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On Income Inequality

Posted By Don Boudreaux On January 8, 2013 @ 4:14 pm In Inequality | Comments Disabled

This post by Carpe Diem’s Mark Perry is a must-read [1].  It’s fact-filled.  A slice:

Bottom Line: Household demographics, including the average number of earners per household and the marital status, age, and education of householders are all very highly correlated with household income.  Specifically, high-income households have a greater average number of income-earners than households in lower-income quintiles, and individuals in high income households are far more likely than individuals in low-income households to be well-educated, married, working full-time, and in their prime earning years.  In contrast, individuals in lower-income households are far more likely than their counterparts in higher-income households to be less-educated, working part-time, either very young (under 35 years) or very old (over 65 years), and living in single-parent households.

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[1] This post by Carpe Diem’s Mark Perry is a must-read: http://www.aei-ideas.org/2013/01/income-inequality-can-be-explained-by-demographics-and-because-the-demographics-change-theres-income-mobility/

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