Professional Documents
Culture Documents
Gloria Guzman and Melissa Kollar prepared this report under the
direction of Matthew Unrath, Chief of the Income Statistics Branch.
Liana E. Fox, Assistant Division Chief for Economic Characteristics in
the Social, Economic, and Housing Statistics Division, provided overall
direction.
Mallory Bane, Preeti Vaghela, and Richard Lee, under the supervision of
David Watt, Lorelai D. De Vos, and Craig Johnson, all of the Demographic
Systems Division, and Tim Marshall of the Demographic Programs
Directorate—Survey Operations, processed the Current Population Survey
2023 Annual Social and Economic Supplement (CPS ASEC) file.
Tim Marshall, Roberto Marrero Cases, and Roselyn Rosal Tineo, all of the
Demographic Programs Directorate—Survey Operations, provided overall
direction for the survey implementation. Charlie Carter and Johanna Rupp,
both of the Information Technology Directorate, prepared and programmed
the computer-assisted interviewing instrument used to conduct the CPS
ASEC.
The authors would like to also thank the Census Bureau field representatives
and telephone interviewers who conducted the interviews that provide the
data in this report. Without their dedication, the preparation of this report
or any report from the Current Population Survey would be impossible.
We wish David Watt and Susan Gajewski, both responsible for CPS
ASEC processing, and Agatha Jung, responsible for ASEC instrument
programming, all the best in their retirements. We also acknowledge the
substantial contributions of Lisa Cheok, formerly of the CPS Processing
Branch, as she transitions to a new position at the Census Bureau. Their
dedication and institutional knowledge are greatly missed.
Income in the United States: 2022 Issued September 2023
P60-279
Ron S. Jarmin,
Deputy Director and Chief Operating Officer
Victoria A. Velkoff,
Associate Director for Demographic Programs
David G. Waddington,
Chief, Social, Economic, and Housing Statistics Division
Contents TEXT
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
INCOME INEQUALITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Money Income Inequality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Equivalence-Adjusted Income Inequality. . . . . . . . . . . . . . . . . . . . . . . . . . . 7
SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
FIGURES
Figure 1. Median Household Income and Percent Change by
Selected Characteristics. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Figure 2. Real Median Household Income by Race and Hispanic
Origin: 1967 to 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Figure 3. Income Distribution Measures and Percent Change
Using Money Income and Equivalence-Adjusted
Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Figure 4. Median Earnings and Percent Change by Work Status
and Sex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Figure 5. Total and Full-Time, Year-Round Workers 15 Years and
Older With Earnings by Sex: 1967 to 2022. . . . . . . . . . . . 9
Figure 6. Female-to-Male Earnings Ratio and Median Earnings of
Full-Time, Year-Round Workers 15 Years and Older
by Sex: 1960 to 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Figure C-1. Historical Median Income Using Alternative Price
Indexes: 1967 to 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Figure C-2. Real Annual Income Growth Using Alternative
Price Indexes: 2017 to 2022. . . . . . . . . . . . . . . . . . . . . . . . . 50
APPENDIX TABLES
Table A-1. Income Summary Measures by Selected Characteristics: 2021 and 2022 . . . . . . . . . . . . . . . . . . . . . 15
Table A-2. Households by Total Money Income, Race, and Hispanic Origin of Householder: 1967 to 2022. . 16
Table A-3. Income Distribution Measures Using Money Income and Equivalence-Adjusted Income:
2021 and 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Table A-4a. Selected Measures of Household Income Dispersion: 1967 to 2022. . . . . . . . . . . . . . . . . . . . . . . . . . 32
Table A-4b. Selected Measures of Household Income Dispersion: 1967 to 2022. . . . . . . . . . . . . . . . . . . . . . . . . . 34
Table A-5. Selected Measures of Equivalence-Adjusted Income Dispersion: 1967 to 2022. . . . . . . . . . . . . . . . 36
Table A-6. Earnings Summary Measures by Selected Characteristics: 2021 and 2022. . . . . . . . . . . . . . . . . . . . 39
Table A-7. Number and Real Median Earnings of Total Workers and Full-Time, Year-Round Workers
With Earnings by Sex and Female-to-Male Earnings Ratio: 1960 to 2022. . . . . . . . . . . . . . . . . . . . 40
Table B-1. Post-Tax Household Income Summary Measures by Selected Characteristics: 2021 and 2022 . . 44
Table B-2. Summary Measures by Selected Characteristics Using Money Income and
Post-Tax Income: 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Table B-3. Distribution Measures Using Post-Tax Income and Equivalence-Adjusted
Post-Tax Income: 2021 and 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Table B-4. Distribution Measures Using Money Income, Post-Tax Income, Equivalence-Adjusted Income,
and Equivalence-Adjusted Post-Tax Income: 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Table C-1. Historical Median Income Using Alternative Price Indices: 1967 to 2022. . . . . . . . . . . . . . . . . . . . . . 52
Denotes a statistically
significant change
Z Rounds to zero.
