U S C E N S U S B U R E A U

Helping You Make Informed Decisions

Demographic Programs

U.S. Department of Commerce

Economics and Statistics Administration

U.S. CENSUS BUREAU

Net Worth and Asset Ownership

of Households: 1998 and 2000

Household Economic Studies

Issued May 2003

Current

Population

Reports

Shawna Orzechowski

Peter Sepielli

P70-88

INTRODUCTION through March 2000.3 SIPP collects liability and asset data as a supplement to its Two of the most important defining fac- core questions about labor force partici- tors of economic status in the United pation, income, demographic characteris- States are income and net worth. When tics, and program participation. The pre- considered alone, income—the resources vious report in this series presented data a household or person receives from a for 1995 collected in February-March job, transfer program, or other source— 1995.4

provides an incomplete picture of economic well-being. Only when the wealth

or net worth—the difference between

assets and liabilities—a person or household has at any given time is considered 3

The sample of households in SIPP is divided into

four interview groups called “rotation groups.” Each in conjunction with income does a better month, one of the four rotation groups is interviewed

understanding of economic health and about the previous 4 months (the reference period);

each cycle of interviews fr well-being emerge.11 om all four groups is called a

“wave.” The asset and liability data in this report were

collected in the sixth and twelfth waves of the 1996

This report compares the levels of SIPP panel. For the “1998” figures in this report, data

wealth and asset ownership, such as were collected from the first rotation group in

December 1997 and refer to the last day of November equity in a home, savings accounts, cer- 1997; the second rotation group was interviewed in

tificates of deposit, vehicle ownership, January of 1998 and their data refer to December 1997,

and so on. As a result, the data represent a composite and mutual funds, with various socioeco- of the assets and liabilities of the civilian noninstitutionnomic factors, including monthly house- alized population of the United States (excluding people

in group quarters) in November and December, 1997, hold income, in late 1997 and early and January and February, 1998. Similarly, the “2000”

1998, and in late 1999 and early 2000 figures were collected from the first rotation group in

(“1998” and “2000” in this report).2 December 1999 and refer to the last day of November The 1999; and so on. Accordingly, the “2000” data repredata are from the 1996 panel of the sent a composite of the assets and liabilities of the civilian noninstitutional population (excluding people in Survey of Income and Program group quarters) in November and December, 1999, and

Participation (SIPP) and represent infor- January and February, 2000.

mation collected from December 1997 4

Data for 1995 were published in the report: 

P70-71 “Household Net Worth and Asset Ownership: through March 1998 and December 1999 1995.” This series of reports from SIPP began with the

publication of P70-7, “Household Wealth and Asset

Ownership: 1984.” Data for 1991 and 1993 were published in P70-34, “Household Wealth and Asset

1 Ownership: 1991,” and P70-47,”Asset Ownership of For a further discussion of the relationship between Households: 1993,” respectively. wealth and income, see Arthur B. Kennickell, 1999,

“Using Income to Predict Wealth” available at 

www.federalreserve.gov/pubs/oss/oss2/method.html.

2

See box “Key Definitions and Explanations” on 

page 3 for the definitions of the concepts (for example,

net worth) used throughout this report. The estimates in

this report are based on responses from a sample of the

population. As with all surveys, estimates may vary

from the actual values because of sampling variation or

other factors. All comparisons made in this report have

undergone statistical testing and are significant at the

90-percent confidence level unless otherwise noted.
2 U.S. Census Bureau

HIGHLIGHTS

(All dollar values in this report are

expressed in 2000 dollars, unless

specified otherwise.)

• Median household net worth

increased from $49,932 in

1998 to $55,000 in 2000.5

• Median household asset values

of stocks, rental property and

Individual Retirement Accounts

(IRA and Keogh accounts) also

experienced significant

increases between 1998 and

2000.

• The median household value

of other financial investments

fell during the same period

from $24,367 to $22,000.

Other financial investments

include mortgages held for

sale of real estate and amount

due from sale of business or

property.

• Median home equity for households was $59,000 in 2000,

significantly higher than the

1998 median household home

equity of $55,263. 

• In 2000, median household net

worth varied from $7,396 for

households in the lowest

income quintile to $185,500

for households in the highest

income quintile.

• In 2000, median household net

worth generally increased with

the age of the householder, rising from $7,240 for householders under the age of 35, to

$108,885 for householders 65

and older. 

5

The median net worth is the amount which

divides the net worth distribution into two

equal groups, one having household net worth

less than the median amount and the other

having net worth above the median. See

Appendix B for a technical description of the

changes in median estimation from earlier

reports in this series.

• In 2000, the household median

net worth was $79,400 for

households with a nonHispanic White householder,

$7,500 for households with a

Black householder, and $9,750

for households with a Hispanic

householder.6 Hispanic households and Black households

had significantly lower net

worth than non-Hispanic White

households, but the difference

between Hispanic and Black

households was not statistically significant.

• Married-couple households, the

majority of households, had

the highest median net worth

in 2000: $91,218.

Significantly lower net worth

characterized male householders ($24,659) and female

householders ($23,028).

• In 2000, households with

householders having a job for

the entire 4-month reference

period had a median household net worth of $51,050,

compared with $28,543 for

those with householders having no labor force activity during this time.

ABOUT THIS REPORT 

SIPP periodically collects detailed

wealth data as part of its normal

operation.7 SIPP has a large sample size (approximately 37,000

households in the 1996 panel) that

allows comparisons of the assets

of small groups, especially those

that tend to be underrepresented

in other surveys (such as low

6

Hispanics may be of any race. The race or

Hispanic origin of the householder designates

the race or Hispanic origin of the household. 

