or unrelated subfamily living in the same family are treated as
separate families. An unmarried couple with children is treated as a single parent and a single
individual. Unmarried couples without children are treated as two single individuals.
The analysis in this report includes families headed by persons between the ages of 22 and 62. In
both 1979 and 2007, the labor force participation rate first reached 75% for persons age 22. In
2010, the labor force participation rate first reached 75% for persons age 24. In both 2007 and
2010, for persons over age 62 (in 1979, for persons over 61), the labor force participation rate fell
below 50%.
Topcoding
To protect the confidentiality of survey participants, the CPS assigns an income amount to higher
income persons. Changes in these amounts, or topcodes, can affect the observed trend in real
income and earnings. Since 1996, for persons with earnings above the topcoded amounts, the
amount of earnings reported in the public CPS files is the average earnings of workers with
similar characteristics. In the CPS, average earnings are calculated for persons based on gender,
race, ethnicity, and whether or not a person works full-time, year-round. Since 1999, for persons
with incomes above the topcoded amounts, the public CPS files report the average income of
persons with topcoded income. This report uses average topcoded earnings and income as
reported in the CPS for the years that these averages are in the public-use files.17
For consistency over the period from 1979 through 2010, the analysis in this report uses data
published in a report by Jeff Larrimore et al.18 Data in their report replicate the calculations of
average topcoded earnings and income for the years before these averages were available to the
public in the CPS. The calculations of average income and earnings in the report by Larrimore et
al. follow the approach used in the CPS; average earnings and income are calculated for persons
based on gender, race, ethnicity, and whether or not a person worked full-time, year-round.
Nevertheless, average topcoded earnings and income published by Larrimore et al. are subject to
some limitations. The economists were given access to internal CPS data. But the internal data
are also topcoded, albeit at higher levels than the data available to public users. In some years,
changes in the highest earnings amounts in the internal CPS data files may affect the observed
trend in inequality. Between the years 1993 and 1994, the highest amount of earnings available in
the internal CPS data increased from $299,999 to $999,999.19 This increase affects the observed

17 Instead of average income, median income is an alternative measure of family income. If the incomes of all families
are ranked from lowest to highest, the median is the value in the middle of the distribution. Because some families have
higher incomes, average income is greater than median income. Evidence suggests that the growth in average wage and
salary income has kept pace with the growth in productivity, while the growth in median income has not. See Ian Dew-
Becker and Robert Gordon, Where Did the Productivity Growth Go? Inflation Dynamics and the Distribution of
Income
, National Bureau of Economic Research, Working Paper 11842, December 2005, available at
http://www.nber.org.
18 Jeff Larrimore, 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.
19 Ibid., p. 49.
Congressional Research Service
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.
The Trend in Family Income from 1979 to 2010

change in average earnings and income from the years 1992 to 1993. (Recall that the ASEC
supplement asks questions about earnings and income for the previous year.) Because of the
changes in the internal CPS data from 1993 to 1994, this report follows the approach of Richard
Burkhauser et al. and does not include the changes in earnings and income from 1992 to 1993 in
the calculation of changes in average earnings and income. 20 For the same reason, the
calculations of changes in the average income and earnings of families with the top 5% of income
and earnings do not include the changes from 1992 to 1993.
Figure A-1 shows how the change in topcoding affects average real family income. Using the
estimates in the report by Larrimore et al. to calculate average income, the income of the top 5%
of families increased by $43,600 from 1992 to 1993 (from $223,230 to $266,830). This amount
cannot be separated into the actual change in income and the amount that is due to the change in
internal topcoding. If the change in income from 1992 to 1993 was known, the actual change in
average income from 1979 to 2010 would probably be more than the $55,280 amount shown in
this report. Average income increased during the economic expansion of the 1990s and likely
increased from 1992 to 1993 as well.21
Figure A-1. Average Real Family Income and Average Real Income of the
Top 5% of Families, 1979 to 2010
(in 2010 dol ars)
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
79
85
90
95
00
05
10
19
19
19
19
20
20
20
Average
Top 5%
Average, 1992-1993
Top 5%, 1992-1993

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the
Current Population Survey (CPS).
Note: Estimates are for families headed by persons ages 22 to 62.