1
Householders aged 25 and older. In 2022, the median household income for this group was $75,980.
Note: Statistically significant indicates the change is statistically different from zero at the 90 percent confidence level. Margins
of error and other related estimates and notes are available in Table A-1. Information on confidentiality protection, sampling error,
nonsampling error, and definitions is available at <https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar23.pdf>.
Source: U.S. Census Bureau, Current Population Survey, 2022 and 2023 Annual Social and Economic Supplements (CPS ASEC).
110,000 $108,700
100,000
90,000
80,000 $81,060
Asian
$74,580
70,000
White, not Hispanic $62,800
60,000
All races $52,860
50,000
Hispanic (any race)
40,000
Black
30,000
20,000
10,000
0
1959 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2022
Note: The data for 2017 and beyond reflect the implementation of an updated processing system. The data for
2013 and beyond reflect the implementation of the redesigned income questions. Refer to Table A-2 for historical
race footnotes. The data points are placed at the midpoints of the respective years. Median household income data
are not available prior to 1967. Income is in 2022 dollars, adjusted using the C-CPI-U (2000-2022) and R-CPI-U-RS
(pre-2000). More information on the inflation adjustment and recessions is available in Appendix A. Information on
confidentiality protection, sampling error, nonsampling error, and definitions is available at
<https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar23.pdf>.
Source: U.S. Census Bureau, Current Population Survey, 1968 to 2023 Annual Social and Economic Supplements
(CPS ASEC).
A-1).17 Foreign-born individuals percent, 3.8 percent, and 3.2 metropolitan areas, those out-
can be classified into two catego- percent, respectively), while real side principal cities experienced
ries: those who are naturalized median household income in the a decrease in median household
U.S. citizens and those who are South was not statistically dif- income of 3.0 percent, while the
not U.S. citizens. Neither group ferent from 2021 (Figure 1 and median for those inside principal
experienced a statistically sig- Table A-1). 20 Median household cities was not statistically differ-
nificant change in their median incomes were highest in the West ent from 2021. 24 Households inside
household income between 2021 ($82,890) and the Northeast metropolitan areas but outside
and 2022.18 ($80,360), followed by the principal cities had the highest
Midwest ($73,070) and the median income ($83,230), fol-
Households maintained by natu-
South ($68,230). 21 lowed by households inside prin-
ralized citizens had the high-
cipal cities ($69,940). Households
est median household incomes Residence22 outside metropolitan areas
in 2022 ($80,760), followed by
In 2022, real median household had the lowest median income
native-born individuals ($75,210)
income for households inside met- ($55,960).
and then noncitizens ($62,030).
ropolitan statistical areas (MSAs)
Educational Attainment25
Region19 declined by 2.6 percent. The 2022
real median income of households From 2021 to 2022, among
Between 2021 and 2022, the
outside of metropolitan areas was householders aged 25 and over,
Midwest, Northeast, and West
not statistically different from real median incomes declined
experienced a decrease in real
2021. 23 Among households inside for those who obtained at least a
median household income (4.7
Summary Measures
Gini index of
income inequality 0.474 0.467 -1.5
Income percentile ratios:
90th/10th 10.89 10.37 -4.8
90th/50th 2.81 2.71 -3.4
50th/10th 3.88 3.82 -1.5
Denotes a statistically
significant change
Note: Percent change estimate may be different due to rounded components. Statistically significant indicates the change is
statistically different from zero at the 90 percent confidence level. Margins of error and other related estimates are available in
Table A-3. Information on confidentiality protection, sampling error, nonsampling error, and definitions is available at
<https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar23.pdf>.
Source: U.S. Census Bureau, Current Population Survey, 2022 and 2023 Annual Social and Economic Supplements (CPS ASEC).
percent to 8.2 percent), and the the top 5 percent of households percentiles for income years 1967
third quintile (from 13.9 percent to were not statistically significant to 2022. In 2022, households in
14.0 percent). The share of aggre- between 2021 and 2022. the lowest quintile had incomes
gate household income decreased of $30,000 or less. Households in
Table A-4a provides the income
in the highest quintile (from 52.7 the second quintile had incomes
limits for each decile and house-
percent to 52.1 percent). 33 The from $30,001 to $58,020; those
hold income ratios at selected
changes in the fourth quintile and in the third quintile had incomes
Full-Time, Year-Round
Workers $60,070 -1.3
Men $62,350 -5.5
Women $52,360 -5.2
Denotes a statistically
significant change
Note: Statistically significant indicates the change is statistically different from zero at the 90 percent confidence level. Margins of error
and other related estimates and notes are available in Table A-6. Information on confidentiality protection, sampling error, nonsampling
error, and definitions is available at <https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar23.pdf>.
Source: U.S. Census Bureau, Current Population Survey, 2022 and 2023 Annual Social and Economic Supplements (CPS ASEC).
million workers. This is the second year-round also decreased by 1.3 men decreased 4.0 percent from
consecutive year that the compo- percent from 2021. 2021, and the decline for women
sition of the workforce has shifted was 2.2 percent (Figure 4 and
to full-time, year-round work after Workers by Sex Table A-6).41
a steep decline due to the pan- Looking at the details of median
The median earnings of men
demic. In 2022, 71.0 percent of earnings and worker composition
($62,350) and women ($52,360)
workers were employed full-time, by sex can add more context to
who worked full-time, year-round
year-round, up slightly from 70.2 the annual changes experienced
decreased by 5.5 percent and 5.2
percent in 2019, prior to the pan- by the total working population.
percent, respectively, between
demic. The real median earnings Between 2021 and 2022, the num-
2021 and 2022 (Figure 4 and
of all workers decreased by 2.2 ber of male and female workers
Table A-6).42 The number of male
percent between 2021 and 2022. increased by 1.6 percent and 1.8
full-time, year-round workers
The 2022 real median earnings percent, respectively.40 The real
increased by about 2.2 million
of those who worked full-time, 2022 median earnings of working
90 90.4 million
80 80.5 million
70
68.6 million
60
Male workers
52.8 million
50
Male full-time,
year-round workers
40
30 Female workers
20
Female full-time,
10
year-round workers
0
1959 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2022
Note: Refer to Table A-7 for historical footnotes. The data points are placed at the midpoints of the respective years.
Data on earnings and counts of full-time, year-round workers are not readily available before 1960 and 1967,
respectively. Data are for people aged 14 and older for years prior to 1980. More information on recessions is available
in Appendix A. Information on confidentiality protection, sampling error, nonsampling error, and definitions is available
at <https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar23.pdf>.
Source: U.S. Census Bureau, Current Population Survey, 1968 to 2023 Annual Social and Economic Supplements
(CPS ASEC).
between 2021 and 2022, while the (1.7 percent increase). The share while the change in the share of
increase in the number of their of female workers employed full- male workers employed full-time,
female counterparts was approxi- time, year-round increased to 65.6 year-round was not significant.
mately 1.8 million (Figure 5 and percent in 2022 from 64.5 percent The 2022 share of female workers
Table A-6).43 In 2022, the share in 2021 (1.7 percent increase).44 employed full-time, year-round is
of male workers employed full- Since 2019, the share of female the largest share ever recorded in
time, year-round increased to 75.9 workers employed full-time, this report.
percent from 74.6 percent in 2021 year-round increased 1.8 percent,
20
0
1959 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2022
Note: Refer to Table A-7 for historical footnotes. The data points are placed at the midpoints of the respective
years. Data on earnings of full-time, year-round workers are not readily available before 1960. Data are for people
aged 14 and older for years prior to 1980. Income is in 2022 dollars, adjusted using the C-CPI-U (2000-2022) and
R-CPI-U-RS (pre-2000). More information on the inflation adjustment and recessions is available in Appendix A.
Information on confidentiality protection, sampling error, nonsampling error, and definitions is available at
<https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar23.pdf>.
Source: U.S. Census Bureau, Current Population Survey, 1961 to 2023 Annual Social and Economic Supplements
(CPS ASEC).
