Wednesday, August 27, 2008

Quintles in motion, the poor move up and the rich

move down:

Link from Professor Perry
From the Census Bureau: Of households in the lowest income quintile in 2001, 28.6% were in a higher quintile in 2003; of those originally in the highest income quintile, 32.1% were in a lower quintile 2 years later.

In other words, in just a two-year period, 2 out of every 7 households in the lowest income quintile (bottom 20%) in 2001 moved up to a higher income group by 2003, and almost 1 out of every 3 households in the top income quintile in 2001 moved to a lower income group by 2003, suggesting significant income mobility over even very short periods of time.