Smaller shares of adults are in the lower-income tier based on their disposable (after-tax) income than their gross (pretax) income

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April 20, 2017

Middle Class Fortunes in Western Europe

Smaller shares of adults are in the lower-income tier based on their disposable (after-tax) income than their gross (pretax) income

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Smaller shares of adults are in the lower-income tier based on their disposable (after-tax) income than their gross (pretax) income

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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
Who is ‘middle income’ and ‘upper income’ in Western Europe and the U.S. in 2010?
What it takes to be middle income changes over time
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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