Recent Trends in U.S. Earnings and Family Incomes

Since 1973, U.S. wage rates have shown slow growth bordering on stagnation. During this period, the real annual earnings distribution of prime age men has shown both little average growth and increased inequality. The distribution of real annual family incomes has similarly shown little average growth and increased inequality. By contrast, the distribution of real annual women's earnings has shown modest growth and a slight trend toward equality. When wage trends are disaggregated by group, the data show a sharp deterioration in the real wages of young, less educated men and a sharp increase in the wage rates of younger, better educated women. Disaggregation of the family income distribution shows that growing family income inequality is driven, in part, by the growing number of families who are are either headed by a single woman or are husband-wife families with two earners.