20 Richard V. Burkhauser, Jeff Larrimore, and Kosali I. Simon, A “Second Opinion” on the Economic Health of the
American Middle Class
, National Bureau of Economic Research, Working Paper 17164, p. 7, available at
http://www.nber.org/papers/w17164.
21 For a discussion of the topcoding issue, see Paul Ryscavage, “A Surge in Growing Income Inequality?” Monthly
Labor Review
, vol. 118, August 1995, pp. 51-61.
Congressional Research Service
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.
The Trend in Family Income from 1979 to 2010

Controlling for Family Hours Worked
From 1979 to 2010, the labor force participation rate of women increased significantly, while the
labor force participation rate of men declined. Thus, part of the observed trend in family income
from 1979 to 2010 may be due to the increased hours worked by women. One way to control for
changes in total hours worked would be to divide total family income by the total number of
hours worked by all family members. But, the share of earnings in family income is not consistent
across the income distribution. Earnings typically account for a smaller share of income for
families in the bottom than at the top of the distribution. (See Figure A-2.) Thus, in this report, to
account for changes in hours worked, total family earnings are divided by total family hours
worked.
Figure A-2. Family Earnings as a Share of Family Income,
by Quintile, 1979, 2007, and 2010
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Lowest quintile Next-to-lowest Middle quintile
Next-to-
81st to 95th
Top 5%
quintile
highest
percentiles
quintile
1979
2007
2010

Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the
Current Population Survey (CPS).
Note: Estimates are for families headed by persons ages 22 to 62.
Estimating the Relative Effects of Changes in Earnings Per Hour
and Changes in Total Hours Worked on Total Family Earnings

Table 2 in the main body if this report decomposes changes in average total family earnings into
the amount that is due to changes in family earnings per hour worked and the amount that is due
to changes in total hours worked by all family members. The decomposition is based on the
estimates of the changes in hours worked and earnings per hour from Table A-1 and Table A-6
shown in this Appendix.
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The Trend in Family Income from 1979 to 2010

Table A-1. Average Hours Worked by All Family Members, by Quintile, 1979 to 2010
Total Hours Worked
Change in Hours Worked
1979-
1989-
2000-
2007-
1979-
1979 1989 2000 2007 2010 1989
2000
2007
2010
2010
Annual Hours
All Families
Average

3,002 3,237 3,123 3,044 2,882 235 -114 -79 -162 -120
Lowest
quintile
1,675 1,714 1,736 1,627 1,415 39
22 -109 -212 -260
Next-to-lowest
quintile 2,403 2,600 2,474 2,353 2,147 197 -126 -121 -206 -256
Middle
quintile
2,954 3,200 3,096 2,999 2,771 246 -104 -97 -228 -183
Next-to-highest
quintile
3,427 3,779 3,724 3,649 3,447 352 -55 -75 -202
20
81st to 95th
percentiles 4,123 4,422 4,210 4,110 4,007 299 -212 -100 -103 -116
Top
5%
4,386 4,598 4,305 4,310 4,218 212 -293
5 -92 -168

