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U.S. income distribution by quintile appears in [link] . In 2011, for example, the bottom quintile of the income distribution received 3.2% of income; the second quintile received 8.4%; the third quintile, 14.3%; the fourth quintile, 23.0%; and the top quintile, 51.14%. The final column of [link] shows what share of income went to households in the top 5% of the income distribution: 22.3% in 2011. Over time, from the late 1960s to the early 1980s, the top fifth of the income distribution typically received between about 43% to 44% of all income. The share of income that the top fifth received then begins to rise. According to the Census Bureau, much of this increase in the share of income going to the top fifth can be traced to an increase in the share of income going to the top 5%. The quintile measure shows how income inequality has increased in recent decades.

(Source: U.S. Census Bureau, Table 2)
Share of aggregate income received by each fifth and top 5% of households, 1967–2013
Year Lowest Quintile Second Quintile Third Quintile Fourth Quintile Highest Quintile Top 5%
1967 4.0 10.8 17.3 24.2 43.6 17.2
1970 4.1 10.8 17.4 24.5 43.3 16.6
1975 4.3 10.4 17.0 24.7 43.6 16.5
1980 4.2 10.2 16.8 24.7 44.1 16.5
1985 3.9 9.8 16.2 24.4 45.6 17.6
1990 3.8 9.6 15.9 24.0 46.6 18.5
1995 3.7 9.1 15.2 23.3 48.7 21.0
2000 3.6 8.9 14.8 23.0 49.8 22.1
2005 3.4 8.6 14.6 23.0 50.4 22.2
2010 3.3 8.5 14.6 23.4 50.3 21.3
2013 3.2 8.4 14.4 23.0 51 22.2

It can also be useful to divide the income distribution in ways other than quintiles; for example, into tenths or even into percentiles (that is, hundredths). A more detailed breakdown can provide additional insights. For example, the last column of [link] shows the income received by the top 5% percent of the income distribution. Between 1980 and 2013, the share of income going to the top 5% increased by 5.7 percentage points (from 16.5% in 1980 to 22.2% in 2013). From 1980 to 2013 the share of income going to the top quintile increased by 7.0 percentage points (from 44.1% in 1980 to 51% in 2013). Thus, the top 20% of householders (the fifth quintile) received over half (51%) of all the income in the United States in 2013.

Lorenz curve

The data on income inequality can be presented in various ways. For example, you could draw a bar graph that showed the share of income going to each fifth of the income distribution. [link] presents an alternative way of showing inequality data in what is called a Lorenz curve    . The Lorenz curve shows the cumulative share of population on the horizontal axis and the cumulative percentage of total income received on the vertical axis.

The lorenz curve

The graph shows an upward sloping dashed plum line labeled Perfect equality extending from the origin to the point (100, 100%). Beneath the dashed line are two upward sloping curves. The one closest to the dashed line is labeled 1980, and the line further from the dashed line is labeled 2011.
A Lorenz curve graphs the cumulative shares of income received by everyone up to a certain quintile. The income distribution in 1980 was closer to the perfect equality line than the income distribution in 2011—that is, the U.S. income distribution became more unequal over time.

Every Lorenz curve diagram begins with a line sloping up at a 45-degree angle, shown as a dashed line in [link] . The points along this line show what perfect equality of the income distribution looks like. It would mean, for example, that the bottom 20% of the income distribution receives 20% of the total income, the bottom 40% gets 40% of total income, and so on. The other lines reflect actual U.S. data on inequality for 1980 and 2011.