7

Other sources for wealth and asset information include the Survey of Consumer

Finances, the National Longitudinal Study, the

Federal Reserves Flow of Funds accounts, the

Panel Study of Income Dynamics, and the

Consumer Expenditure Survey. 

income households).8 Because

SIPP’s sample design uses an

address list that is updated repeatedly through extensive listing procedures, SIPP enjoys a high degree

of population coverage, which

makes its statistical estimates valid

representations of the population.9

SIPP’s design also allows for the

reliable measurement of household

median net worth, the percentage

of households holding a particular

type of asset, and the distribution

of the net worth of households by

asset type. 

The distribution of wealth in the

United States has a large positive

skew, with relatively few households holding a large proportion of

the wealth. For this type of distribution, the median is the preferred

measure of central tendency

because it is less sensitive than

the average (mean) to extreme

observations. The median is also

considerably lower than the average, and provides a more accurate

representation of the wealth and

asset holdings of the typical

household. For example, more

households have a net worth near

the median of $55,000 than near

the average of $182,381.

The median is also preferred

because the concentration of

wealth among relatively few

households affects estimates of

the average household net worth

8

The population represented in this report is

the noninstitutional population, which excludes

people in group quarters. Group quarters are

units consisting of unrelated individuals living

together in living quarters that have separate

rooms but share common facilities such as 

dining halls. Individuals in group quarters

would not normally share financial resources.

The survey’s universe also excludes people in

institutions, people in Puerto Rico, and people

living in military barracks. Members of the

Armed Forces living off post or with their families on post are included if there is at least one

civilian adult living in the household. 

9

See the 1993 SIPP “Source and Accuracy

Statement” and the 1998 SIPP “Quality Profile”

available at the following Web site:

www.sipp.census.gov/sipp/methmain.htm.
U.S. Census Bureau 3

Key Definitions and Explanations

Householder. Survey procedures call for listing first the person (or one of the people) in whose name

the home is owned or rented as of the interview date. If the house is owned jointly by a married couple, either the husband or the wife may be listed first, thereby becoming the reference person, or

householder, to whom the relationship of the other household members is recorded. One person in

each household is designated as the “householder.” The number of householders, therefore, is equal

to the number of households.

Household. A household consists of all people who occupy a housing unit. A house, an apartment or

other group of rooms, or a single room is regarded as a housing unit when it is occupied or intended

for occupancy as separate living quarters; that is, when the occupants do not live and eat with any

other people in the structure and there is either (1) direct access from the outside or through a common hall or (2) a kitchen or cooking equipment for the exclusive use of the occupants.

For this report, the household composition was determined as of the interview date. A household

includes the related family members and all the unrelated people, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit or a

group of unrelated people sharing a housing unit as partners is also counted as a household. The

count of households excludes group quarters. Examples of group quarters include rooming and

boarding houses, college dormitories, and convents and monasteries.

Median income. The median household income is the amount which divides households into two

equal groups, one having incomes above that amount and the other having incomes below that

amount.

Net worth. The household net worth estimates shown in this report are based on the sum of the

market value of assets owned by every member of the household minus liabilities (secured or unsecured) owed by household members. The estimates represent the net worth of households at the end

of the appropriate reference period. The net worth concept is based on the value of all assets minus

all liabilities listed on page 5 (see box “Assets and Liabilities Included In Net Worth”). The major assets

not covered in this report are equities in pension plans, the cash value of life insurance policies, and

the value of home furnishings and jewelry. These items are not covered because it is particularly difficult to obtain reliable estimates of the value of these assets in a household survey.

Median net worth. The median net worth is the amount which divides households into two equal

groups, one having net worth less than that amount and the other having net worth above that

amount.

Average net worth. The average net worth is the average obtained by dividing the total net worth

of a group by the number of households in that group.

Comparison of average and median values of net worth. Average and median values are measures of central tendency of distributions. For symmetric distributions, the average and median values

are the same. For skewed distributions, however, the average and median values differ. The distribution of net worth is skewed with a concentration of households with low values and very few households with high values. In this case, the median is less than average net worth; the large proportion

of values at the low end bring the median down, while less frequent but large values increase the

average. Since averages are more sensitive to extremely high values and the data are sparse at the

upper end of the distribution, medians are used in the analysis in this report.

For a complete listing of definitions and explanations see www.sipp.census.gov/sipp/pubsmain.htm.
4 U.S. Census Bureau

and of the aggregate net worth of

the country made from surveys

not taking this concentration into

consideration.10 To address this

issue, a household survey should

heavily oversample wealthy households to obtain a better representation of the less commonly held

assets. For example, the Survey of

Consumer Finances (SCF), conducted by the Federal Reserve Board,

oversamples households likely to

be wealthy.11 SIPP, however, does

not oversample wealthy households (indeed, it oversamples

lower-income households), and its

estimates of average net worth

and total aggregate net worth are

significantly lower than the estimates from the SCF. For example,

average or mean net worth in

1998 from SIPP was $149,629 (in

1998 dollars), compared with

$282,500 (in 1998 dollars) from

the SCF. The two surveys’ estimates of median household net

worth for the same year were substantially different from each other

but much closer: $47,887, and

$71,600, respectively.12

10The aggregate value of net worth is the

product of the number of households times

average net worth.

11The 1998 SCF was divided into two samples totaling 4,309 families. The first is an area

probability sample, with 2,813 families, that is

similar in construction to the SIPP sample; the

second (called the “list” sample), with 1,496

families, oversamples high income families, as

determined by tax documents from the Internal

Revenue Service. For a detailed description of

the SCF sampling strategies, see Gerhard Fries,

Martha Starr-McCluer and Annika Sunden, “A

Measurement of Household Wealth Using

Survey Data: An Overview of the Survey of

Consumer Finances,” available at the following

Web site www.federalreserve.gov/pubs/oss/

oss2/method.html.