Married Couples
Average

3,421 3,660 3,779 3,702 3,520 239 119 -77 -182
99
Lowest
quintile
2,417 2,627 2,690 2,522 2,205 210
63 -168 -317 -212
Next-to-lowest
quintile 3,072 3,340 3,518 3,443 3,190 268 178 -75 -253 118
Middle
quintile
3,342 3,731 3,936 3,883 3,697 389 205 -53 -186 355
Next-to-highest
quintile
3,801 4,025 4,243 4,170 4,032 224 218 -73 -138 231
81st to 95th
percentiles 4,391 4,490 4,472 4,358 4,274 99 -18 -114 -84 -117
Top
5%
4,264 4,412 4,146 4,333 4,290 148 -266 187 -43
26
Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the Current
Population Survey (CPS).
Notes: Estimates are for families headed by persons ages 22 to 62. The estimates are for families with reported
earnings. Families are ranked by total income.
Average total earnings over time change for three reasons: the change in earnings per hour
worked, the change in hours worked, and the interaction of changes in earnings and hours
worked. Table 2 shows that the change in average real family earnings from 1979 to 2010 was
$8,090. Table A-1 shows that the average number of hours worked per year by all families fell by
120 hours, from 3,002 hours to 2,882 hours. Table A-6 shows that average real earnings per hour
worked increased from $19.25 to $23.59. Taking into account the issue of topcoding discussed
above, from 1979 to 2010, average real earnings per hour worked increased by $3.61. Table A-2
illustrates the decomposition of the change in average total earnings from 1979 to 2010.
Congressional Research Service
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The Trend in Family Income from 1979 to 2010

Table A-2. Illustration of the Decomposition of Average Annual Earnings Due to
Changes in Real Hourly Earnings and Annual Hours Worked
Change in average annual earnings due to the change in annual hours worked, holding real hourly earnings constant at their 1979
level:
(Average annual hours worked2010 - Average annual hours worked1979) x Average real hourly earnings1979
( 2,882 - 3,002 ) x $19.25 = -120 x $19.25 = -$2,310.00
Change in average annual earnings due to the change in real hourly earnings, holding annual hours worked constant at their 1979
level (removing the change in hourly earnings from 1992 to 1993 because of the issue of topcoding):
((Average real hourly earnings2010 - Average real hourly earnings1979)) -
(Average real hourly earnings1993 - Average real hourly earnings1992)) x Average annual hours worked1979
($23.59 - $19.25) – ($20.57- $19.84) x 3,002 = ($4.34 - $0.73) x 3,002 = $3.61 x 3,002 = $10,837.22
Change in average annual earnings due to the changes in both real hourly earnings and annual hours worked (i.e., the interaction
effect):
((Average real hourly earnings2010 - Average real hourly earnings1979)) -
(Average real hourly earnings1993 - Average real hourly earnings1992)) x
(Average annual hours worked2010 - Average annual hours worked1979)
(($23.59 - $19.25) - ($20.57- $19.84)) x ( 2,882 - 3,002 ) =
($4.34 - $0.73) x -120 =
$3.61 x -120 = - $433.20
Decomposition of the change in average annual earnings due to the changes in real hourly earnings and average annual hours
worked. One-half of the interaction effect is assigned to the change in real hourly earnings and one-half is assigned to the change
in annual hours worked:
Change due to the change in average real hourly earnings:
$10,837.22 - $216.60 = $10,620.62
Change due to the change in average annual hours worked:
-$2,310.00 - $216.60 = -$2,526.60
Total change in average total earnings:
$8,094.02

The change in average total earnings of $8,094.02 rounds to $8,090, which is shown in Table 2.
Gini Coefficient
This report uses the Gini coefficient to analyze changes in the distribution of family income. The
Gini coefficient ranges from 0 to 1, with a higher coefficient indicating greater inequality.
Because of topcoding, the Gini coefficient may understate the degree of family inequality. In
addition, changes in family size and composition may affect family income. In this report, the
calculation of the Gini coefficient adjusts real family income using an equivalence scale from the
U.S. Census Bureau. The scale accounts for the different needs of adults and children and the
economies of scale of living in a larger family. The equivalence scale assumes that, on average,
children consume less than adults and that, as family size increases, expenses do not increase at
the same rate. The scale also assumes that for a first child, the increase in expenses is greater for a
single parent than for two adults.22

