More Millennials Reached High Incomes Than Earlier Generations Did
Far fewer earn under $30,000, and they lead past $40,000.
Noahpinion · Roundup #84: Bears on bikesAt ages 36 to 40, more Millennials reached higher incomes, after taxes and government transfers, than earlier generations did at the same age.
The comparison comes from economists Kevin Corinth and Jeff Larrimore, who adjusted for inflation and tallied the share of each age group at different pay levels. Far fewer Millennials earned less than $30,000 a year, in 2019 dollars, than their predecessors. Past $40,000, Millennials outnumber earlier generations across the measured range.
There are two wrinkles. A few more Millennials reported exactly zero income, possibly because they were supported by parents or missed by the data, and incomes above $140,000 were left off the chart because they are hard to measure. The Millennial distribution is also more spread out, meaning gains have been uneven.
The result still undercuts the idea that Millennials were left behind. Government redistribution helped, as America has become more redistributionary, and as economics writer Noah Smith put it, "most Millennials are more comfortable than their parents were."
Questions people ask
Does this mean Millennials are wealthier, not just earning more?
Not necessarily. Income is what people receive in a year after taxes and benefits, while wealth is what they own minus what they owe. Millennials could earn more yet still have lower net worth at the same age if they carry more student debt, bought houses later at higher prices, or saved less.
Why count income after taxes and transfers?
It gives a fuller picture of living standards than paychecks alone. A low-earning worker might receive food assistance, health coverage, or tax credits that raise spendable resources, while a high earner pays taxes that lower them. The United States has become more redistributionary, and this adds to the gains.
Who counts as a Millennial here?
Millennials are generally people born from 1981 to 1996, so those ages 36 to 40 in recent data were born in the mid-to-late 1980s. Researchers compare them with members of Generation X, Baby Boomers, and earlier generations when those older groups were also 36 to 40, with dollars adjusted for inflation.