Demographics’ role in income inequality

by Ryan Streeter on January 8, 2013. Follow Ryan on Twitter.

Mark Perry writes:

Household demographics, including the average number of earners per household and the marital status, age, and education of householders are all very highly correlated with household income.  Specifically, high-income households have a greater average number of income-earners than households in lower-income quintiles, and individuals in high income households are far more likely than individuals in low-income households to be well-educated, married, working full-time, and in their prime earning years.  In contrast, individuals in lower-income households are far more likely than their counterparts in higher-income households to be less-educated, working part-time, either very young (under 35 years) or very old (over 65 years), and living in single-parent households.

He includes this chart in his post, which is illuminating: