Income vs. Earnings

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Income and earnings are often confused. In reality, earnings are just one kind of income.

Every year, the Census Bureau collects data on how much money households obtain from 50 different sources, all of which we label “income.” Earnings, primarily wages and salary from a job, are usually a big source of income. Other sources of income include Social Security payments, pensions, child support, public assistance, annuities, money derived from rental properties, interest and dividends.

During the 2009 calendar year, median household income totaled $49,800, which did not differ from the previous year. Median means half of households had income more than this amount, and half less. The total indicates the amount of money everyone 15 years and older living in the household collectively brought in that year.

Real Median Earnings by Sex

When we examine earnings, we find big differences by the gender of workers. Among people who worked year-round and full-time in 2009, men earned a median of $47,100 and women $36,300 or 77 cents for every dollar earned by men. Earnings actually increased between 2008 and 2009 for both sexes.

Over the years, researchers and analysts have used these annual income and earnings estimates to chart the effectiveness of government programs, gauge the economic well-being of the country, develop marketing strategies for business and assess the impact of changing demographic patterns. These numbers are considered the most timely and accurate national data on income.

Respondents in our surveys may feel uneasy giving information on personal subjects like income. Not to worry, though. All Census Bureau employees take an oath of nondisclosure and are sworn for life not to share confidential data with anyone.

To access all of our income data, visit the Census Bureau’s Income website.

Read Press Release: Income, Poverty and Health Insurance Coverage in the United States: 2009

View Census: Income, Poverty and Health Insurance data presentation slides

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6 Responses to Income vs. Earnings

  1. 20MilesNorth says:

    is the census data broken down by local? I mean $47,100 in New York isnt the same as $47,100 in Kansas. How is the data categorized and broken down for us to read?

  2. Sam@Census says:

    @20MilesNorth – Please visit American Factfinder on our website for the new data just released from 2009 American Community Survey. One table that may be interesting to you: state ranking on median household income.
    http://factfinder.census.gov/

  3. Andy says:

    Great graphic and perfect for an artcile I was writing at my site (www.savingtoinvest.com). I’ll link back to it with my analysis. Thanks.

  4. Joseph says:

    I have been doing some research about home based business income (what home based businesses do best) for content on my website (www.businessmoneytoday.com). But, this post here has encouraged me to look even deeper – for example, which home based businesses provide women better opportunity and which for men. The opportunity based on income level and could women with home based businesses close the income gap you outline above?

  5. Pension Release says:

    I appreciate the work that you have put into this page.

  6. Paul Cims says:

    pension release is the name given to the unlocking of a cash lump sum from your pension fund before you retire. Typically, upon retirement you are able to access up to 25% of your fund in cash and use the remainder to purchase an annuity.
    However, the government are now allowing people over the age of 55 to access this cash without actually retiring. The remainder of the fund is then left in your pension plan, with any further contributions being added to a new fund.
    Thanks for the great article on pension release advice
    Regards
    Paul

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