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Extra info for American Incomes: Demographics of Who Has Money

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All but one age group saw its median income decline between 2000 and 2002 as the recession of 2001 cut jobs and incomes. Median household income fell 3 percent for the average household during those years. 8 percent after adjusting for inflation. Behind the rise for this age group was the growing labor force participation rate among older men. Although median household incomes were lower in 2002 than in 2000, they were still significantly above the levels of 1980 and 1990. The youngest householders experienced the biggest gains between 1990 and 2002.

People in the peak earning age group of 35 to 54 head 59 percent of households in the highest income quintile. And 78 percent have at least two earners. Households in the top 5 percent of the income distribution are even more likely to be headed by married couples and 35-to-54-year-olds. Looking at the distribution of households by income quintile confirms these findings. Among married couples, 31 percent are in the top fifth of the income distribution compared with only 7 percent of female-headed families.

The median income of male-headed families with children fell 4 percent between 1990 and 2002, after adjusting for inflation. ■ As boomers become dual-income empty-nesters in their peak earning years during the next ten years, the incomes of families without children are likely to grow faster than those of families with children. 4 Note: (–) means data are not available. htm; calculations by New Strategist AMERICAN INCOMES: Demographics of Who Has Money 29 Working Wives Have Kept Families Afloat Incomes have fallen among married couples with nonworking wives.

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