Library Index :: Family and Social Issues of the United States :: Income Money and Poverty Status - Change In Methodology, Income Differences, Poverty Status Of Minorities, Children Living In Poverty, Welfare Reform - ELDERLY POOR, GOVERNMENT PROGRAMS

Income Money and Poverty Status - Income Differences

In 2002 the median income, which includes money income before taxes and not including the value of such noncash benefits as food stamps, Medicare, Medicaid, public housing, and employer-provided benefits, of American households for all races was $42,409. A household consists of a person or persons who occupy the same housing unit and may have just one person (the householder who owns or rents the house). It may also consist of related family members (family household) or unrelated persons (nonfamily household). The median income of non-Hispanic white households (meaning half of such households earned more and half earned less) was $46,900, considerably higher than that of Hispanic ($33,103) and African-American alone ($29,026) and African-American alone or in combination ($29,177) households. However, non-Hispanic white income was significantly less than the median household income of Asians alone ($52,626); Asians alone or in combination ($52,285); Asian, Native Hawaiian, and other Pacific Islander, alone or in combination ($52,018), and the category of Asian and/or Native Hawaiian, and other Pacific Islander ($52,291). (See Table 5.1.)

Married-Couple Households

In 2002, 75.8 percent of all families were married-couple families with a median income of $61,254. The median income for female-headed households with no husband present was substantially lower, at $29,001. The median income for male-headed households with no wife present was also lower than the married-couple median, at $41,711. (See Table 5.2.)

Married couples tend to have a higher income than single householders do. Because of their low marriage rates, African-Americans are at a disadvantage. Among those over age fifteen, African-Americans are far more likely than whites, Hispanics, or Asians and Pacific Islanders (APIs) to have never married. In March 2000, 43.5 percent of African-Americans had never been married, compared to 25.5 percent of whites, 33.2 percent of Hispanics, and 33.1 percent of APIs. (See Table 2.1 in Chapter 2.)

Per Capita Income

Per capita income is figured by dividing the total (aggregate or composite) national income by the total population. This means that if all the nation's earnings were divided equally among every man, woman, and

TABLE 5.1
Household income by race and Hispanic origin and income definition, 2001 and 2002
(Households as of March of the following year)

2001 2002
Median income (in 2002 dollars) Median income
Race and Hispanic origin Number (thousands) Value (dollars) Race and Hispanic origin Number (thousands) Value (dollars) Percent change in real income 2002 less 2001
Money income (MI)
All races 109,297 42,900 All races 111,278 42,409 *−1.1
White 90,682 45,225 White alone or in combination 92,740 44,964 −0.6
White alone1 91,645 45,086 −0.3
White, not Hispanic 80,818 47,041 White alone, not Hispanic 81,166 46,900 −0.3
Black 13,315 29,939 Black alone or in combination 13,778 29,177 *−2.5
Black alone2 13,465 29,026 *−3.0
Asian and Pacific Islander 4,071 54,488 Asian alone or in combination 4,079 52,285 *−4.0
Asian alone3 3,917 52,626 −3.4
Asian, Native Hawaiian and Other
Pacific Islander, alone or in combination 4,371 52,018 *−4.5
Asian and/or Native Hawaiian and
Other Pacific Islander4 4,164 52,291 *−4.0
Hispanic origin (of any race) 10,499 34,099 Hispanic origin (of any race) 11,339 33,103 *−2.9
MI−Tx (money income plus realized capital gains (losses), less income and payroll taxes)
All races 109,297 37,376 All races 111,278 37,066 *−0.8
White 90,682 38,991 White alone or in combination 92,740 38,764 −0.6
White alone1 91,645 38,857 −0.3
White, not Hispanic 80,818 40,254 White alone, not Hispanic 81,645 40,212 −1.0
Black 13,315 26,613 Black alone or in combination 13,778 26,288 −1.2
Black alone2 13,465 26,168 −1.7
Asian and Pacific Islander 4,071 45,360 Asian alone or in combination 4,079 43,803 *−3.4
Asian alone3 3,917 44,080 −2.8
Asian, Native Hawaiian and Other
Pacific Islander, alone or in combination 4,371 43,482 *−4.1
Asian and/or Native Hawaiian and Other Pacific Islander4 4,164 43,779 *−3.5
Hispanic origin (of any race) 10,499 30,607 Hispanic origin (of any race) 11,339 30,291 −1.0
MI−Tx+NC−MM (money income plus realized capital gains (losses), less income and payroll taxes, plus value of employer-provided health benefits and all noncash transfers except Medicare and Medicaid)
All races 109,297 39,553 All races 111,278 39,426 −0.3
White 90,682 41,218 White alone or in combination 92,740 41,173 −0.1
White alone1 91,645 41,272 0.1
White, not Hispanic 80,818 42,521 White alone, not Hispanic 81,166 42,623 0.2
Black 13,315 28,748 Black alone or in combination 13,778 28,467 −1.0
Black alone2 13,465 28,338 −1.4
Asian and Pacific Islander 4,071 48,287 Asian alone or in combination 4,079 47,252 −2.1
Asian alone3 3,917 47,501 −1.6
Asian, Native Hawaiian and Other Pacific Islander, alone or in combination 4,371 46,829 *−3.0
Asian and/or Native Hawaiian and Other Pacific Islander4 4,164 47,109 −2.4
Hispanic origin (of any race) 10,499 32,678 Hispanic origin (of any race) 11,339 32,651 −0.1