22 Carmen DeNavas-Walt, Bernadette D. Proctor, and Jessica Smith, Income, Poverty, and Health Insurance Coverage
in the United States: 2007
, U.S. Census Bureau, P60-235, August 2008, pp. 9-10, available at http://www.census.gov/
prod/2008pubs/p60-235.pdf.
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The Trend in Family Income from 1979 to 2010

The scale used by the Census Bureau divides family income by (A + PC)F, where A represents the
number of adults in a family, C represents the number of children, P represents the adult
equivalent of one child, and F is an economy of scale factor. For single parents, the scale is (A +
0.8 + 0.5*C)0.7, where 0.8 is the adult equivalent of the first child and 0.5*C represents each
additional child. For other families, the scale is (A + 0.5*C)0.7.23 In calculating equivalence-
adjusted income, family members who are 18 and over are counted as adults. Persons under 18
are counted as children, unless they are married, parents, or living on their own, in which case
they are counted as adults.
Table A-3 illustrates how the equivalence scale adjusts family income for differences in family
size and composition. The examples include an individual with no children, a family with one
adult (e.g., a single parent) and either one or two children, a family with two adults (e.g., a
married couple) and either one or two children, and a family of three adults and either one or two
children. First, the above scales are used to calculate the values in column 3. Next, all values are
divided by 2.158 (row 5, column 3), which sets the scale for a two-adult, two-child family to
1.000. The Gini coefficient is calculated using family income divided by the values shown in
column 4.
Table A-3. Illustration of Equivalence Scale
Number of
Number of
Calculated
Calculated Value Standardized to a Family
Adults
Children
Value
of Two Adults and Two Children
(1)
(2)
(3)
(4)
1 0 1.000
0.463
1 1 1.509
0.699
1 2 1.791
0.830
2 1 1.899
0.880
2 2 2.158
1.000
3 1 2.404
1.114
3 2 2.639
1.223


23 Kathleen Short, Experimental Poverty Measures: 1999, U.S. Census Bureau, P60-216, October 2001, pp. A-1 to A-2,
available at http://www.census.gov/prod/2001pubs/p60-216.pdf.
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Table A-4. Average Real Income: All Families and Married Couples, 1979 to 2010
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Real Income
All Families
Average
$60,094 $57,896 $56,575 $56,361 $56,410 $57,970 $59,667 $62,021 $63,373 $64,064 $65,261 $63,375 $62,212 $62,336 $64,646 $66,313 $66,786 $68,331
Lowest quintile
15,038 14,058 13,208 12,410 11,979
12,200
12,686
12,789
12,944
13,118 13,488
12,939
12,615
12,119
11,915
12,359
12,726
12,972
Second quintile
34,435 32,832 31,420 30,644 30,201
30,870
31,630
32,510
32,959
33,264 33,649
32,601
31,824
31,102
30,632
31,247
31,973
32,464
Middle quintile
52,218 50,341 49,062 47,946 47,826
48,917
50,009
51,834
52,774
53,003 53,234
51,746
51,105
50,798
49,946
51,023
51,802
52,460
Next-to-highest
quintile
72,503 70,471 69,360 68,734 69,230
71,233
72,518
75,078
76,723
77,135 77,795
75,977
75,326
75,615
75,641
77,143
77,895
79,050
81st – 95th percentiles 104,666 102,378 101,086 101,979 102,754 105,943 108,317 112,439 114,964 116,404 118,402 115,707 114,624 114,961 117,811 120,388 121,539 123,509
Top 5%
191,046 179,918 176,001 182,321 182,968 188,670 200,965 214,216 220,941 225,872 237,307 227,209 216,820 223,225 266,829 277,957 273,461 288,194