12One reason that the estimates of median

net worth from SIPP and SCF are much closer

than their estimates of average net worth is

that the SCF survey is intended to measure family wealth and is more comprehensive in its

coverage of asset holdings. SIPP does not

measure equity in pension plans, cash surrender value of life insurance policies, and the

value of household furnishings such as

antiques, art, and jewelry. See Appendix A for a

further discussion of differences between SCF

and SIPP. 

Appendix A presents the results of

a study that benchmarked SIPP

estimates against those from the

SCF.

Data in this report are presented in

constant 2000 dollars using the

research series of the Consumer

Price Index for urban consumers

(CPI-U-RS) (Appendix C describes

this methodology). Median household net worth is analyzed by

household income, age, race, ethnicity, type of household, and

labor force activity of the householder. The report also compares

2000 and 1998 homeownership

rates. 

Detailed tables for this and earlier

reports are provided on the

Internet at www.sipp.census.gov/

sipp/pubsmain.htm.

HOUSEHOLD NET WORTH

The median household net worth

in 2000 was $55,000, higher than

in 1998, when it was $49,932.

SIPP data show that net worth fell

from 1984 until 1993, then began

climbing, but did not surpass the

1984 level until 2000 (Table B).

Table A and Figures 1, 2, and 3

provide an overall view of the distribution of asset ownership, the

median value of holdings for asset

owners, and the percentage of

total net worth held in each type

of asset in 2000 and 1998. 

Home equity (the value of the

home minus the mortgage

amounts) constituted the largest

share of household net worth,

accounting for 32.3 percent of

total net worth in 2000. In 2000,

67.2 percent of households reported owning homes with a median

equity of $59,000 in their homes;

up from 66.4 percent and $55,263

in 1998. As also shown in Figure 2

and Figure 3, the percentage of

people owning their own home, as

well as the median value of the

equity in their home, increased

between 1998 and 2000. The

Housing Vacancy Survey estimated

the homeownership rates for the

first quarter of 1998 and 2000 as

65.9 and 67.1 percent, respectively.13

Probably reflecting the stock market boom of the late 1990s, stocks

and shares in mutual funds held

outside IRAs and 401K plans made

up the next largest share of net

worth in 2000—15.6 percent, well

above the share in 401K and Thrift

Savings Plans and interest-earning

assets at financial institutions 

(9.7 and 8.9 percent, respectively).

However, the percentage of households owning interest-earning

assets was far greater than the

percentage that owned stocks or

mutual-fund shares: in 2000, 

65.0 percent of households had

interest-earning assets at financial

institutions, with a median value

of $4,000; while only 27.1 percent

owned stocks or mutual-fund

shares, with a median value of

$19,268.

In 2000, 3.3 percent of households

reported owning other interestearning assets (such as government securities and municipal

bonds), lower than in 1998 

(3.9 percent). In 2000, the median

value of household holdings in

these assets was $29,013, not

significantly different from 1998

($31,281). At the same time, the

percentage of households owning

13The Housing Vacancy Survey provides current information on rental and homeowner

vacancy rates, and characteristics of units available for occupancy. These data are used extensively by public and private sector organizations to evaluate the need for new housing

programs and initiatives. In addition, the rental

vacancy rate is a component of the index of

leading economic indicators and is thereby

used by the federal government and economic

forecasters to gauge the current economic climate. An overview of the survey is available at

www.census.gov/hhes/www/hvs.html.
U.S. Census Bureau 5

Table A.

Asset Ownership Rates for Households, Median Value of Holdings, and the Distribution

of Net Worth by Asset Type: 1998 and 2000

(Excludes residents of group quarters)

1998 2000 (In 2000 dollars)

Asset type Percent of Median value Percent of Median value

households of asset for Percent households of asset for Percent

that own asset owners distribution of that own asset owners distribution of

asset type (dollars) net worth1 asset type (dollars) net worth1

All assets............................ (X) 55,000 100.0 (X) 49,932 100.0

Interest-earning assets at financial

institutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.0 4,000 8.9 63.9 3,854 8.1

Other interest-earning assets ............... 3.3 29,013 1.7 3.9 31,281 2.7

Regular checking accounts ................. 37.5 600 0.3 38.9 521 0.4

Stocks and mutual fund shares ............. 27.1 19,268 15.6 27.1 17,517 18.8

Own home ............................... 67.2 59,000 32.3 66.4 55,263 33.7

Rental property ........................... 4.9 70,000 3.7 5.4 59,434 4.5

Other real estate .......................... 6.6 40,000 3.6 6.5 31,281 3.2

Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85.8 5,875 3.7 85.3 6,073 4.4

Business or profession..................... 10.8 10,000 7.7 11.5 7,299 7.3

U.S. savings bonds . . . . . . . . . . . . . . . . . . . . . . . . 14.7 1,000 0.5 16.3 834 0.6

IRA or Keogh accounts .................... 23.1 24,000 8.6 21.3 19,811 7.9

401K and thrift savings plans ............... 29.9 20,000 9.7 26.8 15,641 8.6

Other financial investments2 ................ 3.9 22,000 1.6 4.7 24,367 2.6

Unsecured liabilities3 . . . . . . . . . . . . . . . . . . . . . . 52.7 4,000 –3.0 54.7 3,649 –3.4

X Not applicable.

1

Individual outliers that highly influenced the mean value for asset categories were topcoded or excluded. The mean is used to calculate the percent distribution. The outlier adjustments to the individual assets and not the totals led to this column not summing to 100 percent. 2

Includes mortgages held for sale of real esate, amount due from sale of business or property, and other financial assets.

