Changes in the incomes of age groups, 1984-89

Area of Science:

• Economics
• Gerontology
• Social Policy

Background:

• Income trends for aged family units have historically shown periods of growth and decline.
• Understanding these trends is crucial for assessing the economic well-being of older populations.

Purpose of the Study:

• To analyze changes in the real median incomes of aged family units during the 1984-1989 period.
• To compare income growth rates for aged versus non-aged units and examine income inequality within aged groups.

Main Methods:

• Analysis of real median income data for aged family units from 1967 onwards.
• Comparison of income ratios between aged and non-aged units.
• Examination of income sources (earnings, pensions, property) and poverty rates among the aged.

Main Results:

• Real median income growth for aged units was substantially lower during 1984-1989 than in prior periods.
• The ratio of aged to non-aged median incomes declined from 1984-1989 after rising since 1970.
• Income gains during 1984-1989 disproportionately benefited high-income aged units, increasing inequality.

Conclusions:

• The 1984-1989 period marked a divergence in income trends for aged family units compared to earlier periods.
• Despite a slight decrease in poverty, the aged population's poverty rates remained higher than other adult groups.
• Shifts in income sources, notably a decrease in property income, characterized the 1984-1989 period for aged units.