child, each person would receive this amount. The per capita figure is often used to compare the wealth of countries or groups within countries. In 2002 the per capita income for non-Hispanic whites was $26,128; white alone, $24,142; whites alone or in combination, $23,962; Hispanics (of any race), $13,487; African-Americans

TABLE 5.1
Household income by race and Hispanic origin and income definition, 2001 and 2002 [CONTINUED]
(Households as of March of the following year)

2001 2002
Median income (in 2002 dollars) Median income
Race and Hispanic origin Number (thousands) Value (dollars) Race and Hispanic origin Number (thousands) Value (dollars) Percent change in real income 2002 less 2001
MI−Tx+NC (money income plus realized capital gains (losses), less income and payroll taxes, plus value of employer-provided health benefits and all noncash transfers)
All races 109,297 42,194 All races 111,278 42,061 −0.3
White 90,682 43,860 White alone or in combination 92,740 43,767 −0.2
White alone1 91,645 43,871 –
White, not Hispanic 80,818 45,171 White alone, not Hispanic 81,166 45,203 0.1
Black 13,315 31,002 Black alone or in combination 13,778 30,698 −1.0
Black alone2 13,465 30,576 −1.4
Asian and Pacific Islander 4,071 49,913 Asian alone or in combination 4,079 48,698 −2.4
Asian alone3 3,917 48,954 −1.9
Asian, Native Hawaiian and Other Pacific Islander, alone or in combination 4,371 48,303 *−3.2
Asian and/or Native Hawaiian and Other Pacific Islander4 4,164 48,596 −2.6
Hispanic origin (of any race) 10,499 34,939 Hispanic origin (of any race) 11,339 34,633 −0.9
MI−Tx+NC+HE (money income plus realized capital gains (losses), less income and payroll taxes, plus value of employer-provided health benefits and all noncash transfers, plus imputed return to home equity)
All races 109,297 43,925 All races 111,278 43,760 −0.4
White 90,682 45,631 White alone or in combination 92,740 45,635 –
White alone1 91,645 45,743 0.2
White, not Hispanic 80,818 47,033 White alone, not Hispanic 81,166 47,199 0.4
Black 13,315 31,891 Black alone or in combination 13,778 31,523 −1.2
Black alone2 13,465 31,408 −1.5
Asian and Pacific Islander 4,071 51,624 Asian alone or in combination 4,079 50,312 −2.5
Asian alone3 3,917 50,604 −2.0
Asian, Native Hawaiian and Other Pacific Islander, alone or in combination 4,371 49,920 * −3.3
Asian and/or Native Hawaiian and Other Pacific Islander4 4,164 50,242 *−2.7
Hispanic origin (of any race) 10,499 35,882 Hispanic origin (of any race) 11,339 35,447 −1.2
–Represents zero or rounds to zero.
*Significantly different from zero at the 90-percent confidence level.
1The 2003 Current Population Survey allowed respondents to choose more than one race. White alone refers to people who reported White and did not report any other race category. The use of this single-race population does not imply that it is the preferred method of presenting or analyzing data. The Census Bureau uses a variety of approaches. Information on people who reported more than one race, such as "White and American Indian and Alaska Native" or "Asian and Black or African American," in Census 2000 is forthcoming and will be available through American FactFinder in 2003. About 2.6 percent of people reported more than one race.
2Black alone refers to people who reported Black and did not report any other race category.
3Asian alone refers to people who reported Asian and did not report any other race category.
4Asian and/or Native Hawaiian and Other Pacific Islander refers to people who reported either or both of these categories, but did not report any other category.
SOURCE: Adapted from Carmen DeNavas-Walt, Robert W. Cleveland, and Bruce H. Webster, Jr., "Table 1. Household Income by Race and Hispanic Origin and Income Definition: 2001 and 2002," in Money Income in the United States: 2002, U.S. Census Bureau, Washington, DC, 2003 [Online] http://www.census.gov/prod/2003pubs/p60-221.pdf [accessed March 11, 2004]

alone, $15,411; African-Americans alone or in combination, $15,269; Asians alone, $24,131; Asians alone or in combination, $23,252; Asians, Native Hawaiians, and other Pacific Islanders, alone or in combination, $22,810; and Asians and/or Native Hawaiians, and other Pacific Islanders, $23,792. (See Table 5.3.)

TABLE 5.2
Comparison of summary measures of money income and earnings by selected characteristics, 2001 and 2002
(Households and people as of March of the following year)

2001 2002
Median money income (in 2002 dollars) Median money income
Characteristic Number (thousands) Value (dollars) Number (thousands) Value (dollars) Percent change in real money income 2002 less 2001
Households
All households 109,297 42,900 111,278 42,409 −1.1
Type of household
Family households 74,329 53,106 75,596 52,704 −0.8
Married-couple families 56,747 61,433 57,320 61,254 −0.3
Female householder, no husband
present 13,143 28,590 13,620 29,001 1.4
Male householder, no wife
present 4,438 41,363 4,656 41,711 0.8
Nonfamily households 34,969 26,039 35,682 25,406 −2.4
Female householder 19,390 20,586 19,662 20,913 1.6
Male householder 15,579 32,826 16,020 31,404 −4.3
Age of householder
Under 65 years 86,821 50,010 88,619 49,510 −1.0
15 to 24 years 6,391 28,644
25 to 34 years 18,988 45,797 19,055 45,330 −1.0
35 to 44 years 24,031 54,168 24,069 53,521 −1.2
45 to 54 years 22,208 58,968 22,623 59,021 0.1
55 to 64 years 15,203 46,593 16,260 47,203 1.3
65 years and over 22,476 23,486 22,659 23,152 −1.4
Nativity of the householder
Native born 95,884 43,600 97,365 43,222 −0.9
Foreign born 13,413 38,552 13,912 37,979 −1.5
Naturalized citizen 6,069 44,667 6,423 45,430 1.7
Not a citizen 7,344 35,366 7,490 33,980 −3.9
Region
Northeast 21,128 46,443 21,229 45,862 −1.3
Midwest 25,755 44,531 25,630 43,622 −2.0
South 39,151 39,523 40,107 39,522 –
West 23,263 45,804 24,313 45,143 −1.4
Residence
Inside metropolitan areas 88,112 45,938 90,075 45,257 −1.5
Inside central cities 32,540 37,315 33,543 36,863 −1.2
Outside central cities 55,572 51,503 56,532 50,717 −1.5
Outside metropolitan areas 21,185 34,135 21,203 34,654 1.5
Earnings of full-time, year-round workers
Male 58,712 38,884 58,761 39,429 1.4
Female 41,639 29,680 41,876 30,203 1.8
–Represents zero or rounds to zero.
SOURCE: Adapted from Carmen DeNavas-Walt, Robert W. Cleveland, and Bruce H. Webster, Jr., "Table 3. Comparison of Summary Measures of Money Income and Earnings by Selected Characteristics: 2001 and 2002," in Money Income in the United States: 2002, U.S. Census Bureau, Washington, DC, 2003 [Online] http://www.census.gov/prod/2003pubs/p60-221.pdf [accessed March 11, 2004]