8. Survivor benefits.
9. Disability benefits.
10. Pension or retirement income. assistance, health benefits, and Data users should consider these
11. Interest. subsidized housing. In addition, elements when comparing income
money income does not reflect levels. Moreover, readers should
12. Dividends.
that noncash benefits often take be aware that, for many different
13. Rents, royalties, and estates the form of the use of business reasons, many respondents tend
and trusts. transportation and facilities, full or to misreport or not report their
14. Educational assistance. partial payments by business for income sources.1 Income earned
15. Alimony. retirement programs, medical and from wages or salaries, the
educational expenses, etc. largest component of money
16. Child support.
income, tends to be more
17. Financial assistance from Although the income statistics
accurately reported, and
outside of the household. refer to receipts during the preced-
weighted totals are in line with
18. Other income. ing calendar year, the demographic
other aggregate benchmarks.2
characteristics, such as age, labor
Still, estimates in this report are
Data on income collected in the force status, and household com-
affected by ongoing challenges
CPS ASEC by the U.S. Census position, are as of the survey date.
of nonresponse and misreport-
Bureau cover money income The income of the household does
ing. More details on the impact of
received (exclusive of certain not include amounts received by
nonresponse bias are available in
money receipts such as capi- people who were members during
Appendix D.
tal gains) before payments for all or part of the previous year if
personal income taxes, Social these people no longer resided in
Business Cycles—Recessions
Security, union dues, Medicare the household at the time of the
deductions, etc. Money income interview. The CPS ASEC col- Business cycle peaks and troughs
also excludes tax credits such as lects income data for people who used to delineate the beginning
the Earned Income Tax Credit. are current residents but did not and end of recessions, as shown
Money income does not reflect reside in the household during the in the text box “Business Cycles—
that some families receive non- previous year. Recessions,” are determined
cash benefits such as nutritional by the National Bureau of
AMERICAN INDIAN
AND ALASKA
NATIVE ALONE29
2022. . . . . . . . . . . . . . . . 1,371 100 12.5 10.0 10.2 14.3 17.7 13.2 11.0 5.4 5.6 52,810 4,972 75,220 6,040
2021. . . . . . . . . . . . . . . . 1,430 100 14.4 10.0 9.2 12.2 17.7 11.2 12.3 6.0 7.0 55,100 2,730 78,820 8,332
20202 . . . . . . . . . . . . . . . 1,377 100 10.9 12.7 9.6 13.7 16.5 12.7 12.0 4.7 7.0 55,090 5,067 78,370 6,565
Footnotes provided at end of table.
Estimates reflect the implementation of an updated processing system and should be used to make comparisons to 2018 and subsequent
2
years.
3
The 2014 CPS ASEC included redesigned questions for income and health insurance coverage. All of the approximately 98,000 addresses
were eligible to receive the redesigned set of health insurance coverage questions. The redesigned income questions were implemented to a
subsample of these 98,000 addresses using a probability split panel design. Approximately 68,000 addresses were eligible to receive a set
of income questions similar to those used in the 2013 CPS ASEC, and the remaining 30,000 addresses were eligible to receive the redesigned
income questions. The source of these 2013 estimates is the portion of the CPS ASEC sample that received the redesigned income questions,
approximately 30,000 addresses.
4
The source of these 2013 estimates is the portion of the CPS ASEC sample that received the income questions consistent with the 2013 CPS
ASEC, approximately 68,000 addresses.
5
Implementation of 2010 Census-based population controls. Beginning with 2010, standard errors in this table were calculated using replicate
weights. Before 2010, standard errors were calculated using the generalized variance function.
6
Median income is calculated using $2,500 intervals. Beginning with 2009 income data, the Census Bureau expanded the upper income
intervals used to calculate medians to $250,000 or more. Medians falling in the upper open-ended interval are plugged with “$250,000.” Before
2009, the upper open-ended interval was $100,000 and a plug of “$100,000” was used.
7
Data have been revised to reflect a correction to the weights in the 2005 CPS ASEC.
8
Implementation of a 28,000-household sample expansion.
9
Implementation of 2000 Census-based population controls.
10
Full implementation of 1990 Census-based sample design and metropolitan definitions, 7,000 household sample reduction, and revised
editing of responses on race.
11
Introduction of 1990 Census-based sample design.
