Bottom 20 of households earn less than 4 of income if

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Bottom 20% of households earn less than 4% of income. If each quintile included the same number of people working same number of hours, top 20% would earn 36% of income, bottom 20% would earn 12% of income. Chapter 13: Labor Markets, Poverty, and Income Distribution D. Determinants of wages E. Labor market imperfections F. Discrimination G. Measuring inequality H. Trends in inequality
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3 By almost every measure, income inequality in the United States has increased over the last 40 years Source: Federal Reserve Bank of San Francisco Economic Letter, December 2006 Wages of those at the top of the earnings distribution have grown faster than those at the bottom. Source: Autor, Katz, and Kearney, NBER Working Paper, Aug. 2004 This increase in wage inequality is closely related to an increase in the difference in wages between college- educated and high-school-educated workers. Source: Autor, Katz, and Kearney, NBER Working Paper, Aug. 2004
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4 Financial industry is a key factor in rising inequality in New York City Source: New York Times Summary: Over the last 40 years, the premium for those with the best education, skills and opportunities has increased tremendously Wage growth has been extremely slow for those in the lower half of the income distribution
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