Income inequality in the United States

Income inequality in the United States has increased significantly since the 1970s after several decades of stability, meaning the share of the nation's income received by higher income households has increased. Sometimes this is called a "pay gap". Usually males are paid higher than females which has caused protest.

Income Inequality In The United States Media

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  Income before (green) and after (pink) taxes and transfer payments for different income groups starting with the lowest quintile

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  It's not just the top 1% that have disproportionate gains. Ratio for Each Income Percentile to Median Income In the U.S. Since 1970. The plot shows the increase in the relative gains of those above the median versus those below the median with the largest gains for those in the highest percentile.Finally, in 2023 the steepness of the curve decreased (red line)

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  US federal minimum wage if it had kept pace with productivity. Also, the real minimum wage.

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  Share of U.S. pre-tax income earned by the top 1% (blue) and top 0.1% (red) of households 1913–2016

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  This CBO chart shows the cumulative increase in real household income by income quintile from 1979 to 2016, for income before taxes & transfers and after-tax income. It shows that even lower income quintiles still had sizable gains in income, although not as great as the top quintile.

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  U.S. Pre-Tax Income Share Top 1 Pct and 0.1 Pct 1913 to 2016

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  CBO data indicates that real (inflation-adjusted) household income increased significantly after-taxes and transfers from 1979 to 2016 across all income quintiles. However, the top 1% income fell from 2007 to 2016, due to both the Great Recession and tax hikes on upper incomes during the Obama Administration.

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  Share of U.S. income earned by top 1% households in 1979 (blue), 2007 (orange), and 2016 (green) (CBO data). The first date 1979 reflects the more egalitarian pre-1980 period, 2007 was the peak inequality of the post-1980 period, and the 2016 number reflects the Obama tax increases on the top 1% along with residual effects of the Great Recession.