12
Data collection method changed from paper and pencil to computer-assisted interviewing. In addition, the 1994 CPS ASEC was revised
to allow for the coding of different income amounts on selected questionnaire items. Limits either increased or decreased in the following
categories: earnings limits increased to $999,999; Social Security limits increased to $49,999; Supplemental Security Income and public
assistance limits increased to $24,999; veterans’ benefits limits increased to $99,999; child support and alimony limits decreased to $49,999.
13
Implementation of 1990 Census-based population controls.
14
Implementation of a new CPS ASEC processing system.
15
Recording of amounts for earnings from longest job increased to $299,999. Full implementation of 1980 Census-based sample design.
16
Implementation of Hispanic population weighting controls and introduction of 1980 Census-based sample design.
17
Implementation of 1980 Census-based population controls. Questionnaire expanded to show 27 possible values from 51 possible sources of
income.
18
First year medians were derived using both Pareto and linear interpolation. Before this year, all medians were derived using linear
interpolation.
19
Some of these estimates were derived using Pareto interpolation and may differ from published data, which were derived using linear
interpolation.
20
Implementation of a new CPS ASEC processing system. Questionnaire expanded to ask 11 income questions.
21
Full implementation of 1970 Census-based sample design.
22
Introduction of 1970 Census-based sample design and population controls.
23
Implementation of a new CPS ASEC processing system.
Note: Estimates may differ from previous publications due to additional rounding implemented to protect respondent privacy. Margins of error
are available via email at <sehsd.isb.list@census.gov>.
Source: U.S. Census Bureau, Current Population Survey, 1968 to 2023 Annual Social and Economic Supplements (CPS ASEC).
The income estimates in the main calendar year 2022.1 For post-tax Table B-2 compares median house-
sections of this report are based poverty estimates, refer to the hold money income estimates
on the concept of money income. Supplemental Poverty Measure (which are pretax) to post-tax
Money income is pretax, which estimates in the report “Poverty in estimates by demographic char-
means it does not account for tax the United States: 2022.”2 acteristics of the householder in
liabilities or tax credits. Tax policies 2022. Accounting for all taxes and
In 2022, several tax policies
have an important effect on the credits reduced median house-
enacted by the American Rescue
total resources available to house- hold income by 13.9 percent in
Plan Act (ARPA) in 2021 lapsed,
holds for consumption, and an 2022, compared to a 7.7 percent
including: an expansion of the
income concept that accounts for reduction in 2021. In 2022, all
Earned Income Tax Credit for filers
these costs and benefits is also an demographic groups showed
without children and full refund-
important measure of household statistically significant decreases
ability of the Child Tax Credit and
wellbeing. in median post-tax income relative
Child and Dependent Care Credit.
to pretax income. This contrasts
This appendix presents post-tax In 2020 and 2021, most households
with 2021, when three groups of
household income estimates and also received Economic Impact
households (female householders
inequality measures for 2021 and Payments (EIP), but no such pay-
with no spouse present, those with
2022. These estimates are sum- ments were issued in 2022.3 The
a householder aged 25 and over
marized in Tables B-1 through expiration of these policies left
with no high school diploma, and
B-4. Post-tax income is defined as households with substantially
those maintained by noncitizens)
money income net of federal and less federal assistance than they
showed an increase in post-tax
state taxes and credits, payroll received in prior years. In contrast
income relative to pretax income.5
taxes (FICA), and temporary cash to the direction of federal tax pol-
payments administered by tax icy, a number of states increased Table B-3 presents post-tax
agencies, like rebates or stimulus assistance to households. Over 20 inequality estimates for 2021 and
payments. states issued income tax rebates 2022. In contrast to the 1.2 per-
to their residents, and nine states cent decrease in the Gini index
Since the Current Population
expanded their state EITC and using pretax income between 2021
Survey Annual Social and
child tax credit programs.4 and 2022 (Table A-3), the annual
Economic Supplement (CPS ASEC)
percent change in the Gini index
does not collect information on On net, the contraction in fed-
calculated by post-tax income
taxes, the Census Bureau relies eral tax programs led to a sub-
increased 3.2 percent in 2022. In
on a tax calculator to simulate stantial decline in real post-tax
2022, shares of aggregate post-
federal and state taxes paid and income between 2021 and 2022.