Married Couples
Average
73,163 70,820 69,634 69,115 69,616
72,287
74,507
77,826
79,908
80,893 82,960
81,134
80,112
81,053
84,945
87,467
88,174
90,242
Lowest quintile
26,487 25,379 24,058 22,296 22,075
22,985
23,375
24,586
25,254
25,583 25,923
25,536
25,056
24,664
24,189
25,055
25,823
26,345
Next-to-lowest
quintile
48,778 47,052 45,666 43,843 44,058
45,713
46,388
48,497
49,837
50,092 50,746
49,899
49,324
49,702
48,735
50,332
51,362
52,383
Middle quintile
65,111 63,311 62,420 60,940 61,437
63,904
65,068
67,483
69,372
69,836 70,841
69,504
69,375
70,217
70,066
71,711
72,688
74,076
Next-to-highest
quintile
84,283 82,809 81,972 81,624 82,381
85,702
87,647
90,690
93,098
94,147 95,679
94,101
93,762
94,272
96,083
97,921
99,209 100,373
81st – 95th percentiles 117,986 115,633 114,059 115,560 117,097 121,068 124,257 129,532 132,413 135,037 138,323 135,917 134,805 136,256 142,096 147,661 145,818 148,972
Top 5%
210,615 195,237 193,996 200,739 201,075 209,153 227,394 242,788 250,592 253,995 271,420 258,688 247,519 256,718 316,153 326,158 329,341 345,069
CRS-28

.

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Real Income
All Families
Average

$70,564 $72,669 $73,361 $75,558
$75,539
$74,000
$73,528
$72,979 $73,615
$74,884
$73,426
$71,429
$70,374
$68,599
Lowest
quintile
13,306 13,950 14,385 14,779
14,467
14,163
13,639
13,614 13,527
13,945
13,703
13,055
12,271
11,688
Next-to-lowest
33,156 34,672 35,425 35,488
35,079
34,473
33,848
33,453 33,495
33,960
33,739
32,199
30,854
29,924
quintile
Middle
quintile
53,845 55,980 57,126 57,172
56,539
55,757
55,237
54,578 54,754
55,099
55,048
53,111
51,687
50,558
Next-to-highest
81,396 84,239 86,878 86,727
86,436
85,468
85,527
84,214 84,391
85,621
85,376
82,710
81,345
80,220
quintile
81st – 95th
percentiles 128,293 132,114 137,160 137,001
137,097
135,273
136,291
134,764 136,134
138,102
136,788
133,755
132,667
130,803
Top
5%
299,537 301,628 280,384 323,428
329,333
314,633
308,652
311,807 319,119
328,778
306,606
302,963
304,778
289,934

Married Couples
Average
93,503
96,693
97,394
101,927
101,603
100,478
100,394
100,233
101,022
103,754
102,035
99,172
97,611
95,666
Lowest
quintile
27,365 27,831 29,114 29,765
29,277
28,727
28,363
28,045 28,679
29,346
29,325
27,372
25,705
24,934
Next-to-lowest
54,100 55,816 57,506 58,145
57,775
57,377
56,805
56,829 56,963
57,221
58,285
55,559
53,379
52,656
quintile
Middle
quintile
75,944 78,577 81,493 82,166
81,870
81,921
81,821
81,321 81,015
82,382
83,227
80,029
78,204
77,938
Next-to-highest
103,934 108,085 111,682 112,429
112,432
111,867
113,144
112,334 112,478
114,996
114,713
111,439
110,168
109,528
quintile
81st – 95th
percentiles 154,672 160,058 166,970 168,571
168,354
167,612
168,584
168,439 170,707
173,720
171,502
168,932
167,045
165,785
Top
5%
360,288 372,374 327,721 402,698
401,418
387,085
381,362
385,027 391,660
418,018
383,843
378,782
381,198
355,643
CRS-29

.

