S. Department of Labor, 2006). A study conducted by the United States Department of Labor in 2005 revealed that the differences in weekly earnings registered by the individuals without a high school diploma and individuals possessing doctoral studies can total up to $1,012. Also, the differences are easily noticeable between consecutive levels. For instance, an individual who has finished high school but did not go to college will make about $583 per week, whereas the individual who has dropped out of college will only make $409 per week. The actual statistics are revealed in the chart below:
Source: Education and Income: More Learning is Key to Higher Earnings, U.S. Department of Labor, Bureau of Labor Statistics
As the trend becomes more and more obvious, the young population decides in favour of education, in the detriment of dropping out of school and getting a low paid position. As a results, "we are mode educated than ever. In 2000, 84% of American adults ages 25 and over had at least completed high school; 26% had a bachelor's degree or higher. Both figures were all-time highs" (U.S. Census Bureau, 2002).
Race
The race or ethnicity of an individual represents the third independent variable that influences the household income. Generally, there has been observed a wide gap between the incomes realized by households held by white Americans and other races. Currently however, the gap seems to be narrowing.
A study conducted in 2000 by the U.S. Census Bureau retrieved the following information for the year 1999:
the median average of the household incomes realized by all races was of $41,994 the white population registered a median household income of $44,687 the African-American registered a median income of $29,423 the American Indian had an average household income of $30,599 the native Hawaiian and other Pacific Islanders owned households registered incomes of $42,717 other minorities registered a mean household income of $32,694 the Hispanics realized an annual average of $33,676 (U.S. Census Bureau, 2000)
In 2004, the white population still registered the highest incomes, and it was being followed by the Asian, African-American and Hispanics.
Age
The age of the household members is yet another...
However the results may vary in time, the differences are often negligible and a relatively clear conclusion can be formed as to the wealthiest age groups. In 1999 for instance, the wealthiest age group consisted of the individuals between 45 and 54, with an average annual income of $56,300. They were closely followed by the group age 35 to 44, with an annual average of $50,654. The third position was occupied by the 55 to 64 group age, with an annual medium of $47,447. The actual numbers are shown in the chart below:
Source: Household Income: 1999, Census 2000 Brief, U.S. Census Bureau, 2000 study conducted by the same authority in 2005 revealed a different age distribution of the income. As such, the wealthiest category was formed from individuals between the ages of 45 and 54, with a medium value of $62,133. The second wealthiest category were the individuals between 35 and 44, with $55,273 per annum. The third group age was formed from the individuals between 55 and 64 with a yearly average of $54,766; they are followed by the 25 to 34 category, with an average of $48,896; the 65 to 74 with $34,243; the 15 to 24 with $27,586 and finally, the population over than 75, with a medium of $20,487 per year (U.S. Census Bureau, 2005).
The household income is a dependent variable that can be influenced by various mutations in the micro and macro environments. Three primary independent variables that influence it are the education of the household members, their age and also their race.
Works Cited
Hoyt, S., Education and Wealth, Economy, http://www.economy.comlast accessed on June 10, 2008
Current Population Survey, U.S. Census Bureau, 2005, http://pubdb3.census.gov/macro/032005/hhinc/new02_001.html. Ast accessed on June 10, 2008
Economic Statistics Briefing Room - Income, Official Website of the White House, http://www.whitehouse.gov/fsbr/income.html, last accessed on June 10, 2008
Education and Income: More Learning is Key to Higher Earnings, U.S. Department of Labor, Bureau of Labor Statistics, 2006, Retrieved at http://www.bls.gov/opub/ooq/2006/fall/oochart.pdfon June 10, 2008
Household Income: 1999, Census 2000 Brief, U.S. Census Bureau, 2000, Retrieved…