tax income exhibited a statisti-
credits received. Post-tax income Real median post-tax household
cally significant change at each
estimates used in this appendix income in 2022 was 8.8 percent
quintile. The lowest, second, third,
and the Supplemental Poverty lower than in 2021. Refer to Table
and fourth quintiles each showed
Measure are based on output from B-1 for changes in post-tax median
a decline, while the highest quin-
the CPS ASEC tax model. These income between 2021 and 2022 by
tile and the top 5 percent each
simulations include federal and selected demographic characteris-
showed an increase.6
state income taxes, as well as FICA tics of the householder.
taxes, and incorporate all changes
in federal and state tax laws for
To accurately assess changes in This year marks the first in which announcement of the change
income and earnings over time, it the Census Bureau used the and additional resources posted
is necessary to adjust for changes C-CPI-U to adjust historical income at <www.census.gov/topics/
in the cost of living, or inflation. estimates for inflation. In prior income-poverty/income/guidance/
There are multiple inflation mea- years, this report relied on the alternative-inflation.html>.
sures—each with its own function, same series as the current method,
This appendix illustrates the effect
scope, coverage, and formula— but used the R-CPI-U-RS from 1978
of alternative inflation adjust-
available to the U.S. Census Bureau onward—hereafter referred to as
ments by comparing estimates of
for this purpose. Estimates of the “prior method.” The Census
changes in real income using the
changes in real income and earn- Bureau has considered moving
current series, the prior series, and
ings are sensitive to the price index toward a “chained-type” price
a series that uses the Personal
the Census Bureau chooses to use index like the C-CPI-U to adjust
Consumption Expenditures Price
for this adjustment, especially over its historical income and earnings
Index (PCEPI) produced by the
longer periods. estimates for several years. For the
Bureau of Economic Analysis
last 3 years, the annual “Income
Price levels in the United States in (BEA), to adjust income estimates
in the United States” report has
2022 were especially elevated rela- for inflation before 2000.
included an appendix presenting
tive to previous years. Therefore, historical median income
adjustment for inflation is particu- Alternative Price Indexes
estimates adjusted for inflation
larly important when analyzing using alternative indices and a The R-CPI-U-RS retroactively
income changes between prior request for public feedback about incorporates the numerous
years and 2022. which index the agency should improvements made to the most
use. In 2022, the Census Bureau well-known and widely used infla-
This report uses the Chained
solicited feedback from numerous tion index, the Consumer Price
Consumer Price Index for All Urban
stakeholders and experts about Index for All Urban Consumers
Consumers (C-CPI-U), produced
transitioning to this alternative (CPI-U). Despite the improvements
by the Bureau of Labor Statistics
price series. This solicitation made to the CPI-U and incorpo-
(BLS), to adjust income and earn-
included publishing a working rated into the R-CPI-U-RS, neither
ings estimates for inflation from
paper documenting the effects of measure fully accounts for how
2000 onwards.1 To adjust income
alternative inflation adjustments individuals shift consumption in
and earnings estimates for inflation
and discussing production response to changes in relative
between 1978 and 2000, the report
considerations in switching to a prices; both measures thereby risk
uses the Consumer Price Index
new measure, as well as multiple overstating increases in the cost of
Retroactive Series for all Urban
public presentations and posting living. Inflation measures that bet-
Consumers All Items (R-CPI-U-RS),
a Federal Register Notice (FRN). ter account for this substitution—
also produced by BLS.2 For years
Informed by comments received including the C-CPI-U and PCEPI—
1967 through 1977, the Census
from these presentations and are known as “chained” measures
Bureau uses inflation estimates
submissions to the FRN, the and are widely considered to be
from the CPI-U-X1 series, an exper-
Census Bureau decided to adopt less biased measures of price-
imental series that preceded the
use of the C-CPI-U beginning adjusted income and earnings.
R-CPI-U-RS.3 For prior years, the
Census Bureau uses a backwards this report year for historical
The C-CPI-U relies on the same
projection of the R-CPI-U-RS, income estimates back to 2000.
sample and consumption data
assuming the same ratio between The inflation measures used to
as the CPI-U but uses a different
the R-CPI-U-RS and CPI-U as there adjust income estimates before
formula and set of expenditure
was in 1967. Hereafter, this appen- 2000 remains unchanged. For
weights than the CPI-U in order to
dix refers to this series as the “cur- more information about the
compute changes in the true cost
rent method.”4 motivation for this change and
of living in adjacent periods. The
the relative merits of alternative
C-CPI-U is available from 2000
inflation indexes, refer to the
onward.