3

Because net worth is assets less liabilities, unsecured liabilities are subtracted from the distribution of net worth and are shown as negative.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

Assets and Liabilities Included in Net Worth

I. Assets II. Liabilities

Interest-earning assets held at financial institutions Secured liabilities

Passbook savings account Margin and broker accounts

Money market deposit accounts Mortgages on own home

Certificate of deposit Mortgages on rental property

Interest-earning checking accounts Mortgages on other homes or real estate

Other interest-earning assets Debt on business or profession

U.S. Government securities Vehicle loans

Municipal or corporate bonds Unsecured liabilities Stocks and mutual fund shares Credit card and store bills Rental property Doctor, dentist, hospital, and nursing Mortgages held for sale of real estate home bills Amount due from sale of business or property Loans from individuals Regular checking accounts Loans from financial institutions U.S. savings bonds Educational loans Home ownership Other unsecured liabilities Vacation homes and other real estate

IRA and Keogh accounts

401K and thrift savings plans

Motor vehicles

Other financial assets
6 U.S. Census Bureau

IRA or Keogh accounts increased the median amount of the assets

from 21.3 percent to 23.1 percent, in those vehicles was about the

with the median value of these same in both 1998 and 2000. 

accounts increasing from $19,811

to $24,000. The percentage of

households owning vehicles and

NET WORTH BY MONTHLY

INCOME

The relationship between monthly

income and the net worth of

households is illustrated in Table C

and Figure 4. Household income

is the average monthly income

received from all sources by all

members of a household during

the last month prior to the survey

interview. Both Table C and 

Figure 4 show a strong positive

relationship between the median

net worth of households and

monthly income quintile for 2000

and 1998. 

Median net worth in 2000 ranged

from $7,396 for households in the

lowest quintile to $185,500 for

households in the highest.

Although most quintiles saw

Figure 1.

2000

1998

Unsecured liabilities

Regular checking accounts

U.S. savings bonds

Other financial investments

Other real estate

Other interest-earning assets

Business or profession

Rental property

401K & thrift savings plans

IRA or Keogh accounts

Motor vehicles

Stocks and mutual fund shares

Interest-earning assets at

financial institutions

Own home

Percent of Aggregate Household Net Worth by Asset Type: 2000

(Percent)

33.7

8.1

3.7

4.4

9.7

8.6

3.7

4.5

7.7

7.3

1.7

2.7

3.6

3.2

1.6

2.6

0.5

0.6

0.3

0.4

-3.0

-3.4

32.3

8.9

15.6

18.8

8.6

7.9

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

Table B.

Trends in Net Worth: 1984-2000

(In 2000 dollars)1

Year Number of

households2 Median net worth Standard error

1984................... 86,790 50,018 1,046

1988................... 91,554 49,855 1,086

1991................... 94,692 44,615 961

1993................... 96,468 43,567 883

1995................... 99,088 44,578 525

1998................... 101,782 49,932 521

2000................... 104,644 55,000 567

1

See Appendix C for methodology. For reference period, see appropriate publication at

www.sipp.census.gov/sipp/pubsmain.htm. 2

Number of households in thousands.

Note: SIPP was redesigned for the 1996 panel. The redesign may have affected the comparability of

the data from 1998 and later years with the data from earlier panels.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 Panel.
U.S. Census Bureau 7

Figure 2.

2000

1998

Interest-earning assets at 

financial institutions

Equity in motor vehicles

Equity in own business 

or profession

Stocks and 

mutual fund shares

401K & 

thrift savings plans

IRA or Keogh accounts

Other interest-earning

assets

Equity in own home

Median Value of Asset Holdings for Selected Asset Types: 1998 and 2000

(2000 dollars)

55,263

24,000

19,811

19,268

17,517

10,000

7,299

5,875

6,073

4,000

3,854

59,000

29,013

31,281

20,000

15,641

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

Figure 3.

2000

1998

Interest-earning assets at 

financial institutions

Equity in motor vehicles

Equity in own business

or profession

Stocks and mutual 

fund shares

401K &

thrift savings plans

IRA or Keogh accounts

Other interest-earning

assets

Equity in own home

Asset Ownership Rates of Households for Selected Asset Types: 1998 and 2000

(Percent)

67.2

21.3

23.1

27.1

27.1

11.5

10.8

85.3

85.8

63.9

65.0

66.4

3.9

3.3

26.8

29.9

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.
8 U.S. Census Bureau

increases in median net worth for households in the lowest

between 1998 and 2000, the high- income quintile to 87.1 percent for

est quintile in 2000 had a particu- households in the highest income

larly substantive increase from quintile, and median home equity

$161,174 to $185,500. ranged from $50,000 in the lowest

income quintile to $85,000 in the Asset ownership patterns and highest. median household asset values

also varied by household monthly Ownership rates and median valincome quintile (Table D). For ues for assets other than home

example, the homeownership rate equity also display striking differin 2000 ranged from 46.2 percent ences between the lowest and the

highest income quintiles. In 2000,

these assets included stocks and

mutual fund shares (ownership

rates of 9.2 percent for the lowest

quintile, and 51.6 percent for the

highest), IRA or Keogh accounts

(8.6 percent and 42.6 percent),

401K and thrift savings plans 

(4.7 percent versus 58.2 percent)

and business equity (5.9 percent

rising to 18.5 percent). Median

value of these assets also showed

sharp differences: in 2000, the

value of stocks and mutual fund

shares varied from $11,500 for

the lowest income group to

$30,000 for the highest. Within

income quintiles, the median value

of stocks and mutual fund assets

either increased significantly from

1998 to 2000 or remained about

the same. The lowest income

quintile saw an increase of $3,158

from 1998 to 2000; the fourth

income quintile saw an increase of

$4,488.

Table E shows that the highest

income quintile held the largest

share of asset value regardless of

each asset type in 1998 and 2000.

