Middle Class Fortunes in Western Europe
Who is ‘middle income’ and ‘upper income’ in Western Europe and the U.S. in 2010?
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- Middle Class Fortunes in Western Europe
- In Western European countries studied, up to eight-in-ten adults live in middle-income households; U.S. has among the highest lower- and upper-income shares
- Countries with higher income inequality have smaller shares of adults who are middle income
- In most countries, shrinking middle-income shares led to rising shares in lower- and upper-income tiers
- Income status of adults improved the most in the Netherlands and Ireland
- Luxembourg households have highest incomes, followed by those of U.S.
- Ireland, Norway leads other countries in growth in household income
- The earnings of households in Luxembourg, Norway and the U.S. lead the earnings of households in other countries in all income tiers
- Compared with the U.S., households at all income tiers in many Western European countries experienced a greater increase in income
- Upper-income households hold a disproportionately high and rising share of aggregate income in most countries
- Up to eight-in-ten adults live in middle-income households in selected countries in Western Europe; the U.S. has the greatest shares in lower- and upper-income households
- Decrease in shares middle-income led to rising shares in lower- and upper-income tiers in most countries
- The income status of adults improved the most in the Netherlands and Ireland
- Households in Luxembourg have the highest income overall, Italy and Spain lag behind
- Ireland and Norway lead other countries in growth in household income
- The earnings of households in Luxembourg, Norway and the U.S. lead the earnings of households in other countries in all income tiers
- In many Western European countries, households in all income tiers experienced a greater increase in income than in the U.S.
- Upper-income households hold a disproportionately high and rising share of aggregate income in most countries
- What it takes to be middle income changes over time
- Smaller shares of adults are in the lower-income tier based on their disposable (after-tax) income than their gross (pretax) income
- Larger shares of adults are in the middle-income tier based on their disposable (after-tax) income than their gross (pretax) income
- Smaller shares of adults are in the upper-income tier based on their disposable (after-tax) income than their gross (pretax) income
- In most Western European countries, lower-income tiers are larger, and middle- and upper-income tiers are smaller, when the U.S. median income is used to define middle-income boundaries
- United Kingdom
- The shares of adults living in middle-income households fell in many countries in Western Europe
- Household incomes in most countries in Western Europe rose faster than in the U.S. from 1991 to 2010
- Share of middle-income adults rises with national household income; U.S. appears an exception
- The middle class in the U.S. is smaller than in Western Europe
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