70,000
Prior method
60,000
Current
method
C-CPI-U + PCEPI (prior to 2000)
50,000
40,000
0
1959 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2022
Note: Inflation-adjusted estimates may differ slightly from other published data due to rounding. The data for 2017 and
beyond reflect the implementation of an updated processing system. The data for 2013 and beyond reflect the
implementation of the redesigned income questions. The current method for historical income adjustment uses the
C-CPI-U from 2000 to present, the R-CPI-U-RS from 1978 to 1999, and the CPI-U-X1 from 1967–1977. The prior method
is the same as the current method but uses the R-CPI-U-RS from 1978 onward. Information on confidentiality
protection, sampling error, nonsampling error, and definitions is available at
<https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar23.pdf>.
Source: U.S. Census Bureau, Current Population Survey, 1968 to 2023 Annual Social and Economic Supplements
(CPS ASEC).
The PCEPI tracks changes in the relatively less expensive items, the inflation rate between 2021 and
prices of goods and services pur- indices typically report a lower 2022 according to the R-CPI-U-RS
chased by consumers and those level of inflation and yield higher was 8.09 percent, compared to
buying items on their behalf.5 BEA estimates of real income growth. 7.84 and 6.26 percent accord-
does not collect price or consump- Between 2000 and 2022, the ing to the C-CPI-U and PCEPI,
tion data on its own, so the PCEPI compound annual growth rates in respectively.
aggregates data collected by BLS the C-CPI-U and the PCEPI have
The difference in the annual infla-
to construct the CPIs and Producer been an average of 0.29 percent-
tion rate between the R-CPI-U-RS
Price Indexes (PPIs). Though it age points and 0.38 percentage
and C-CPI-U from 2021 to 2022
largely tracks the same goods and points lower than for the R-CPI-
was smaller than the annual aver-
services, some items in the CPI-U U-RS, respectively.6 The compound
age annual difference over the last
are out of scope for the PCEPI, and annual growth rate in prices as
2 decades, while the difference
vice versa. Like the C-CPI-U, the measured by the R-CPI-U-RS was
between the R-CPI-U-RS and the
PCEPI uses a different formula and 2.47 percent, compared to 2.18
PCEPI was larger.
set of expenditure weights than percent in the C-CPI-U and 2.08
the CPI-U to account for consumer percent in the PCEPI. These small
Implications for Income Estimates
substitution. The PCEPI is available annual differences have a limited
from 1959 onward. effect on estimates of annual Figure C-1 compares historical
growth in real median income, but median household income from
Since the C-CPI-U and PCEPI are
compound to have large effects 1967 onward using three differ-
meant to account for how con-
over longer periods. The annual ent inflation series: (1) the current
sumers shift consumption towards
1.3
0.9
–0.4
–0.7
–2.0
–2.3 –2.3 –2.5
Note: The data for 2017 reflect the implementation of an updated processing system. The C-CPI-U is the Chained
Consumer Price Index for All Urban Consumers. The R-CPI-U-RS is the Consumer Price Index Retroactive Series.
Statistically significant indicates the change is statistically different from zero at the 90 percent confidence level.
Information on confidentiality protection, sampling error, nonsampling error, and definitions is available at
<https://www2.census.gov/programs-surveys/cps/techdocs/cpsmar23.pdf>. Estimates may differ slightly from other
published data due to rounding, incorporation of final values of the C-CPI-U, and accounting for sample overlap in
significance testing.
Source: U.S. Census Bureau, Current Population Survey, 2018 to 2023 Annual Social and Economic Supplements
(CPS ASEC).
