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. |
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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: US Income
Famous quotes containing the word income:
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—Logan Pearsall Smith (1865–1946)
“Happy are those who find wisdom, and those who get understanding, for her income is better than silver, and her revenue better than gold. She is more precious than jewels, and nothing you desire can compare with her. Long life is in her right hand; in her left hand are riches and honor. Her ways are ways of pleasantness, and all her paths are peace. She is a tree of life to those who lay hold of her; those who hold her fast are called happy.”
—Bible: Hebrew, Proverbs 3:13-18.