Indicator 21. Distribution of Population by Education and Income

Among U.S. 25- to 64-year-olds whose highest level of attainment was upper secondary education, 38 percent earned more than the country's median income in 2008, lower than in all other reporting G-8 countries. Among U.S. adults who had completed academic higher education, 69 percent earned more than the median income in 2008; the corresponding per- centages in the other G-8 countries ranged from 67 percent in Canada to 76 percent in France.

This indicator compares the 2008 income distributions of adults ages 25 to 64 at three different levels of educational attainment: lower secondary education or below, upper secondary education,²⁴ and academic higher education. Income comparisons are made relative to each country's respective median income. For instance, in 2008, the median annual income in the United States for people age 15 and older was about $31,000 (U.S. Census Bureau 2009); those earning more than two times the U.S. median income would have had an average annual income of over $62,000, and those earning at or below half of the U.S. median income would have had an average annual income of $15,500 or less. As shown in this indicator, in all reporting G-8 countries, adults with a higher level of education tended to earn more than those with a lower level of education.

Among U.S. 25- to 64-year-olds whose highest level of educational attainment was lower secondary education or below, 16 percent earned more than the median income in 2008; this percentage was lower than that in any other reporting G-8 country, with percentages ranging from 21 percent in the United Kingdom to 40 percent in Germany (figure 21-1). Two percent of U.S. adults with this level of education earned more than two times the median income; the corresponding percentages in the other G-8 countries ranged from 1 percent in the United Kingdom to 7 percent in Italy and Canada (table 21-1). In contrast, 44 percent of U.S. adults with a lower secondary education or below earned at or below half of the median income, which was higher than in any other reporting G-8 country, with percentages ranging from 18 percent in France and Italy to 39 percent in Canada.

Among U.S. 25- to 64-year-olds whose highest level of educational attainment was upper secondary education, 38 percent earned more than the median income in 2008; this percentage was lower than that in any other reporting G-8 country, with percentages ranging from 41 percent in the United Kingdom to 56 percent in Italy (figure 21-1). (Only in Italy did more than half of the adults with this level of education earn more than the median income.) Eight percent of U.S. adults with an upper secondary education earned more than two times the median income; the corresponding percentages in the other G-8 countries ranged from 5 percent in Germany and France to 13 percent in Italy (table 21-1). In contrast, 24 percent of U.S. adults with this level of education earned at or below half the median income; in the other G-8 countries, the corresponding percentages ranged from 9 percent in Italy to 29 percent in Japan and Canada.

Among U.S. 25-to 64-year-olds who had completed academic higher education, 69 percent earned more than the median income in 2008; the corresponding percentages in the other G-8 countries ranged from 67 percent in Canada to 76 percent in France (figure 21-1). Thirty percent of U.S. adults with this level of education earned more than two times the median income; the corresponding percentages in the other G-8 countries ranged from 27 percent in France and Italy to 35 percent in Japan (table 21-1). In contrast, 12 percent of U.S. adults who had completed academic higher education earned at or below half the median income; the corresponding percentages in the other G-8 countries ranged from 6 percent in France to 17 percent in Canada.

Definitions and Methodology

Income refers to pretax income.

As shown in the table and figure, education levels are defined according to the 1997 International Standard Classification of Education (ISCED97). For more information on the ISCED97 levels, see appendix A. Individuals whose highest level of education is academic higher education have completed at least a first university degree program, which prepares students for advanced research and highly qualified professions. First university degree programs vary in duration in different countries in different programs of study. In the United States, the first university degree corresponds to a bachelor's degree; it excludes associate's degrees.

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²⁴ In this indicator, the category of “upper secondary education” also includes postsecondary nontertiary programs. See figure 21-1 and appendix A for more information on education levels.