Friday, March 23, 2007

Congressional Research Service Report : Who Are the "Middle Class"?

There is no consensus definition of "middle class," neither is there an official government definition. What constitutes the middle class is relative, subjective, and not easily defined. The mid-point in the distribution is the median and in 2005 median household income was $46,326. How far above and below that amount the middle stretches remains the question. The Census Bureau publishes figures breaking the income distribution into quintiles, or fifths. The narrowest view of who might be considered middle class would include those in the middle quintile, those households with income between $36,000 and $57,660. A more generous definition might be based on the three middle quintiles, those households with incomes between $19,178 and $91,705. Surveys suggest that 1% to 3.3% of the population consider themselves to be upper class. Comparing those figures with the income distribution would put the dividing line between middle and upper class close to if not above $250,000. Similarly, survey responses suggest that the lower end of the middle class might be close to $40,000. Much of the legislation considered by Congress is in the name of the so-called "middle class." But there is no consensus definition of middle class. Neither is there an official government definition, and it is not the aim of this report to establish one. What constitutes the middle class is relative, subjective, and not easily defined. Most people likely have decided views as to whether they are middle class. At the same time, those who refer to the middle class have a rough idea whom they have in mind. How closely these two definitions correspond is another matter. In some contexts, the term middle class may refer to a group with shared values or views, but much of the time it is intended to refer to those who fall within a particular range of incomes.Source: Congressional Research Service, Library of Congress

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