Its share ranged from 33.3 percent

Table C.

Median Net Worth of Households by Monthly Household

Income Quintile Groups: 1998 and 2000

(Excludes residents of group quarters)

Monthly household income quintile1

2000 1998 (in 2000 dollars)

Number of

households2

Median net

worth

(dollars)

Number of

households2

Median net

worth

(dollars)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . 104,644 55,000 101,782 49,932

Lowest quintile ..................... 20,937 7,396 20,385 6,073

Second quintile..................... 20,937 26,950 20,347 24,841

Third quintile ....................... 20,913 44,400 20,344 40,828

Fourth quintile...................... 20,935 78,001 20,351 68,297

Highest quintile ..................... 20,923 185,500 20,354 161,174

1

Quintile upper limits for 2000 were: lowest quintile - $1,304; second quintile - $2,426; third quintile -

$3,813; fourth quintile - $5,988.

Upper limits for 1998 were: lowest quintile - $1,194; second quintile - $2,006; third quintile - $3,463;

fourth quintile - $5,417. 2

Number of households in thousands.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

Figure 4.

2000

1998

Lowest quintile

Second quintile

Third quintile

Fourth quintile

Highest quintile

Median Net Worth of Households by Monthly Household Income Quintile Groups: 

1998 and 2000

(2000 dollars)

161,174

44,400

40,828

26,950

24,841

7,396

6,073

185,500

78,001

68,297

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.
U.S. Census Bureau 9

for equity in motor vehicles and funds (18.1percent) than did the for all households with household35.4 percent for home equity to lowest quintile (7.7 percent). The ers under the age of 35 was

65.6 percent for other interest- same was true for interest-earning $7,240, significantly lower than

earning assets in 2000. Table E assets not held at financial institu- the median of $120,000 for housealso shows that the composition of tions —2.4 percent for the highest holders aged 70 to 74. Table F

net worth by asset type differed by and 0.4 percent for the lowest. and Figure 5 show the median

income quintiles in 2000. The declined for householders 75 and

share of net worth in home equity older to $100,100.

was highest for the lowest quintile NET WORTH BY AGE Householders under 35 years old (56.2 percent), decreasing to The age of the householder has a tend to have more income, but 24.2 percent for the highest quin- positive relationship with house- lower net worth, than household- tile. In contrast, the highest quin- hold net worth up to age 74. In ers 65 years and older: about tile had a much larger proportion 2000, median household net worth 58.6 percent of the youngest of net worth in stocks and mutual

Table D.

Asset Ownership Rates for Households and Median Value of the Holdings by Monthly

Household Income Quintile for Selected Asset Types: 1998 and 2000

(Excludes residents of group quarters)

Monthly household income quintile1

Interestearning

assets at

financial

institutions

Other

interestearning

assets

Stocks

and

mutual

fund

shares

Equity in

own home

Equity in

motor

vehicles

Equity in

own

business

or

profession

IRA or

Keogh

accounts

401K and

thrift saving

plans

Percent of Households Owning

Assets

2000

Total . . . . . . . . . . . . . . . . . . . . . . . . . 65.0 3.3 27.1 67.2 85.8 10.8 21.3 29.9

Lowest quintile .................... 39.2 1.0 9.2 46.2 63.4 5.9 8.6 4.7

Second quintile .................... 56.4 2.0 17.6 59.3 85.4 7.0 16.1 14.3

Third quintile. ..................... 66.6 3.1 24.4 66.4 91.5 10.0 20.6 28.0

Fourth quintile .................... 76.3 3.2 32.8 77.0 94.1 12.5 27.6 44.3

Highest quintile ....................

1998

86.3 7.0 51.6 87.1 94.8 18.5 42.6 58.2

Total . . . . . . . . . . . . . . . . . . . . . . . . . 63.9 3.9 27.1 66.4 85.3 11.5 21.3 26.8

Lowest quintile .................... 35.0 1.2 9.0 45.5 61.1 6.0 7.3 4.1

Second quintile .................... 53.4 2.3 15.6 58.3 84.8 8.2 14.1 10.9

Third quintile ...................... 66.5 3.5 23.9 66.0 91.8 10.2 19.3 25.0

Fourth quintile .................... 76.7 4.1 33.4 75.9 93.6 13.7 24.6 38.7

Highest quintile ....................

Median Value of Holdings for

Asset Owners

2000 (Dollars)

87.7 8.4 53.5 86.2 95.0 19.1 41.2 55.1

Total . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 29,013 19,268 59,000 5,875 10,000 24,000 20,000

Lowest quintile .................... 2,000 11,605 11,500 50,000 2,832 4,000 20,000 10,000

Second quintile .................... 2,950 23,907 13,000 50,000 3,950 5,000 22,541 7,450

Third quintile ...................... 2,950 25,000 12,000 50,000 5,275 8,000 20,000 11,500

Fourth quintile ..................... 3,650 30,000 17,000 55,000 6,525 10,000 18,000 18,000

Highest quintile ....................

