CEPR - Center for Economic and Policy Research

Multimedia

En Español

Em Português

Other Languages

Home Publications Data Bytes Poverty Bytes New Income Data Shows Rising Inequality

New Income Data Shows Rising Inequality

August 30, 2006 (Poverty Byte)

New Income Data Shows Rising Inequality

By Heather Boushey

August 30, 2006

The release of U.S. Census Bureau income data for 2005 shows a rise in income inequality since the last economic peak. Since 2000, households in the bottom fifth of the income distribution have seen their inflation-adjusted income drop by 5.6 percent and only households in the top fifth have seen their income rise, increasing by 0.8 percent (Figure 1). Black households in the bottom two-fifths of the income distribution have seen their inflation-adjusted income fall by over 10 percent – by 12.3 percent for those in the bottom fifth and 11.4 percent for those in the second fifth.

Figure 1: Growth in Inflation-Adjusted Income, by Income Fifth,
All Households, 2000 - 2005

povbite_060830_1

 

 

 

 

 

 

 

 

 

Figure 2: Growth in Inflation-Adjusted Income, by Income Fifths,
Black and Hispanic Households, 2000 - 2005

povbite_060830_2


Heather Boushey is senior economist at the Center for Economic and Policy Research in Washington, DC
CEPR’s Poverty Byte is published each year upon release of the Census income report. For more information or to subscribe by fax or email contact CEPR at 202-293-5380 ext. 103 or ray at cepr dot net.
 

CEPR.net
donate_new
Combined Federal Campaign #79613

Jobs

Prices

GDP

Latin America

Social Security

Housing

Union Membership

Trade

Profits

CBO

Displaced Workers

Poverty

Productivity