method, (2) the prior method, and 1967, the estimate of median in the prior 2 years according to
(3) the C-CPI-U from 2000 onward household income in 2022 dollars the C-CPI-U), but none of these
combined with the PCEPI for prior using the prior method ($54,940) within-year differences are sta-
years. Recall that the C-CPI-U is is 12.6 percent higher than the esti- tistically significant. If the Census
not available for years prior to mate using the C-CPI-U and the Bureau had used C-CPI-U to adjust
2000. PCEPI for earlier years ($48,780). prior year estimates for inflation in
recent reports, neither the direc-
Real median household income Figure C-2 reports estimates of
tion nor statistical significance of
in 2021 adjusted to 2022 dollars annual growth in real median
the changes would be different
using the R-CPI-U-RS ($76,510) household income according to
from the published estimates. And
is not statistically different from the C-CPI-U and the R-CPI-U-RS
if the Census Bureau had used the
the estimate using the C-CPI-U for the past 5 years (from 2017
R-CPI-U-RS to adjust last year’s
($76,330). For 2000, the median onward). Chained price indexes
estimate to measure the change
income estimate in 2022 dollars tend to estimate slightly lower
in real income between 2021 and
adjusted using the R-CPI-U-RS rates of inflation. Annual changes
2022, again, neither the direction
is $71,760, which is 6.4 percent in inflation-adjusted income
nor the statistical significance of
higher than the estimate ($67,470) appears to differ (lower declines in
the change would be different.
adjusted using the C-CPI-U. For the past 3 years and higher growth
SOURCE AND ACCURACY OF with at least one civilian adult, Nonresponse Bias in the CPS
THE ESTIMATES regardless of whether they live off- ASEC
post or on-post. All other armed
The Current Population Survey The Census Bureau administers
forces personnel are excluded.
(CPS) is the longest-running the CPS ASEC each year between
The estimates in this report
survey conducted by the February and April by telephone
are controlled to March 2023
U.S. Census Bureau. The CPS is a and in-person interviews, with
independent national population
household survey primarily used most data collected in March.
estimates by age, sex, race, and
to collect employment data. The In 2020, data collection faced
Hispanic origin. Beginning with
sample universe for the basic CPS extraordinary circumstances due
2020, population estimates are
consists of the resident civilian, to the onset of the COVID-19
based on 2020 Census population
noninstitutionalized population pandemic; the Census Bureau
counts and are updated annually,
of the United States. People in suspended in-person interviews
taking into account births, deaths,
institutions, such as prisons, long- and closed telephone contact
emigration, and immigration.
term care hospitals, and nursing centers. The response rate for
homes, are not eligible to be The estimates in this report (which the CPS basic household survey
interviewed in the CPS. Students may be shown in text, figures, and declined to 73 percent in March
living in dormitories are included tables) are based on responses 2020, from 82 percent in March
in the estimates only if information from a sample of the population 2019. Pre-pandemic response
about them is reported in an and may differ from actual values rates were regularly above 80
interview at their parents’ home. because of sampling variability or percent.
Since the CPS is a household other factors. As a result, apparent
Standard collection procedures,
survey, people who are homeless differences between the estimates
including in-person interviews,
and not living in shelters are not for two or more groups may not
have since resumed, but response
included in the sample. be statistically significant. All
rates remain suppressed relative
comparative statements have
The CPS Annual Social and to the pre-pandemic trend. The
undergone statistical testing and
Economic Supplement (CPS response rate for the CPS basic
are statistically significant at the
ASEC), which estimates in this household survey declined from
90 percent confidence level, unless
report are based on, collects data 72 percent in March 2022 to 69
otherwise noted.
in February, March, and April each percent in March 2023. Since the
year, asking detailed questions In this report, the variances of response rates remain below pre-
categorizing income into over estimates were calculated using pandemic levels, it is important to
50 sources. The key purpose of replication methods. For estimates examine how respondents differ
the survey is to provide timely prior to 2010, or as noted in from nonrespondents, as this
and comprehensive estimates historical tables, the Generalized difference could affect estimates.
of income, poverty, and health Variance Function (GVF) method Using administrative data,
insurance and to measure change was used. More Information on Census Bureau researchers have
in these national-level estimates. replicate weights, standard errors, documented that nonrespondents
income top-coding and data in the 2020 to 2023 surveys
The CPS ASEC collects data in
swapping on the public-use file, are less similar to respondents
the 50 states and the District
and changes to the CPS ASEC than in earlier years. Notably,
of Columbia; these data do not
data file from the prior year is respondents from 2020 to 2023
represent residents of Puerto
available at <https://www2.census. had relatively higher income
Rico or the U.S. Island Areas.1 The
gov/programs-surveys/cps/ than nonrespondents. For more
2023 CPS ASEC sample consists
techdocs/cpsmar23.pdf>. details on how sample differences
of about 89,000 addresses.
and the associated nonresponse
The CPS ASEC includes military
bias impact income and official
personnel who live in a household