Trends in Household Income, 2000-2006

After adjusting for inflation, aggregate household income in Michigan has been essentially unchanged from 2002 to 2006 (+0.04%), following a sharp decrease from 2000 to 2002 (-6.6%).

Between 2002 and 2006, before adjusting for inflation, there were increases of 11.2% for earnings, 21.4% for Social Security and retirement income, and 9.9% for income from interest, dividends, and rent. Estimated income from public assistance decreased by 2.9%.

After adjusting for inflation, an 8.4% increase in Social Security and retirement income offset a 0.8% drop in earnings, a 13.3% drop in public assistance income, and a 2.0% drop in income from interest, dividends, and rent from 2002 to 2006.

Median household income increased by 7.7 percent from 2002 to 2006. However, this increase was only about half the level required to keep up with inflation. Thus, real median household income was down by 3.8%. The trend for median income differs from the trend for aggregate income because of a continuing decrease in average household size as well changes in income distribution. (Population change is not a significant factor for Michigan, since Michigan's estimated population increased by only 0.4% from 2002 to 2006.)

Source: American Community Survey, 2000-2006.

    Median Household Income in Michigan and the U.S (.xls)
         Chart 1--Michigan vs. U.S.(.pdf)
         Chart 2--Michigan vs. U.S. (.pdf)

     Aggregate Household Income by Component: Michigan (.xls)
         Click here for Statistical Confidence Intervals (.xls)
         Chart--Components of Income (.pdf)