Questions & Answers

what happens for inferior goods, as the price rises?
Esihle Reply
the demand of inferior will decrease while the price increases, inverse relationship
Chilly
Sorry chilly is that not the relationship between income and inferior good? which have an inverse relationship.
Bakary
Agreed with Bakary
Ghulam
the demand of the goods will not remain the same as price is the determining factor in the market
dibi
if the price of one of the complementary good increase the demand for other decrease . but what about the price of other good ? will it be constant or change ?
Ghulam
what is economics
Ally Reply
economics is a subject that deals with economic problems like what to produce ,how to produce , poverty, inflation, unemployment
Wani
It can also be define as a science that studies human behavior as a relationship between ends and scarce means which have alternate uses
Bakary
Economics is the study of society's behaviour in relationship to the satisfaction of unlimited wants with limited means.
Lily
Economics is the study of allocating scarce resources in a society to satisfy the need and unlimited wants of the people.
Gutuma
there are 10 000 seats available for the tennis Championships. the price per ticket is fixed by the organisers. the supply of seats is thus? A. completely elastic B. completely inelastic C. elastic D. unitary elastic
Esihle Reply
C?
Paramasivam
is C the answer?
Esihle
Wits
index
I think so.!
Paramasivam
what is right answer?
Paramasivam
exactly what you mean? I can't understood your question.
Sakil
what is the supply of seats? choose from the given options
Esihle
perfect elastic the supply curve will become horizontal
Wani
C. Elastic
Ariel
thank you
Esihle
The convenient notion of utility
Sana Reply
the convenient concept of utility?
Sana
Could you help me with 10 questions
sma
Definition of accounting
Buhari Reply
the convenient concept of utility?
Sana
What's the difference between normative and positive statements?
busywork
Utility is the power/ability of commodity/article to satisfy a need/want.
busywork
when there is a surplus of a product in an unregulated market there is a tendency for proce to rise or price to fall or quantity demand to increase or quantity supplied to increase
Karen Reply
what is oligopoly?
Nurina Reply
oligopoly is a small industry were there are few firms(not more than ten firms) each firms are likely to be aware of the action of the other firms
Wani
what is difference macro economy and microeconomic
Chhaya Reply
macro means large and micro means small in macro economics we study about whole economy and in micro economics we study about individuals like individual consumer
Wani
thank you
Chhaya
Please explain me the concept of elasticity.
Jainal
what is Is corve
Chhaya
In simple terms, elasticity is defined as the responsiveness of one variable to another. That is, how a change in one variable affects other variables. With that in mind, price elasticity of demand measures how a change in the price of a given product affects its demand
Amos
elasticity shows how much one variable change due to change in another variable
Wani
acha what is valuable demand
Waseem
where from u wani ruhee
Waseem
what is the difference between disequilibrium in balance of payment and balance of trade?please.
kekde
sorry
Chhaya
what is Is curve
Chhaya
what
Jamaala
what is utility
Jamaala
Waseem wani from ANANTNAG district
Wani
utility means want satisfying power of a good
Wani
what is different economic growth and development
Chhaya Reply
It's simple growth is an quantitative concept and development is an quantitative concept. Example: Economic growth of particular country (GDP, Percapita Income) Development of that country( Literacy level, Human development and all).
Paramasivam
In other words, you age is growth, it can be measure. How much skills and knowledge that your having this is Development, It cannot be measure.
Paramasivam
In that first reply it's just typing mistake I am sorry, Development is an qualitative concept.
Paramasivam
thanks
Chhaya
your welcome.!
Paramasivam
right PM
Avijit
Hearty thank you sir.,
Paramasivam
Hi, Economist., Greetings of the day., This is Paramasivam P., PhD Research Scholar of Economics from India
Paramasivam Reply
hello
KJ
hello
Paramasivam
Yah thanks to everyone., Greetings of the day.!
Paramasivam
hi sir..
Jainal
Your contents are very helpful
Jainal
explain economic growth
STK Reply
what causes demand pull inflation
STK
what causes demand pull inflation?
STK
It starts with an increase in consumer demand
Lalthansanga
economic growth is the stability of money - when there is stability people will help the economy grow
Heather
What is scarcity
frank Reply
What cause demand pull inflation
Randy Reply
Ok
frank
what is meaning of scarcity in urdu
Aarif Reply
scarcity means that there is limited resources but unlimited wants.
Cabdulahi
thanks
Aarif
What is sunks cost
Atim
cost that have already incurred by a firm and cannot be recovered in a future.
Cabdulahi
cost taht cannor be avoided bcz they have already incurred
Mumin
is this in urdu books on mbl of am economice
Arham Reply

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Source:  OpenStax, Microeconomics. OpenStax CNX. Aug 03, 2014 Download for free at http://legacy.cnx.org/content/col11627/1.10
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