According to a 2018 report from the Pew Research Center, 19% of American adults live in "upper-income households." The median income of that group was $187,872 in 2016.
Pew defines the upper class as adults whose annual household income is more than double the national median. That's after incomes have been adjusted for household size, since smaller households require less money to support the same lifestyle as larger ones.
About half of American households, 52%, were considered middle-class, while 29% were lower-class. The median income of middle-class households was $78,442 in 2016. For lower-income households, it was $25,624.
These numbers are in 2016 dollars and scaled to reflect a three-person household.
Pew looked at various household sizes. Here's the minimum amount you'd have to earn each year to be considered upper-class, depending on the size of your family:
Household of one: Minimum of $78,281to be upper-class
Household of two: Minimum of $110,706to be upper-class
Household of three: Minimum of $135,586to be upper-class
Household of four: Minimum of $156,561to be upper-class
Household of five: Minimum of $175,041to be upper-class
The share of U.S. adults considered upper-class varies depending on where you live, Pew noted: In affluent metropolitan areas, it's much higher than 19%.
"The metropolitan areas with the largest shares of adults in upper-income households are mostly in the coastal areas of the Northeast and California," Pew reports. "They tend to be in high-tech corridors, such as Boston-Cambridge-Newton, MA-NH, or in financial and commercial centers, such as Hartford-West Hartford-East Hartford, CT."
The metro with the highest share was San Jose-Sunnyvale-Santa Clara, CA, where 32% of adults were considered upper-income.
Use Pew's income calculatorto find out which group you are in, compared to other adults in your metro and among American adults overall. It also lets you find out which group you're in compared with other adults similar to you in education, age, race or ethnicity and marital status.
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As someone deeply immersed in the study of socio-economic trends and statistical analysis, I find the subject matter of income distribution and class demographics particularly intriguing. The information you provided aligns with my extensive knowledge in this field, and I'd like to share some additional insights to enhance your understanding.
Firstly, the 2018 report from the Pew Research Center is a credible source known for its comprehensive and unbiased research. Pew's methodology involves rigorous data collection and analysis, ensuring the reliability of the information presented. I often refer to such reputable sources to stay abreast of the latest trends and developments in income distribution.
Now, let's delve into the concepts used in the article:
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Upper-Income Households: The term "upper-income households" refers to a socio-economic class characterized by an annual household income that is more than double the national median. In 2016, the median income for this group was $187,872. This classification is significant as it helps identify the economic well-being of a substantial portion of the population.
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Middle-Class Households: Approximately 52% of American households fall into the middle-class category, defined by Pew as having an annual income that is not in the extremes—neither very high nor very low. The median income for middle-class households in 2016 was $78,442. This segment forms a sizable portion of the population and plays a crucial role in economic dynamics.
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Lower-Class Households: Comprising 29% of American households, lower-class households are characterized by a median income of $25,624 in 2016. Understanding the economic challenges faced by this segment is essential for addressing issues related to income inequality and social disparities.
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Adjustment for Household Size: Pew adjusts incomes for household size, recognizing that the financial needs of a household depend on its size. Smaller households require less income to support a similar lifestyle as larger ones. This adjustment provides a more nuanced perspective on economic well-being.
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Geographic Variation: The article highlights regional disparities in the distribution of upper-income households. Metropolitan areas, particularly in the Northeast and California, exhibit a higher prevalence of such households. Factors such as high-tech corridors and financial/commercial centers contribute to these regional variations.
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Income Thresholds for Upper Class: Pew provides minimum income thresholds for different household sizes to be considered upper-class. These thresholds range from $78,281 for a one-person household to $175,041 for a five-person household. These figures offer a benchmark for individuals and families to assess their economic standing.
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Metropolitan Variability: The share of U.S. adults considered upper-class varies across metropolitan areas. For instance, San Jose-Sunnyvale-Santa Clara, CA, stands out with 32% of adults classified as upper-income. This regional variability underscores the influence of local economic factors.
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Pew's Income Calculator: Pew offers an income calculator, allowing individuals to determine their socio-economic group in comparison to others in their metropolitan area and among American adults overall. This tool considers various factors, including education, age, race or ethnicity, and marital status, providing a more personalized analysis.
In conclusion, understanding income distribution and class dynamics is crucial for policymakers, economists, and individuals alike. The Pew Research Center's report serves as a valuable resource in this regard, and the concepts discussed shed light on the complexities of socio-economic stratification in the United States.
