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Income gap between poor families and others: Signs of individual freedom or proof of social inequality?

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Forum for Social Economics

Abstract

In 2001 the mean income deficit for poor families was $7,231. The mean income surplus for nonpoor families was $57,841. The sum of those two estimates—$65,072—represents what we call the family income gap. Between 1993 and 2000—the period marking the longest expansion in U.S. economic history—the real family income gap grew on average by $1,143 every year.

This article examines the difference in income between poor and nonpoor families, 1988–2001; transitions into and out of poverty; the income gap in 2001 by race and type of family; and three remedies for closing the gap. Concluding remarks call attention to the linkage between our understanding of human nature and the way in which poverty is defined and measured.

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References

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Mayo Research Institute

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O'Boyle, E.J. Income gap between poor families and others: Signs of individual freedom or proof of social inequality?. FSSE 32, 57–65 (2003). https://doi.org/10.1007/BF02779079

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  • DOI: https://doi.org/10.1007/BF02779079

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