1. Income Distribution and Poverty

10. Income Inequality in the United States Source: Brookings Merge File and authors’ estimates. 1.5 29.7 3.2 10.0 Top 1 percent 13.7 70.2 35.2 46.6 Top fifth 13.9 16.4 27.3 23.6 Fourth fifth 18.7 8.4 19.9 14.7 Third fifth 26.1 4.0 11.9 9.1 Second fifth 27.6 1.0 5.7 6.0 Bottom fifth TRANSFER INCOME PROPERTY INCOME WAGES AND SALARIES TOTAL INCOME HOUSEHOLDS Distribution of Total Income and Components in the United States, 1997 (Percentages)

12. Changes in the Distribution of Income Source: Statistical Abstract of the United States , various editions; Department of Commerce, HHES Division. 20.7 20.1 16.0 15.3 15.9 15.9 17.2 Top 5 percent 47.2 46.9 42.9 41.5 41.4 41.3 43.0 Top fifth 23.0 23.3 24.4 24.3 23.9 24.0 23.1 Fourth fifth 15.7 15.7 17.0 17.5 17.5 17.8 17.0 Third fifth 9.9 10.0 11.0 11.5 11.9 12.2 11.8 Second fifth 4.2 4.2 4.7 5.2 5.4 4.8 5.0 Bottom fifth 1997 1994 1984 1980 1972 1960 1947 Distribution of Money Income of U.S. Families by Quintiles, 1947 – 1997 (Percentages)

16. Differences Between African-American Households, White Households, and Single-Person Households Note: Totals may not add to 100 due to rounding. Source: Statistical Abstract of the United States , 1999, Tables 742 and 744. 100.0 100.0 100.0 100.0 100.0 Total 4.7 9.1 19.7 7.9 18.4 75,000 + 7.7 12.2 18.8 13.1 18.1 50-75,000 11.6 16.6 16.5 14.9 16.3 35-50,000 14.0 15.0 13.2 14.2 13.3 25-35,000 20.7 19.7 14.6 17.9 14.9 15-25,000 15.8 10.7 7.8 10.5 8.1 10-15,000 25.4 16.8 9.5 21.4 11.0 0-10,000 ONE-PERSON HOUSEHOLDS HISPANIC HOUSEHOLDS WHITE HOUSEHOLDS AFRICAN-AMERICAN HOUSEHOLDS ALL HOUSEHOLDS Distribution of Money Income of Households, 1997 (Percentages)

18. Poverty in the United States Since 1960 a Includes food, housing, and medical benefits. Source: Statistical Abstract of the United States , 1999, Tables 760, 763, 766, and 770. NA 19.9 20.7 Children under 18 NA 10.5 28.5 Elderly (65+) NA 35.1 45.9 Female householder – no husband present 19.6 27.1 NA Hispanic 19.3 26.5 49.6 African-American 8.4 11.0 14.9 White 10.0 13.3 19.0 All ADJUSTED FOR IN-KIND TRANSFERS AT MARKET VALUE, 1997 a OFFICIAL MEASURE 1964 OFFICIAL MEASURE 1964 Percentage of Persons in Poverty by Demographic Group, 1964 - 1997

20. The Distribution of Wealth Source: James Poterba, “Stock Market Wealth and Consumption,” Journal of Economic Perspectives, 14(2), 99 – 118 , Spring 2000. 18.5 29.3 14.0 4.1 1.7 Bottom 80 percent 68.9 50.7 72.2 86.2 91.2 Top 10 percent 34.0 14.8 32.0 47.7 53.2 Top 1 percent 25.6 10.2 24.2 37.0 41.4 Top .5 percent NET WORTH HOUSING EQUITY NONEQUITY FINANCIAL ASSETS ALL COMMON STOCK COMMON STOCK EXCLUDING PENSIONS PERCENTAGE OF OWNERS Percentage of Different Assets Owned by Households, 1998 Survey of Consumer Finances