Dollar Change
Percent Change
1979-1989 1989-2000 2000-2007 2007-2010 1979-2010 1979-1989 1989-2000 2000-2007 2007-2010 1979-2010
Real Earnings
All Families
Averagea
$5,167 $7,987 -$2,132 -$4,827 $6,195 8.6% 12.4% -2.8% -6.6% 9.8%
Lowest
quintile
-1,550 1,291 -1,076 -2,015 -3,350
-10.3% 9.6% -7.3% -14.7% -22.3%
Next-to-lowest
quintile
-786 1,839 -1,749 -3,815 -4,511 -2.3% 5.5% -4.9% -11.3% -13.1%
Middle
quintile
1,016 3,938 -2,124 -4,490 -1,660 1.9% 7.4% -3.7% -8.2% -3.2%
Next-to-highest
quintile
5,292 8,932 -1,351 -5,156 7,717 7.3% 11.5% -1.6% -6.0% 10.6%
81st – 95th
percentiles
13,736 18,599 -213 -5,985 26,137
13.1% 15.7% -0.2% -4.4% 25.0%
Top 5%a
46,261 42,517 -16,822 -16,672 55,284 24.2% 15.3% -5.2% -5.4% 25.5%

Married Couples
Averagea

9,797 15,075 108 -6,369 18,611 13.4% 17.7% 0.1% -6.2% 23.4%
Lowest
quintile
-564 3,842 -440 -4,391 -1,553 -2.1% 14.8% -1.5% -15.0% -5.9%
Next-to-lowest
quintile
1,968 7,399 140 -5,629 3,878 4.0% 14.6% 0.2% -9.7% 8.0%
Middle
quintile
5,730 11,325 1,061 -5,289 12,827 8.8% 16.0% 1.3% -6.4% 19.7%
Next-to-highest
quintile
11,396 16,750 2,284 -5,185 25,245
13.5% 17.5% 2.0% -4.5% 30.0%
81st – 95th
percentiles
20,337 30,248 2,931 -5,717 47,799
17.2% 21.9% 1.7% -3.3% 40.5%
Top 5%a
60,805 71,843 -18,855 -28,200 85,593 28.9% 22.0% -4.7% -7.3% 34.4%
Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the Current Population Survey (CPS).
Notes: All income amounts are in 2010 dollars. Estimates are for families that reported income and were headed by persons 22 to 62 years of age.
a. Because of a change in topcoding, the change in average income for all families and the change in average income for the top 5% of families do not include the change in
income from 1992 to 1993.


CRS-30

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The Trend in Family Income from 1979 to 2010

Table A-5. Gini Coefficient: All Families and Married Couples,
1979 to 2010
Year
All Families
Married Couples
2010
0.44465
0.40431
2009
0.44488
0.40866
2008
0.43629
0.40366
2007
0.43178
0.39763
2006
0.43797
0.40823
2005
0.43746
0.40158
2004
0.43478
0.40241
2003
0.43450
0.40125
2002
0.43335
0.40076
2001
0.43685
0.40176
2000
0.42915
0.40227
1999
0.41948
0.38306
1998
0.42812
0.39880
1997
0.43297
0.39481
1996
0.43144
0.39267
1995
0.42555
0.38817
1994
0.43084
0.39442
1993
0.43028
0.39386
1992
0.40448
0.36479
1991
0.39942
0.36152
1990
0.40136
0.36369
1989
0.40187
0.36655
1988
0.39834
0.35701
1987
0.39340
0.35375
1986
0.39302
0.35584
1985
0.38999
0.35585
1984
0.38699
0.34653
1983
0.38651
0.34641
1982
0.38133
0.34407
1981
0.37030
0.33010
1980
0.36190
0.32290
1979
0.35764
0.32267
Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the Current
Population Survey (CPS).
Note: Estimates are for families that reported income and were headed by persons 22 to 62 years of age.

