Household Income distribution, Poverty Rates, Income differences and Welfare Reform

Topic

Household Income distribution, Poverty Rates, Income differences and Welfare Reform

Instructions

(Distribution of Household Income) Look back at the graph below. How would you explain the shift of the U.S. income distribution in the last two decades? 

(Poverty Rates Over Time) During what period since 1960 did the U.S. poverty rate fall the most? Why? Which age group has shown the most decline in poverty rates since 1960 and why?

(Income Differences) List some reasons why household incomes differ. Which factors are the most important?

(Welfare Reform) What has happened to the percentage of the U.S. population on welfare since 1994? What explains the change over time?

Answer preview

Over the last few years, the U.S share income has augmented towards the highest fifth while moving to the lowest fifth, the share has diminished. The increase in share of income for the highest quintile of the populace is triggered by the elevation of household composing of two-earner and the expansion of the share of income moving to top 5% of the populace

Word count: 405