Source: Census Bureau: Current Population Survey.

Income inequality continues to rise U.S. Gini Coefficient, 1970-2010

0.35

0.40

0.45

0.50

1970 1975 1980 1985 1990 1995 2000 2005 2010

02468

101214161820

1913 1923 1933 1943 1953 1963 1973 1983 1993 2003

Percent

Source: Piketty and Saez (2012).

Income is again more concentrated at the top Share of U.S. income earned by top 1-percent families, 1913-2010

Including capital gains

Excluding capital gains

2010

Source: Piketty and Saez (2012).

Income concentration accelerates fast in U.S. Top 0.1-percent income share of the nation, 1913-2007

0

2

4

6

8

10

12

14

1913 1923 1933 1943 1953 1963 1973 1983 1993 2003

Percent

United StatesUnited KingdomFrance

Source: Census Bureau: Current Population Survey.

More people living in poverty U.S., 1960-2010

0

5

10

15

20

25

05,000

10,00015,00020,00025,00030,00035,00040,00045,00050,000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Percent

Number of persons in poverty Poverty rate

Source: Census Bureau: Current Population Survey.

More than 1 out of 4 Black and Hispanic families lived in poverty U.S., 2010

0

5

10

15

20

25

30

Non-Hispanic White Black Asian Hispanic

Percent

People Family

Source: Corak (2006).

Lack of intergenerational mobility in the U.S. A measure of immobility: father-son earnings elasticity

0 0.1 0.2 0.3 0.4 0.5 0.6

U.K.

U.S.

France

Germany

Sweden

Canada

Finland

Norway

Denmark

0.6 in Mazumder

(2005)

Source: Census Bureau: Current Population Survey.

Education is the stepping stone to upward mobility Educational attainment by race, U.S., 1960-2010

0102030405060708090

100

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Percent

WhiteBlack

High school or

higher

College or higher

Source: Census Bureau: Current Population Survey.

It pays to go to college Ratio of real median household income by householder’s educational attainment (B.A. or higher vs. high school), 1992-2010

1.7

1.8

1.9

2.0

2.1

2.2

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Ratio

0 10 20 30 40 50 60 70 80 90

People get rewarded for intelligence and skill.

People get rewarded for their efforts.

Coming from a wealthy family is essntial or very important to getting ahead.

Income differences in my country is too large.

Other countriesU.S.

Sources: Brookings Institution, International Social Survey Program 1999.

U.S. myth of mobility? Attitudes of citizens toward mobility, 1999

Percent

Source: Piketty and Saez (2012).

“1 Percent” and the rest of American families Average income (including capital gains), 1913-2010

$400,549$484,600

$764,451

$1,282,163$1,435,002

$12,854 $38,760 $40,791

$47,228$47,178

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1913 1923 1933 1943 1953 1963 1973 1983 1993 2003

US$ (2010)

Top 1%Bottom 99%

1928 1968 1986 2000 2007

$1,019,089

$41,777

2010

Source: Census Bureau: Current Population Survey.

Lost decade for the American middle class Real median household income, 1980-2010

1980$44,616

1990$48,423

2000$53,164

2010$49,445

40,000

42,000

44,000

46,000

48,000

50,000

52,000

54,000

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Constant US$

Relative to the metro median income

Note: For metropolitan areas with population greater than 500,000.

Source: Reardon and Bischoff (2011).

Shrinking middle class community Proportion of families living in high-, middle-, and low-income neighborhoods, U.S.,1970-2007

>150%

125-150%

100-125%

80-100%

67-80%

<67%

Affluent

Poor

179

468

613

-3,549

-3,225

-2,063

-4,000 -3,000 -2,000 -1,000 0 1,000

Higher-wage industries: $19.05-$31.40

Mid-wage industries: $12.92-$19.04

Lower-wage industries: $9.03-$12.91

Net change in employment, in thousands

Source: Bureau of Labor Statistics, NELP .

Job loss and job growth in the private sector 2008 recession

Loss from January 2008 to February 2010 Growth from February 2010 to January 2011

Note: U.S. data for reading is not available in 2006.

Source: OECD.

U.S. students lag behind in math International assessment of 15-year-old students

2000 2003 2006 2009

Reading

2000 2003 2006 2009

Science

2000 2003 2006 2009

Math

US OECD510

500

490

480

470

460

450

Score

27.4 - 20.2 20.2-14.7 14.7-12.6 12.6-9.3 9.3-7.4 7.4-1.8

Source: OECD.

Socioeconomic background has a large impact on American students’ reading score

U.S. 16.8%

Percentage of explained variance by socioeconomic background

Source: Bureau of Labor Statistics.

Under-qualified workforce Ranked by fastest projected job growth, 2009 (part I)

Rank Occupation Typical education needed for entry

Percent under-qualified

3 Biomedical Engineers Bachelor's degree 27.96 Veterinary Technologists and

TechniciansAssociate's degree 64.6

8 Physical Therapist Assistants Associate's degree 30.510 Meeting, Convention, and

Event PlannersBachelor's degree 39.7

11 Diagnostic Medical Sonographers

Associate's degree 31.1

12 Occupational Therapy Assistants

Associate's degree 14.1

15 Interpreters and Translators Bachelor's degree 51.917 Market Research Analysts

and Marketing SpecialistsBachelor's degree 21.0

18 Marriage and Family Therapists

Master's degree 49.5

Source: Bureau of Labor Statistics.

Under-qualified workforce Ranked by fastest projected job growth, 2009 (part II)

Rank Occupation Typical education needed for entry

Percent under-qualified

20 Physical Therapists Doctoral or professional degree

85.2

21 Dental Hygienists Associate's degree 8.523 Audiologists Doctoral or

professional degree65.1

24 Health Educators Bachelor's degree 47.226 Cost Estimators Bachelor's degree 69.227 Medical Scientists, Except

EpidemiologistsDoctoral or

professional degree36.1

28 Mental Health Counselors Master's degree 49.530 Veterinarians Doctoral or

professional degree2.5

Economic Mobility

1 1

Source: Census Report 2011.

Real Median Income

40%

2.5%

47.9%

4.6%

Share of Income Going to the Richest

Source: BLS.

Wage Disparity Due to Education

Sources: CDC/NCHS, National Survey of Family Growth, 2006-2010.

The highly educated are less likely to divorce Probability that a first marriage will remain intact for 20 years without disruption, 22-to-44-year-olds, U.S., 2006-2010

00.10.20.30.40.50.60.70.80.9

Less than high school High school diploma Some college Bachelor's degree

Percent

Women Men

Source: Breen and Salazar (2008).

Educational homogamy increases over time U.S., 1976-1980 vs. 2002-2006

0

20

40

60

80

100

Norway France Canada Australia United Kingdom

Japan United States

Korea

Percent

Funding sources for higher education Selected OECD countries, 2007

Source: OECD.

Private household

Public

Other private entities

The Anglosphere

Continental Europe and Japan

Scandinavia and the Mediterranean

Emerging markets

The role of higher education

• If your parents are in the bottom quintile you have a 5% of getting into the top without a college degree and a 19% chance with one

• If you’re in the top quintile you have an 18% chance of getting into the bottom without a college degree and a 2% chance with one