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      Household incomes: the tail is getting longer

      Eugen G Tarnow  September 19 2017 12:07:20 PM
      By Eugen Tarnow, Ph.D.
      Avalon Business Systems, Inc.
      http://AvalonAnalytics.com

      It is frequently stated that income inequality is increasing.  Measuring this is more difficult.  Here I use one measure - the tail of the high-end household income distribution (inflation adjusted to 2017 dollars).  


      This tail is well defined for census data between $60,000-$200,000 and approximately exponential:


      Image:Household incomes: the tail is getting longer

      I can express the exponential in terms of the income difference at which the number of households decrease by half
      :

      Image:Household incomes: the tail is getting longer

      What we see is that the high end tail is getting somewhat wider.


      (There are two points for 2013 because the US Census Bureau changed the way the census was done and there are two different results.
      )
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