Indicator 29: Distribution of Population by Education and Income

G-20 Countries Included: Australia, Brazil, Canada, France, Germany, Italy, Republic of Korea, United Kingdom, United States

At each successively higher level of education, there were higher percentages of adults ages 25 to 64 across the reporting G-20 countries who earned more than the median income, as well as who earned more than twice the median income, than their counterparts with less education.

This indicator examines the relationship between education and income among adults ages 25 to 64 in the G-20 countries. It compares the percentages of adults with different levels of education at different points on the income distribution, including those who earn more than the median income in their countries, as well as those at the extremes of distribution ( i.e., below half of the median income and more than twice the median income).¹³ The education levels examined are lower secondary education or below, upper secondary education, and academic higher education. Income comparisons are made relative to each country's respective median income and are generally for 2011.

In all reporting G-20 countries, higher levels of education were associated with higher income (as well as lower rates of low income). At each successively higher level of education, there were larger percentages of adults ages 25 to 64 who earned more than the median income and more than twice the median income than their counterparts with less education (as well as smaller percentages of adults who earned at or below half of the median income) (figure 29-1 and table 29-1).

Among U.S. 25- to 64-year-olds whose highest level of educational attainment was lower secondary education or below, 15 percent earned more than the median income in 2011 (figure 29-1). The U.S. percentage was lower than that in any other G-20 country reporting data, where the percentages ranged from 16 percent in the Republic of Korea and the United Kingdom to 46 percent in Brazil. Three percent of U.S. 25- to 64-year-olds with this level of education earned more than two times the country's median income (table 29-1). The corresponding percentages in the other G-20 countries ranged from 1 percent in, again, the Republic of Korea and the United Kingdom to 13 percent in Brazil. In contrast, 47 percent of such U.S. adults earned at or below half of the country's median income, which was a higher rate than that in any other G-20 country reporting data, where the percentages ranged from 23 percent in Brazil to 37 percent in the United Kingdom.

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 2011 (figure 29-1). The U.S. percentage was lower than that in any other G-20 country reporting data except the Republic of Korea, which also had 38 percent. The corresponding percentages in the other G-20 countries ranged from 40 percent in the United Kingdom to 54 percent in Italy. (Italy was the only reporting G-20 country in which more than half of the adults with an upper secondary education earned more than the country's median income.) Eight percent of U.S. 25- to 64-year-olds with an upper secondary education earned more than two times the country's median income (table 29-1). The corresponding percentages in the other G-20 countries ranged from 5 percent in Germany, France, and the United Kingdom to 32 percent in Brazil. In contrast, 26 percent of such U.S. adults earned at or below half of the country's median income; in the other G-20 countries, the percent-ages ranged from 6 percent in Brazil to 27 percent in Canada.

Among U.S. 25-to 64-year-olds who had completed academic higher education, 68 percent earned more than the median income in 2011 (figure 29-1). The corresponding percentages in the other G-20 countries ranged from 65 percent in Canada to 94 percent in Brazil. Thirty percent of U.S. 25- to 64-year-olds with this level of education earned more than two times the country's median income (table 29-1). The corresponding percentages in the other G-20 countries ranged from 24 percent in France to 74 percent in Brazil. In contrast, 13 percent of such U.S. adults earned at or below half of the country's median income; in the other G-20 countries, the percentages ranged from 2 percent in Brazil to 18 percent in Canada.

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Definitions and Methodologie

Income refers to pretax income.

As shown in the accompanying 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 skilled professions. First university degree programs vary in duration in different countries in different programs of study. In the United States, first university degree programs include bachelor's degree programs, but not associate's degree programs.

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¹³ For example, in 2011, the median annual income for people age 15 and older in the United States was about $27,500 (U.S. Census Bureau, 2014). The subgroup of people in the United States earning more than two times the U.S. median income would have had an average annual income of over $55,000; the subgroup earning at or below half of the U.S. median income would have had an average annual income of $13,750 or less.