Minority Incomes

WOMEN STILL EARNING LESS.

The U.S. Census Bureau reported that women earned considerably less than men in all races and groups. In 2002 the median earning for men working full time, year-round was $39,429. For women working full time, year-round, the median income was $30,203. (See Figure 5.1.)

HISPANIC INCOME.

In 2002 non-Hispanic white families earned a median income of $46,900, compared to $33,103 for Hispanic families. (See Table 5.1.) The financial situation among Hispanic subgroups, however, tends to vary. In 2001, 26.3 percent of Hispanics working full-time, year-round earned $35,000 or more, compared with 53.8 percent of non-Hispanic whites who earned $35,000 or more. Among the Hispanic subgroups, Puerto Ricans who earned $35,000 or more in 2001 totaled 34.8 percent, followed by Cubans (34.3 percent), Central and South American Hispanics (28 percent), and Mexican-origin Hispanics (23.6 percent). (See Figure 5.2.)

NATIVE AMERICAN POPULATION.

Between 1998 and 2000, Native Americans and Alaska Natives had lower income averages than APIs and non-Hispanic whites, but had higher

TABLE 5.3
Per capita money income by race and Hispanic origin, 2001 and 2002

2001 2002
Race and Hispanic origin Number (thousands) Per capita income (in 2002 dollars) Race and Hispanic origin Number (thousands) Per capita income (in 2002 dollars) Percent change in real income 2002 less 2001
All races 282,082 23,214 All races 285,933 22,794 −1.8
White 230,071 24,511 White alone or in combination 235,036 23,962 −2.2
White alone1 230,809 24,142 −1.5
White, not Hispanic 194,822 26,550 White alone, not Hispanic 194,421 26,128 −1.6
Black 36,023 15,191 Black alone or in combination 37,350 15,269 0.5
Black alone2 35,806 15,441 6.1
Asian and Pacific Islander 12,500 24,663 Asian alone or in combination 12,504 23,252 −5.7
Asian alone3 11,558 24,131 −2.2
Asian, Native Hawaiian and Other Pacific Islander, alone or in combination 13,523 22,810 −7.5
Asian and/or Native Hawaiian and Other Pacific Islander4 12,362 23,792 −3.5
Hispanic origin (of any race) 37,438 13,210 Hispanic origin (of any race) 39,384 13,487 2.1
1The 2003 Current Population Survey allowed respondents to choose more than one race. White alone refers to people who reported White and did not report any other race category. About 2.6 percent of reported more than one race.
2Black alone refers to people who reported Black and did not report any other race category.
3Asian alone refers to people who reported Asian and did not report any other race category.
4Asian and/or Native Hawaiian and Other Pacific Islander refers to people who reported either or both of these categories, but did not report any other category.
SOURCE: Carmen DeNavas-Walt, Robert W. Cleveland, and Bruce H. Webster, Jr., "Table 4. Per Capita Money Income by Race and Hispanic Origin: 2001 and 2002," in Income in the United States: 2002, U.S. Census Bureau, Washington, DC, 2003 [Online] http://www.census.gov/prod/2003pubs/p60-221.pdf [accessed May 13, 2004]

income averages than African-Americans and Hispanics. Native Americans and Alaska Natives had an average income between 1998 and 2000 of $31,800, compared to $52,600 for APIs, $45,500 for non-Hispanic whites, $31,700 for Hispanics, and $28,700 for African-Americans. (See Table 5.4.)

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