1998 (2000 dollars)

8,000 30,000 30,000 85,000 9,885 15,000 31,000 40,000

Total . . . . . . . . . . . . . . . . . . . . . . . . . 3,854 31,281 17,517 55,263 6,073 7,299 19,811 15,641

Lowest quintile .................... 2,662 13,068 8,342 46,922 3,311 5,214 15,641 6,048

Second quintile .................... 2,920 24,201 10,427 52,135 4,458 5,214 17,726 5,214

Third quintile ...................... 2,419 31,281 12,512 52,135 6,073 7,820 17,726 8,342

Fourth quintile ..................... 3,145 31,281 12,512 52,135 7,247 5,214 15,641 13,555

Highest quintile .................... 6,882 31,281 32,324 70,904 10,688 11,730 26,068 31,281

1

Quintile upper limits for 2000 were: lowest quintile - $1,304; second quintile - $2,426; third quintile -

were: lowest quintile - $1,194; second quintile - $2,006; third quintile - $3,463; fourth quintile - $5,417.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

$3,813; fourth quintile - $5,988. Upper limits for 1998
10 U.S. Census Bureau

households had average monthly indicator of well-being for house- The major type of asset for all age

incomes in the top three income holds, especially for households groups was home equity, accounting

quintiles (above $2,426) in 2000, with retired householders. In for about a third or more of total

while only 34.9 percent of the old- 2000, this measure increased with net worth (Table G). This was folest households were in these quin- age of householder for all age lowed by stocks and bonds and

tiles. However, the youngest groups under 65. The 55-to-64 mutual funds. The proportion of

households had a median net group’s median, $32,304, was net worth held as equity in motor

worth of only $7,240 in 2000, nearly 10 times that of the under- vehicles and in business equity

compared with $108,885 for those 35 group, $3,300, and significant- declined steadily as householders

with a householder 65 and older. ly higher than the 75-and-over aged: in 2000, motor vehicles fell

group’s $19,025. from 9.5 percent of net worth for Median net worth excluding home the youngest group to 3.0 percent equity is another important for the oldest, and business 

Table E.

Distribution of Asset Values for Households and the Distribution of Net Worth by

Monthly Household Income Quintile for Selected Asset Types: 1998 and 2000

(Excludes residents of group quarters)

Monthly household income quintile1

Interest

earning

assets at

financial

institutions

Other

interestearning

assets

Stocks and

mutual

fund

shares

Equity in

own home

Equity in

motor

vehicles

Equity in

own

business

or

profession

IRA or

Keogh

accounts

401K and

thrift saving

plans

Percent Distribution of Asset

Value

2000

Total. . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Lowest quintile ................... 7.1 1.6 3.2 11.5 9.4 3.9 5.9 2.2

Second quintile .................. 14.7 5.0 9.6 14.9 14.7 7.2 13.9 4.2

Third quintile..................... 16.4 10.9 12.1 17.0 18.7 12.3 14.9 10.3

Fourth quintile ................... 19.9 16.2 20.3 21.3 23.9 17.4 21.1 22.5

Highest quintile ..................

1998

41.9 65.6 54.8 35.4 33.3 59.0 44.2 60.8

Total. . . . . . . . . . . . . . . . . . . . . . . . . . 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Lowest quintile ................... 5.5 1.5 3.6 11.1 8.6 6.8 5.4 1.9

Second quintile .................. 12.8 4.3 5.9 14.9 14.5 8.4 13.6 3.2

Third quintile..................... 18.3 10.3 11.3 18.7 19.4 11.2 14.9 9.7

Fourth quintile ................... 21.7 16.7 20.8 21.1 23.8 20.0 14.6 20

Highest quintile ..................

Percent Distribution of Net Worth

2000

41.6 67.2 58.3 34.2 33.7 53.0 46.5 65.1

Total. . . . . . . . . . . . . . . . . . . . . . . . . . 8.9 1.7 15.6 32.3 3.7 7.7 8.6 9.7

Lowest quintile ................... 9.6 0.4 7.7 56.2 5.2 4.6 7.7 3.3

Second quintile .................. 11.8 0.8 13.5 43.4 4.9 5.0 10.8 3.7

Third quintile..................... 10.4 1.3 13.5 39.0 4.9 6.8 9.2 7.1

Fourth quintile ................... 8.4 1.3 15.1 32.6 4.2 6.4 8.6 10.4

Highest quintile ..................

1998

7.9 2.4 18.1 24.2 2.6 9.6 8.1 12.5

Total. . . . . . . . . . . . . . . . . . . . . . . . . . 8.1 2.7 18.8 33.7 4.4 7.3 7.9 8.6

Lowest quintile ................... 6.7 0.6 10.3 56.1 5.7 7.5 6.3 2.4

Second quintile .................. 9.8 1.1 10.4 47.4 6.1 5.8 10.1 2.6

Third quintile..................... 9.9 1.8 14.3 42.1 5.8 5.5 7.9 5.6

Fourth quintile ................... 8.5 2.2 19.1 34.7 5.2 7.2 7.6 8.4

Highest quintile .................. 7.1 3.8 23.1 24.3 3.2 8.2 7.7 11.8

1

Quintile upper limits for 2000 were: lowest quintile - $1,304; second quintile - $2,426; third quintile -

were: lowest quintile - $1,194; second quintile - $2,006; third quintile - $3,463; fourth quintile - $5,417.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

$3,813; fourth quintile - $5,987. Upper limits for 1998
U.S. Census Bureau 11

Table F.

Median Net Worth and Median Net Worth Excluding Home Equity of Households by Age of

Householder and Monthly Household Income Quintile: 1998 and 2000

(Excludes residents of group quarters. Number of households in thousands)

Monthly household

income quintile

Total

Less than

35 years

35 to 44

years

45 to 54

years

55 to 64

years

65 years of age and older

Total

65 to 69

years

70 to 74

years

75 years

of age

and older

2000 Monthly Household

Income Quintile1

All households (thousands) ...... 104,644 22,362 24,717 21,347 14,139 22,079 5,634 5,710 10,735

Median net worth ............... 55,000 7,240 44,275 83,150 112,048 108,885 114,050 120,000 100,100

Excluding home equity ........

Lowest quintile:

13,473 3,300 13,100 23,525 32,304 23,369 27,588 31,400 19,025

Households (thousands) ....... 20,937 4,322 3,333 2,827 2,574 7,882 1,497 1,758 4,626

Median net worth ............. 7,396 500 1,510 5,896 21,000 44,346 32,000 43,230 46,266

Excluding home equity ......

