The "income gap" is the growing gap between the median income of the top group and bottom group - many economists use "quintiles" or 20% but the below is applicable to 10%, 5%, etc... for the last 25 years.
All groups' incomes are rising, the top group is rising fastest. Individual membership in each group turns over - of the bottom group, 85.5% won't be in it 10 years from now, 15% will be in the top group and 63% will be in the top 60%.
Statistically if most but not all individuals' incomes rise, the top group will increase by most and the bottom group will increase by the least, because individuals in the bottom group moving up will soon leave it, while individuals in the top group moving up just keep bringing the group up, and because most new entrants to the economy (young people and immigrants) start at the bottom.
Some people compare "groups" in the relative, without the detail, and spin it to support a bogus "feudal" world view - a fairly transparent shell-game. Why?
2007-02-09
09:00:12
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1 answers
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asked by
Anonymous
in
Economics