Congressional Research Service
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Table A-6. Average Real Family Earnings Per Family Hour Worked: All Families and Married Couples, 1979-2010
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Real Earnings
All Families
Average
$19.25 $18.88 $18.68 $18.81 $18.78 $18.75 $19.23 $19.78 $19.90 $20.10 $20.20 $19.75 $19.66 $19.84 $20.57 $20.94 $20.85 $21.28
Lowest
quintile
8.05 7.74 7.39 7.27
7.01
7.00
7.21
7.31
7.34
7.42 7.47 7.38
7.30
7.06
6.93
7.12
7.28
7.59
Next-to-lowest
quintile 12.92 12.53 12.15 11.86
11.74
11.63
11.85
12.07
12.10
12.09 12.17 11.88
11.87
11.65
11.40
11.56
11.80
12.11
Middle
quintile
16.44 16.21 16.06 15.73
15.66
15.54
15.79
16.23
16.17
16.35 16.06 15.64
15.58
15.68
15.31
15.57
15.51
15.73
Next-to-highest
quintile 19.86 19.41 19.15 19.26
19.09
19.39
19.56
19.87
20.17
20.03 20.06 19.63
19.47
19.52
19.41
19.61
19.76
19.78
81st – 95th
percentiles 23.66 23.22 23.34 23.55
23.76
24.04
24.49
25.18
25.47
25.64 25.88 25.43
25.57
25.64
25.83
26.49
26.68
26.94
Top
5%
38.41 37.56 36.30 37.75
37.00
36.73
40.47
42.36
42.35
45.22 47.68 45.54
43.98
45.39
57.22
59.52
56.57
59.59

Married Couples
Average

20.14 19.70 19.49 19.59
19.50
19.59
20.16
20.75
20.90
21.08 21.25 20.74
20.66
20.95
21.93
22.34
22.29
22.64
Lowest
quintile
9.99 9.66 9.22 8.75
8.68
8.64
8.77
9.16
9.27
9.20 9.10 9.04
9.14
8.90
8.76
8.97
9.20
9.55
Next-to-lowest
quintile 14.88 14.62 14.31 13.83
13.78
13.83
13.83
14.23
14.27
14.33 14.17 13.77
13.67
13.74
13.31
13.74
13.87
13.98
Middle
quintile
18.37 17.80 17.62 17.38
17.29
17.39
17.60
17.85
18.12
18.06 17.82 17.56
17.48
17.62
17.45
17.63
17.77
17.96
Next-to-highest
quintile 20.91 20.70 20.55 20.54
20.37
20.87
21.28
21.55
21.96
21.75 22.25 21.62
21.54
21.73
22.01
22.37
22.29
22.22
81st – 95th
percentiles 25.05 24.28 24.75 25.29
25.28
25.88
26.60
27.48
27.56
28.30 28.42 28.06
27.85
28.22
28.88
29.43
30.10
30.50
Top
5%
43.28 42.86 39.65 41.15
39.99
39.68
44.24
47.24
47.23
49.57 54.49 51.99
51.00
54.21
71.67
75.10
68.49
70.62
CRS-32

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1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Real Earnings
All Families
Average

$21.82 $22.36 $22.27
$23.37
$23.86
$23.87
$23.85
$23.52 $23.55
$23.79
$23.54
$23.42
$23.88
$23.59
Lowest
quintile
7.63 7.84 7.93
8.21
8.20
8.20
8.05
8.01 7.99
8.17
8.24
8.02
7.89
7.74
Next-to-lowest
quintile 12.47 12.81 13.04
13.20
13.28
13.34
13.09
12.99 12.88
13.09
13.22
12.80
12.59
12.36
Middle
quintile
16.10 16.74 16.97
17.16
17.13
17.27
17.22
16.91 16.96
16.92
17.03
16.60
16.88
16.71
Next-to-highest
quintile 20.41 21.05 21.49
21.66
21.81
22.03
22.09
21.69 21.53
21.72
21.80
21.45
21.64
21.50
81st – 95th
percentiles 27.64 28.57 29.16
29.92
30.54
30.40
30.74
30.22 30.26
30.84
30.56
30.25
30.65
30.21
Top
5%
61.59 61.68 57.99
68.70
73.23
69.74
68.02
68.30 69.21
71.03
65.24
67.52
66.75
63.97