Second quintile:

1,025 0 500 600 1,500 3,500 2,900 2,885 4,000

Households (thousands) ....... 20,937 4,944 3,888 2,958 2,648 6,498 1,498 1,721 3,280

Median net worth ............. 26,950 2,950 7,556 24,750 51,875 114,425 104,800 113,893 116,166

Excluding home equity ......

Third quintile:

6,349 1,500 2,500 4,750 10,150 29,532 22,332 31,513 31,269

Households (thousands) ....... 20,913 5,269 5,090 4,030 2,721 3,803 1,174 1,161 1,467

Median net worth ............. 44,400 8,238 30,703 56,642 100,700 192,500 155,319 201,563 226,263

Excluding home equity ......

Fourth quintile:

12,333 3,550 8,500 12,725 29,210 78,213 52,550 84,900 100,900

Households (thousands) ....... 20,935 4,609 6,010 5,096 2,886 2,334 855 640 839

Median net worth ............. 78,001 19,664 64,450 101,301 157,775 284,565 222,918 312,877 322,785

Excluding home equity ......

Fifth quintile:

26,998 8,775 24,647 35,098 64,750 124,733 93,950 148,792 134,123

Households (thousands) ....... 20,923 3,219 6,395 6,435 3,311 1,563 610 430 522

Median net worth ............. 185,500 57,254 149,887 225,399 316,542 499,015 449,800 452,992 569,000

Excluding home equity ......

1998 Monthly Household

Income Quintile1 (2000 dollars)

98,510 29,850 82,235 123,621 182,430 328,432 237,925 272,681 414,369

All households (thousands) ...... 101,782 23,293 24,224 19,598 12,983 21,684 5,886 5,707 10,091

Median net worth ............... 49,932 6,594 38,226 75,513 103,332 105,413 125,745 111,385 97,206

Excluding home equity ........

Lowest quintile:

12,145 3,519 11,889 20,927 28,649 22,794 32,814 24,208 19,034

Households (thousands) ....... 20,385 4,673 3,255 2,635 2,388 7,435 1,477 1,761 4,197

Median net worth ............. 6,073 104 1,043 6,073 17,205 42,732 35,316 38,918 46,713

Excluding home equity ......

Second quintile:

938 0 386 726 1,408 3,693 2,190 3,493 4,692

Households (thousands) ....... 20,347 5,154 3,865 2,575 2,413 6,341 1,500 1,727 3,114

Median net worth ............. 24,841 2,763 9,097 23,435 55,655 104,661 103,644 100,958 106,560

Excluding home equity ......

Third quintile:

6,177 1,303 3,024 5,020 8,621 26,303 28,253 25,126 27,051

Households (thousands) ....... 20,330 5,312 4,938 3,561 2,583 3,937 1,364 1,119 1,454

Median net worth ............. 40,828 7,755 23,899 52,239 88,543 172,462 157,722 168,229 194,840

Excluding home equity ......

Fourth quintile:

11,828 4,275 8,368 11,918 25,423 64,221 55,674 55,465 85,866

Households (thousands) ....... 20,343 4,885 6,005 4,446 2,668 2,340 884 652 803

Median net worth ............. 68,297 22,292 52,554 80,405 153,606 255,457 237,762 255,119 273,400

Excluding home equity ......

Fifth quintile:

22,909 9,989 20,616 23,924 57,322 115,894 94,964 115,791 135,218

Households (thousands) ....... 20,328 3,269 6,161 6,378 2,932 1,594 646 440 509

Median net worth ............. 161,174 53,120 132,002 201,371 281,656 471,672 367,605 494,099 548,456

Excluding home equity ...... 82,947 27,345 74,039 103,492 156,412 312,879 216,439 341,561 405,350

1

Quintile upper limits for 2000 were: lowest quintile - $1,304; second quintile - $2,426; third quintile -

were: lowest quintile - $1,194; second quintile - $2,006; third quintile - $3,463; fourth quintile - $5,417.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

$3,813; fourth quintile - $5,988. Upper limits for 1998
12 U.S. Census Bureau

equity similarly declined from 

14.0 percent to 2.4 percent. 

As expected, householders 55 to

64 years old had the highest proportion of their net worth in IRA

and Keogh accounts (12.5 percent),

while other age groups had proportions that ranged from 4.1 percent (less than 35 years old) to

about 11.5 percent (65 years and

over). For all ages, about 9.7 percent of net worth was in 401K and

thrift savings plans, but this proportion ranged from18.2 percent

for householders 35 to 44, who

are generally employed, to only

2.7 percent for those 65 years and

over, who were most likely retired

and beginning withdrawals from

their pension savings.14

14 For a further discussion of the relationship between employment and retirement

income see Patrick Purcell, “Retirement Savings

and Household Wealth in 2000: Analysis of

Census Bureau Data,” Congressional Research

Service Report for Congress, Order Code

RL30922, updated December 12, 2002.

NET WORTH BY RACE AND

HISPANIC ORIGIN

Like income and age, the race and

Hispanic origin of the householder

and the level of household net

worth show a significant relationship. In 2000, households with

non-Hispanic White householders

had a median net worth of

$79,400; those with Black householders, $7,500 ; and those with

Hispanic householders, $9,750

(Figure 6).15 Non-Hispanic White

households in every income quintile had significantly higher levels

of median net worth than their

Black and Hispanic counterparts

(Table H). In the lowest quintile in

2000, the median net worth for

non-Hispanic White households

was $24,000; for Black households, $57; and for Hispanic

households, $500; the correspon15 The median net worth difference between

Hispanic and Black households is not statistically significant.

ding figures for the highest 

quintile were $208,023, $65,141,

and $73,032, respectively.

