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Boundless Sociology
Stratification, Inequality, and Social Class in the U.S.
Social Class in the U.S.
Sociology Textbooks Boundless Sociology Stratification, Inequality, and Social Class in the U.S. Social Class in the U.S.
Sociology Textbooks Boundless Sociology Stratification, Inequality, and Social Class in the U.S.
Sociology Textbooks Boundless Sociology
Sociology Textbooks
Sociology
Concept Version 10
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Income

Individual and household income remains one of the most prominent indicators of class status within the United States.

Learning Objective

  • Discuss the relationship between income and class status


Key Points

    • Personal income is an individual's total earnings from wages, investment earnings, and other sources, and the mostly widely cited data on personal income comes from the U.S. Census Bureau's population surveys.
    • Though individuals in a household may hold low prestige or low earning jobs, having multiple incomes can allow for upward class mobility as a household's wealth increases.
    • According to the U.S. Census, men tend to have higher income than women, while Asians and whites earned more than African Americans and Hispanics.

Terms

  • U.S. Census Bureau

    The government agency that is responsible for the United States Census, which gathers national demographic and economic data.

  • income

    money one earns by working, or by capitalising off other people's work

  • Bureau of Economic Analysis

    The Bureau of Economic Analysis (BEA) is an agency in the United States Department of Commerce that measures important economic statistics, including the gross domestic product of the United States.

  • personal income

    All of an individual's monetary earnings, including salary, investment gains, inheritance, and any other gains.


Examples

    • U.S. Census Bureau data on household incomes is used to inform welfare policy, as benefits are distributed based on expectations about what income is needed to access basic resources like food and healthcare.
    • Salary alone only measures the income from a person's occupation, while total personal income accounts for investments, inheritance, real estate gains, and other sources of wealth. Many people who have vast accumulated wealth have virtually non-existent salaries, so total personal income is a better indicator of economic status.
    • On an individual basis, a person would need to have a high status, high paying occupation to belong to the upper middle class -- occupations that would likely be categorized within the group include those of physician or university professor. However, in a dual-income household the combined income of both earners, even if they hold relatively low status jobs, can put the household in the upper middle class income bracket.

Full Text

Income in the United States is most commonly measured by U.S. Census Bureau in terms of either household or individual income and remains one of the most prominent indicators of class status. Income is not one of its causes. In other words, income does not determine the status of an individual or household but rather reflects that status. Some say that income and prestige are the incentives provided by society in order to fill needed positions with the most qualified and motivated personnel possible.

Personal income is an individual's total earnings from wages, investment interest, and other sources. In the United States, the most widely cited personal income statistics are the Bureau of Economic Analysis's personal income and the Census Bureau's per capita money income. The Census Bureau also produces alternative estimates of income and poverty based on broadened definitions of income that include many components that are not included in money income. Estimates are available by demographic characteristics of householders and by the composition of households. According to the US Census, men tend to have higher income than women, while Asians and whites earned more than African Americans and Hispanics.

The combination of two or more incomes allows for households to increase their income substantially without moving higher on the occupational ladder or attaining higher educational degrees. Thus, it is important to remember that the favorable economic position of households in the top two quintiles is in some cases, the result of combined income, rather than the high status of a single worker.

Working class

A monument to the working and supporting classes along Market Street in the heart of San Francisco's Financial District, home to tens-of-thousands of professional upper class and managerial middle class workers.

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