Snapshot

Wages and wage-related income are of growing importance to low-income households: Share of income of the non-elderly* bottom fifth accounted for by wage-related income, in-kind income, and cash transfers, 1979–2010

Cash transfers (e.g., Social Security, UI, TANF) In-kind benefits (e.g., SNAP, Medicaid) Wage-related income (wages, benefits, and tax credits [e.g., EITC])
1979 18.7% 13.2% 57.5%
1980 19.4% 13.5% 56.6%
1981 19.2% 13.5% 56.9%
1982 20.3% 14.3% 56.0%
1983 20.0% 15.4% 55.1%
1984 17.1% 13.3% 57.6%
1985 17.9% 14.5% 56.8%
1986 17.1% 14.8% 56.5%
1987 17.6% 16.9% 54.5%
1988 17.1% 16.5% 55.1%
1989 15.2% 16.1% 57.5%
1990 14.5% 17.5% 57.8%
1991 14.6% 17.7% 58.2%
1992 14.3% 17.9% 59.6%
1993 14.1% 18.5% 58.1%
1994 13.7% 18.7% 59.6%
1995 11.9% 16.7% 63.4%
1996 11.6% 16.0% 65.1%
1997 10.7% 14.0% 67.5%
1998 9.6% 13.2% 69.8%
1999 9.3% 12.5% 69.1%
2000 9.1% 12.6% 69.1%
2001 8.6% 15.6% 70.2%
2002 9.5% 15.2% 69.5%
2003 9.0% 15.5% 70.1%
2004 8.6% 15.9% 70.1%
2005 7.5% 15.7% 71.7%
2006 6.7% 15.8% 71.9%
2007 6.6% 16.1% 71.3%
2008 7.7% 16.7% 74.3%
2009 10.2% 18.6% 70.3%
2010 10.5% 18.3% 69.7%
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* Data are derived from weighted average of non-elderly childless households and households with children.

Note: Wages and benefits, cash transfers, in-kind income, and tax credits comprise 98.5 percent of all pretax income for the bottom fifth non-elderly population in 2010. The other 1.5 percent is made up of capital gains, proprietors' income, other business income, interest and dividends, and other income.

Source: Authors' analysis of Congressional Budget Office (2013)

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