Married Couples
Average

23.24 23.99 23.79
25.27
25.65
25.87
25.87
25.70 25.62
26.10
25.78
25.66
26.17
25.83
Lowest quintile
9.70
9.88
9.98
10.18
10.36
10.41
10.33
10.22
10.26
10.48
10.69
10.32
10.40
10.30
Next-to-lowest
quintile 14.39 14.74 15.04
15.20
15.29
15.44
15.34
15.37 15.27
15.16
15.49
14.97
15.10
14.98
Middle
quintile
18.22 18.70 19.19
19.49
19.45
19.81
19.87
19.68 19.55
19.71
19.79
19.42
19.44
19.51
Next-to-highest
quintile 23.10 23.84 24.31
24.64
25.20
25.46
25.51
25.30 25.19
25.53
25.52
25.02
25.57
25.38
81st – 95th
percentiles 31.32 32.53 33.28
34.30
34.66
35.11
35.85
35.35 35.52
36.09
35.73
35.73
35.80
35.85
Top
5%
74.01 76.30 68.21
89.12
90.71
86.96
82.31
83.18 83.23
90.53
81.12
83.55
83.98
77.83
CRS-33

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Dollar Change
Percent Change
1979-1989 1989-2000 2000-2007 2007-2010 1979-2010 1979-1989 1989-2000 2000-2007 2007-2010 1979-2010
Real Earnings
All Families
Averagea
$0.95 $2.44 $0.17 $0.05 $3.61 4.9% 11.8% 0.7% 0.2% 17.7%
Lowest
quintile
-0.58 0.74 0.03 -0.50 -0.31 -7.2% 9.9% 0.4% -6.1% -3.9%
Next-to-lowest
quintile
-0.75 1.03 0.02 -0.86 -0.56 -5.8% 8.5% 0.2% -6.5% -4.3%
Middle
quintile
-0.38 1.10 -0.13 -0.32 0.27 -2.3% 6.8% -0.8% -1.9% 1.6%
Next-to-highest
quintile
0.20 1.60 0.14 -0.30 1.64 1.0% 8.0% 0.6% -1.4% 8.3%
81st – 95th
percentiles 2.22 4.04 0.64 -0.35 6.55 9.4%
15.6% 2.1% -1.1%
27.7%
Top 5%a
9.27 9.19 -3.46 -1.27 13.73 24.1% 15.3% -5.0% -1.9% 30.0%

Married Couples
Averagea

1.11 3.04 0.51 0.05 4.71 5.5%
13.8% 2.0% 0.2%
21.8%
Lowest
quintile
-0.89 1.08 0.51 -0.39 0.31 -8.9%
11.9% 5.0% -3.6% 3.1%
Next-to-lowest
quintile
-0.71 1.03 0.29 -0.51 0.10 -4.8% 7.3% 1.9% -3.3% 0.7%
Middle
quintile
-0.55 1.67 0.30 -0.28 1.14 -3.0% 9.4% 1.5% -1.4% 6.2%
Next-to-highest
quintile
1.34 2.39 0.88 -0.14 4.47 6.4%
10.7% 3.6% -0.5%
21.4%
81st – 95th
percentiles 3.37 5.88 1.43 0.12 10.80
13.5%
20.7% 4.2% 0.3%
43.1%
Top 5%a
11.21 17.17 -8.00 -3.29 17.09 25.9% 23.8% -9.0% -4.1% 33.8%
Source: CRS analysis of data from the Annual Social and Economic (ASEC) supplement to the Current Population Survey (CPS).
Notes: All income amounts are in 2010 dollars. Estimates are for families that reported income and were headed by persons 22 to 62 years of age.
a. Because of a change in topcoding, the change in average hourly earnings for all families and the change in average hourly earnings for the top 5% of families do not
include the change in earnings from 1992 to 1993.


CRS-34

.
The Trend in Family Income from 1979 to 2010



Author Contact Information

Gerald Mayer

Analyst in Labor Policy
gmayer@crs.loc.gov, 7-7815


Congressional Research Service
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