HOUSEHOLD INCOME DISTRIBUTION
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Why is this important?
This measure shows how Long Island’s standard of living among households at different income levels has changed from year to year. It tracks the income of a representative four-person household. The first chart plots the four-person household income of the top 10%, the median and the bottom 10% of the income distribution. The second chart compares trends in overall household income (regardless of size) with trends in average wages paid by Long Island business establishments.
How are we doing?
Looking at the long-term trend from 1996 to 2006:
- Real incomes for households in the bottom 10% actually dropped 6% and those in the top 10% rose by 17%.
- Median Income for a four-person household has declined since 2003, while the U.S. median, for a four-person household had a slight increase.
These patterns indicate a widening of income inequality on Long Island and an increased economic burden on Long Island households.
Looking at the second graph it is apparent that while the inflation-adjusted income for all households was only marginally higher in 2006 relative to 1997, there has been some fluctuation. During this same period, averages wages paid by Long Island firms has been relatively more stable and seen positive growth. Household income is higher than the average wages paid by firms partly because household income often reflects the contributions of multiple wage earners. The fluctuations in household income tend to be associated with the rising and declining opportunities for secondary wage earners within households.