Income Inequality Overview Spring Semester, 2018 Income Distribution Over Time

Civilian Unemployment Rate Current: 4.1%

Labor Force Participation Rate Current: 62.7%

Size of adjusted gross income   All returns 2013 147,351,299 100.0 No adjusted gross income 2,113,013 1.4 $1 under $5,000 10,608,111 7.2 $5,000 under $10,000 12,030,388 8.2 $10,000 under $15,000 12,503,345 8.5 $15,000 under $20,000 11,621,535 7.9 $20,000 under $25,000 10,125,285 6.9 $25,000 under $30,000 8,809,515 6.0 $30,000 under $40,000 14,473,606 9.8 $40,000 under $50,000 11,279,394 7.7 $50,000 under $75,000 19,229,309 13.0 $75,000 under $100,000 12,574,107 $100,000 under $200,000 16,425,446 11.1 $200,000 under $500,000 4,488,110 3.0 $500,000 under $1,000,000 724,251 0.5 $1,000,000 under $1,500,000 156,269 0.1 $1,500,000 under $2,000,000 64,236 [2] $2,000,000 under $5,000,000 91,128 $5,000,000 under $10,000,000 21,412 $10,000,000 or more 12,839

Accumulated from smallest size of adjusted gross income   No adjusted gross income 2013 2,113,013 1.4 $1 under $5,000 10,608,111 7.2 $1 under $10,000 22,638,499 15.4 $1 under $15,000 35,141,844 23.8 $1 under $20,000 46,763,379 31.7 $1 under $25,000 56,888,664 38.6 $1 under $30,000 65,698,179 44.6 $1 under $40,000 80,171,785 54.4 $1 under $50,000 91,451,180 62.1 $1 under $75,000 110,680,489 75.1 $1 under $100,000 123,254,596 83.6 $1 under $200,000 139,680,042 94.8 $1 under $500,000 144,168,152 97.8 $1 under $1,000,000 144,892,403 98.3 $1 under $1,500,000 145,048,672 98.4 $1 under $2,000,000 145,112,908 98.5 $1 under $5,000,000 145,204,036 $1 under $10,000,000 145,225,448 98.6 $1 or more 145,238,287 All returns 147,351,299 100.0

Productivity vs. Real Wages: 1947 – 2012 (From Wikipedia)

https://www.epi.org/publication/understanding-the-historic-divergence-between-productivity-and-a-typical-workers-pay-why-it-matters-and-why-its-real/

Table 1. Real Income Growth by Groups Average Income Real Growth Top 1% Incomes Real Growth Bottom 99% Incomes Real Growth Fraction of total growth (or loss) captured by top 1%   (1) (2) (3) (4) Full period 1993-2015 25.7% 94.5% 14.3% 52% Clinton Expansion 1993-2000 31.5% 98.7% 20.3% 45% 2001 Recession 2000-2002 -11.7% -30.8% -6.5% 57% Bush Expansion 2002-2007 16.1% 61.8% 6.8% 65% Great Recession 2007-2009 -17.4% -36.3% -11.6% 49% Recovery 2009-2015 13.0% 37.4% 7.6% Computations based on family market income including realized capital gains (before individual taxes). Incomes exclude government transfers (such as unemployment insurance and social security) and non-taxable fringe benefits. Incomes are deflated using the Consumer Price Index. Column (4) reports the fraction of total real family income growth (or loss) captured by the top 1%. For example, from 2002 to 2007, average real family incomes grew by 16.1% but 65% of that growth accrued to the top 1% while only 35% of that growth accrued to the bottom 99% of US families. Source: Piketty and Saez (2003), series updated to 2015.

“Exploding Wealth Inequality in the U. S “Exploding Wealth Inequality in the U.S.”, Emmanuel Saez and Gabriel Zucman, Washington Center for Equitable Growth