Mean Income
Another common measurement of personal income is the mean household income. Unlike the median household income, which divides all households in two halves, the mean income is the average income earned by American households. In the case of mean income, the income of all households is divided by the number of all households. The mean income is usually more affected by the relatively unequal distribution of income which tilts towards the top. As a result, the mean tends to be higher than the median income, with the top earning households boosting it. Overall, the mean household income in the United States, according to the US Census Bureau 2004 Economic Survey, was $60,528, or $17,210 (39.73%) higher than the median household income.
"Median income is the amount which divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount. Mean income (average) is the amount obtained by dividing the total aggregate income of a group by the number of units in that group. The means and medians for households and families are based on all households and families. Means and medians for people are based on people 15 years old and over with income."-US Census Bureau, Frequently Asked Question, published by First Gov.
The US Census Bureau also provides a breakdown by self-identified ethnic groups as follows (as of March 2005):
| Ethnic Category | Mean Household Income |
|---|---|
| Asian alone | $76,747 |
| White alone | $65,317 |
| Hispanic or Latino | $45,871 |
| Black | $40,685 |
Read more about this topic: Household Income In The United States
Famous quotes containing the word income:
“We commonly say that the rich man can speak the truth, can afford honesty, can afford independence of opinion and action;—and that is the theory of nobility. But it is the rich man in a true sense, that is to say, not the man of large income and large expenditure, but solely the man whose outlay is less than his income and is steadily kept so.”
—Ralph Waldo Emerson (1803–1882)
“The secret of success lies never in the amount of money, but in the relation of income to outgo.”
—Ralph Waldo Emerson (1803–1882)