Income
Educational attainment is strongly correlated with income in the United States. Although the incomes of both men and women are associated with higher educational attainment (higher incomes for higher educational attainment), the income gap between races and genders remained at each educational level. In 2003 average incomes ranged from $13,459 for a male high-school dropout to $90,761 for a male with an advanced degree. The most significant average income difference was between those who had some college education or an Associates degree and those who had a Bachelor's degree. While the former averaged $31,046 for both sexes the latter averaged $51,194, over $20,000 (64.9%) more.
The second most dramatic difference in average income was between those with a Bachelor's degree with $51,940 and those with an advanced degree who made $72,824, roughly $21,000 (42.2%) more. The least significant difference was between those who had graduated from high school and those who had either some college or an Associates degree. Here the difference was a mere $3,766 or 13.8%. The difference between those with a high school diploma ($30,000) and those who did not complete high school ($18,826) was $8,454 or 45%. Overall, the income in the United States for all sexes, races and levels of educational attainment was $36,308 annually.
Even though African immigrants have higher educational attainment rates than any other group, they were the hardest hit during the most recent recession beginning in 2007. This shows that race and/or ethnicity may play a role in income levels and job selection.
| Criteria | Overall | Less than 9th grade | High school drop-out | High school graduate | Some college | Associates degree | Bachelor's degree | Bachelor's degree or more | Master's degree | Professional degree | Doctorate degree | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Median individual income | Male, age 25+ | $33,517 | $15,461 | $18,990 | $28,763 | $35,073 | $39,015 | $50,916 | $55,751 | $61,698 | $88,530 | $73,853 |
| Female, age 25+ | $19,679 | $9,296 | $10,786 | $15,962 | $21,007 | $24,808 | $31,309 | $35,125 | $41,334 | $48,536 | $53,003 | |
| Median household income | $45,016 | $18,787 | $22,718 | $36,835 | $45,854 | $51,970 | $68,728 | $73,446 | $78,541 | $100,000 | $96,830 | |
SOURCE: US Census Bureau, 2003
The change in median personal and household income since 1991 also varied greatly with educational attainment. While both the overall median personal and household income increased since 1991, this increase did not take place on all levels of educational attainment. The overall income increased over the course of the 1990s, reaching its high in 1999, but has been decreasing ever since. In 1991 the median household income in the US was $40,873 in 2003 dollars, while the median household income in 2003 was $45,016. In 1999, however, the median household income was $46,236, 2.7% higher than today. While this trend held true for all levels of educational attainment the extent of chorinical fluctuations in income were greatly influenced by educational attainment.
Overall the median household and personal income decreased for those with more than a 9th grade education but less than a four-year college degree since 1991. In other words, the median household income decreased for households and individuals at the high school drop-outs and graduate, some-college, and an Associates degree level. Income did, however, increase for those with a Bachelor's degree or more. The following table shows the median household income according to the educational attainment of the householder. All data is in 2003 dollars and only applies to householders whose householder is aged twenty-five or older. The highest and lowest points of the median household income are presented in bold face.
| Year | Overall Median | Less than 9th grade | High school drop-out | High school graduate | Some college | Associates degree | Bachelor's degree | Bachelor's degree or more | Master's degree | Professional degree | Doctorate degree |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1991 | $40,873 | $17,414 | $23,096 | $37,520 | $46,296 | $52,289 | $64,150 | $68,845 | $72,669 | $102,667 | $92,614 |
| 1993 | $40,324 | $17,450 | $22,523 | $35,979 | $44,153 | $49,622 | $64,537 | $70,349 | $75,645 | $109,900 | $93,712 |
| 1995 | $42,235 | $18,031 | $21,933 | $37,609 | $44,537 | $50,485 | $63,357 | $69,584 | $77,865 | $98,302 | $95,899 |
| 1997 | $43,648 | $17,762 | $22,688 | $38,607 | $45,734 | $51,726 | $67,487 | $72,338 | $77,850 | $105,409 | $99,699 |
| 1999 | $46,236 | $19,008 | $23,977 | $39,322 | $48,588 | $54,282 | $70,925 | $76,958 | $82,097 | $110,383 | $107,217 |
| 2001 | $45,300 | $18,830 | $24,162 | $37,468 | $47,605 | $53,166 | $69,796 | $75,116 | $81,993 | $103,918 | $96,442 |
| 2003 | $45,016 | $18,787 | $22,718 | $36,835 | $45,854 | $51,970 | $68,728 | $73,446 | $78,541 | $100,000 | $96,830 |
| Average | $43,376 | $18,183 | $23,013 | $37,620 | $46,109 | $51,934 | $66,997 | $72,376 | $78,094 | $104,368 | $94,487 |
SOURCE: US Census Bureau, 2003
Among the races, educational attainment retains its dramatic effect on average income which varies significantly at each educational level. European Americans (White Americans) had the highest average income at every level of educational attainment. However, the proportion of those having college degrees is greater among Asian Americans than among non-Hispanic whites, and the overall highest average income is found among Asians. All races except Whites ranked last on at least one level with African Americans ranking last on the non-high school, high school and advanced degree level.
Asians were second highest on the college graduate level and had the highest overall income among the general population. They also had the lowest average annual income for those with some college education or an Associates degree. Racial income difference were also significant at every level of educational attainment with the largest racial inequality being between European and African Americans who did not complete high school and those with advanced college degrees.
Overall European Americans with an advanced degree had the highest average annual income with $74,122. Asian Americans had the second highest with $72,852. Hispanics and African Americans had the lowest annual incomes among those with advanced degrees averaging $67,679 and $59,944 annually. The largest racial inequity was between European Americans with a Bachelor's degree who made $53,185 than Hispanics who made $12,263 or 29.9% less with an average annual income of $40,949.
Read more about this topic: Educational Attainment In The United States
Famous quotes containing the word income:
“The question for the country now is how to secure a more equal distribution of property among the people. There can be no republican institutions with vast masses of property permanently in a few hands, and large masses of voters without property.... Let no man get by inheritance, or by will, more than will produce at four per cent interest an income ... of fifteen thousand dollars] per year, or an estate of five hundred thousand dollars.”
—Rutherford Birchard Hayes (1822–1893)
“Strictly speaking, every citizen above a certain level of income is guilty of some offense.”
—Max Frisch (1911–1991)