Lowest 20% 3.4%

8.7%

14.7%

23.2%

50.1%

Second 20%

Middle 20%

Fourth 20%

Highest 20%

Lowest 20% 3.4%

8.7%

14.7%

23.2%

50.1%

Second 20%

Middle 20%

Fourth 20%

Highest 20%

The Public and PrivaTe MaTerial World 77

F i g u r e 4 . 6

P e r s o n a l D i s t r i b u t i o n o f I n c o m e b y P e r c e n t i l e G r o u p

The personal distribution of household income describes the way income is divided into groups among households in this country. This is normally analyzed by dividing all U.S. households in 5 equal groupings of 20 percent each. If income were evenly distributed, each 20 percent segment would receive exactly 20 percent of income. Figure 4.6 shows that this is not the case. According to recent data, the top 20 percent received more than 50 percent of the total income and the bottom 20 percent received only 3.4 percent of the total income.

You will see further discussion of this important question in the PowerPoint presentation for this lesson.

W h a t D e t e r m i n e s Yo u r I n c o m e ?

Many factors determine an individual’s income including education, age, skills, inheri- tance and location. However, the most important factors are education, experience and training. According to the U.S. Census Bureau, workers in 2006 with a high school education made $28,290 median income, while workers with a bachelor’s or master’s

Personal distribution of income by Percentile Group Source: U .S. Census Bureau, Census 2000 Summary (www.census.gov/2000)

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