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1.1.3 Share of Total Overall Income Earned by Household Income Level
Why is this important?
A look at the distribution of income across a population typically reveals that is that it is not an equal distribution. In fact, many economists use the term income inequality rather than income distribution.
Local leaders and policy analysts monitor the trends of income distribution throughout their community to help provide clues about why income is distributed in the first place. It can indicate how labor markets allocate earnings to individuals and help determine if the changes might be due to a larger structural change in the overall economy. There are also consequences of a widening gap between the lowest- and the highest-earning in a society.
Research on income distribution in the United States began in the early part of the 20th century, so analysts have a long tradition of explaining the inequalities. Recently, a trend toward greater inequality has been linked to changes in the labor market and in household composition. The labor market changes involved a shift in the 1980s away from goods-producing industries (that had been providing higher earnings opportunities to lower-skilled workers) to technical service industries (that tend to employ more educated workers at a higher wage) and to low-wage industries like retail trade. Household composition, the second influencer of income inequality, has also evolved to yield a wider spread in the distribution. A higher share of households is now composed of single-parent and non-family households, which translates to a lower overall household income.
This indicator measures the share of the total overall income in Walla Walla and Columbia Counties taken by five different groups (quintiles) of households. The five categories are:
- The top 81%-100% of households by income claimed.
- The 61%-80% quintile of households by income claimed.
- The 41%-60% quintile of households by income claimed.
- The 21%-40% quintile of households by income claimed.
- The lowest 0%-20% quintile of households by income claimed
Washington State and the U.S. are offered as benchmarks. Additional information, including the share of the top 5% of household income earners for each of the offered jurisdictions, can be found in the “Download Data” section.
According to the US Census Bureau, the pandemic made the collection of accurate one-year estimates for the American Community Survey (ACS) impossible in 2020. Five-year estimates might be available for popular series in early 2022.
Where are we?
During 2023 in Walla Walla & Columbia Counties (MSA), the estimated share of total income taken by the
- Top quintile (81%-100%) of households the MSA was 49.51%, increasing from 48.6% in 2013 (not statistically significant)
- 61%-80% quintile of households in the MSA was 23.81%, decreasing from 24.0% in 2013 (not statistically significant)
- 41%-60% quintile of households in the MSA was 15.7%, increasing from 15.40% in 2013 (not statistically significant)
- 21%-40% quintile of households in the MSA was 8.55%, increasing from 8.50% in 2013 (not statistically significant)
- 0%-20% quintile of households in the MSA was 3.2%, decreasing from 3.4% in 2013 (not statistically significant)
During 2023 in Washington State, the estimated share of total income taken by the:
- The top (81%-100%) of households was 50.67%, increasing from 48.1% in 2006. (statistically significant)
- The 61%-80% quintile of households was 22.6%, decreasing from 23.2% in 2006. (statistically significant)
- The 41%-60% quintile of households was 14.67%, decreasing from 15.4% in 2006. (statistically significant)
- The 21%-40% quintile of households was 8.92%, decreasing from 9.6% in 2006. (statistically significant)
- The lowest (0%-20%) of households was 3.15%, decreasing from 3.7% in 2006. (statistically significant)
During 2023 in the U.S., the estimated share of total income taken by the:
- The top (81%-100%) quintile of households was 51.64%, increasing from 49.9% in 2006. (statistically significant)
- The 61%-80% quintile of households was 22.54%, decreasing from 23.0% in 2006. (statistically significant)
- The 41%-60% quintile of households was 14.33%, decreasing from 14.9% in 2006. (statistically significant)
- The 21%-40% quintile of households was 8.5%, decreasing from 8.9% in 2006. (statistically significant)
- The lowest (0%-20%) quintile of households was 3.0%, decreasing from 3.4% in 2006. (statistically significant)
Data Sources
U.S. Census Bureau: American Community Survey (ACS) - Explore Census Data
Notes:
1) This information comes from a survey, so the data presented are estimates. All significant tests are done at the 90% confidence interval. The margin of errors is provided in the “Download Data” section.
2) Not all indicators can be tested for statistical significance. For example, some indicators use portions of data from multiple ACS sources, and the test is cannot be running. If available, the results of the test are offered. When no test results are offered, the statistical significance test was not able to be conducted.
3) Learn more about the ACS:
