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The large decline in Hispanic income in is likely related to Hispanic concentration in the construction industry, which has been particularly hard hit this recession due to the bursting of the housing bubble. The data show that inequality, which has been on the rise since the early s, did not increase in , as the recession hit people all across the income distribution though not equally.
From to , workers at the 20th percentile saw a 6. Workers at the 95th percentile saw an increase of 1. Women who work full-time, full-year are feeling the effects of this recession somewhat more than men with respect to earnings. After increasing by 6. Men working full-time, full-year saw an increase of only 0. However, what is particularly astonishing is the 4.
Most of this decline was among men — 3. This erosion in full-time, full-year workers was equally due to a loss of full-time work shifting to part-time and an erosion of weeks worked. The consequence of both of these trends — lower real earnings and eroded work-time — was a record decline in the annual inflation-adjusted earnings of the median worker — a loss of 4.
Between and , an additional 2. Poverty is now at a higher rate than the country faced four decades ago, in The poverty rate for children, at The rate represents Figure 5 shows the poverty rate over the last 30 years, both overall and for children. Much of the decline in poverty achieved during the business cycle of the s has now been reversed. Overall poverty declined by 1. From to , however, poverty increased overall by 1.
Furthermore, it is important to note that the federal poverty threshold as currently measured is widely understood by poverty researchers to be a vastly outdated and inadequate measure of the income needed to make ends meet. This was up from As with income, poverty changes have varied across racial and ethnic groups, with Hispanics and Asians being particularly hard-hit by increases in poverty in Figure 7 shows percentage-point changes in the poverty rate for various racial and ethnic groups in the and periods.
African Americans in particular have seen big increases in poverty this decade; after attaining the lowest poverty rate on record in Hispanic and Asian poverty rates increased by 1.
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