11/9/2015 – Why income inequality grows as people age (CBS MoneyWatch)

A recent study by economists at the Federal Reserve Bank of New York attempts to untangle these two potential causes of increasing wage and salary inequality as households age. They begin by documenting how income changes over time for males aged 25-60 (a similar study for women is underway).

They find that “the median worker in the income distribution experiences about a 38 percent rise in his real earnings between ages twenty-five and sixty. There is an impressive amount of heterogeneity: Workers below the 20th percentile actually experience a decline in earnings, while those in the top 1 percent experience a fifteenfold increase.”

Read the full article in CBS MoneyWatch.