Between 1998 and 2000, the median net worth of non-Hispanic White

householders jumped by over

$8,000, while the median net

worth of Black and Hispanic householders also experienced significant increases.

As Table I illustrates, Black households and Hispanic households

held a significantly higher proportion of their net worth in durable

goods, such as housing and motor

vehicles, than their non-Hispanic

White counterparts. But, Black and

Hispanic households had a significantly lower proportion in financial

assets such as stocks and mutual

fund shares, and in interest-earning assets at financial institutions,

compared with non-Hispanic White

households. The percentage of

net worth in retirement accounts

(IRA, Keogh accounts, 401K, thrift

Figure 5.

Median net worth

Median net worth, excluding home equity

Less than 35 years

35 to 44 years

45 to 54 years

55 to 64 years

65 to 69 years

70 to 74 years

75 years of age and older

Median Net Worth and Median Net Worth Excluding Home Equity of Households by 

Age of Householder: 2000

(2000 dollars)

19,025

114,050

27,588

112,048

32,304

83,150

44,275

13,100

7,240

3,300

23,525

100,100

120,000

31,400

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.
U.S. Census Bureau 13

savings plans) was significantly NET WORTH BY 27.0 percent of the married-couple

higher for non-Hispanic White HOUSEHOLD TYPE figure, while female-householders

households compared with Black had $23,028, or 25.2 percent of Married-couple households had and Hispanic households. the married-couple figure. the largest median net worth in

2000, $91,218 (Figure 7) among Table J expands the data shown in

householders by type. Households Figure 7, and reveals that marriedwith a male-householder had a couple households had the largest

median net worth of $24,659, or median net worth figures in both

Table G.

Percent Distribution of Net Worth of Households by Age of Householder and Asset Type:

1998 and 2000

(Excludes residents of group quarters)

Asset type

2000 1998

Total

Less

than

35

years

35 to

44

years

45 to

54

years

55 to

64

years

65

years

and

over Total

Less

than

35

years

35 to

44

years

45 to

54

years

55 to

64

years

65

years

and

over

Total net worth........... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Interest-earning assets at

financial institutions........... 8.9 10.8 6.8 6.4 7.0 10.9 8.1 8.0 6.7 6.4 6.9 10.9

Other interest-earning assets . . . 1.7 0.3 0.9 1.4 1.7 4.2 2.7 1.1 1.1 1.8 2.1 4.9

Checking accounts ............ 0.3 0.9 0.4 0.4 0.3 0.4 0.4 1.3 0.4 0.4 0.3 0.4

Stocks and mutual fund shares . 15.6 13.7 19.1 16.9 17.2 22.1 18.8 14.2 19.5 17.1 17.2 21.6

Own home ................... 32.3 35.6 39.8 37.7 35.1 49.8 33.7 39.0 32.9 31.1 31.4 36.6

Rental property ............... 3.7 2.6 3.2 4.0 5.2 5.1 4.5 3.1 4.6 3.8 6.6 3.8

Other real estate .............. 3.6 3.2 4.1 4.6 6.1 2.9 3.2 2.6 3.0 3.7 4.1 2.5

Vehicles...................... 3.7 9.5 5.8 4.3 3.5 3.0 4.4 12.8 5.8 4.4 3.3 2.9

Business or profession......... 7.7 14.0 9.8 8.7 6.3 2.4 7.3 17.0 10.5 9.5 6.7 2.5

U.S. savings bonds ............ 0.5 0.6 0.5 0.4 0.7 0.7 0.6 0.6 0.6 0.5 0.4 0.9

IRA or Keogh accounts ........ 8.6 4.1 8.2 7.6 12.5 11.5 7.9 3.7 5.1 7.3 11.7 8.0

401K and thrift savings plans . . . 9.7 12.6 18.2 16.4 12.4 2.7 8.6 11.5 12.4 14.3 8.2 1.7

Other financial investments 1 . . . 1.6 1.7 1.4 1.6 1.5 2.7 2.6 1.6 2.1 1.6 2.9 3.6

Unsecured liabilities 2 .......... –3.1 –15.1 –6.0 –3.6 –1.9 –1.0 –3.4 –16.6 –4.8 –4.0 –2.8 –0.6

1 Includes mortgages held for sale of real esate, amount due from sale of business or property, and other financial assets. 2 Because net worth is assets less liabilities, unsecured liabilities are subtracted from the distribution of net worth and are shown as negative.

Note: Individual outliers that highly influenced the mean value for asset categories were topcoded or excluded. The mean is used to calculate the percent

distribution. The outlier adjustments to the individual assets and not the totals led to columns not summing to 100 percent.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

Figure 6.

Median net worth

Median net worth, excluding home equity

All households

Non-Hispanic 

White Householders

Black householders

Hispanic householders

Median Net Worth and Median Net Worth Excluding Home Equity of Households by 

Race and Hispanic Origin of Householder: 2000

(2000 dollars)

9,750

1,166

79,400

55,000

13,473

22,566

1,850

7,500

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.
14 U.S. Census Bureau

1998 and 2000 in all age cate- NET WORTH BY was not significantly different from

gories. Married-couple households EMPLOYMENT STATUS 1998 ($1,043). For those without

had median net worth that was labor force activity (not working, The median net worth in both generally two or three times as not looking for work, and not on 2000 and 1998 varied by the large as for other types of house- layoff), a group that includes many employment status of the house- holds. The net worth for female retired people, the median was holder. The median for all householders trailed that for male $28,543 ($20,562 in 1998). households with householders householders in the two youngest under 65 years of age in 2000 was age categories, but was not signifi- $41,692 ($35,890 in 1998) cantly different in the two oldest. (Table K). For householders who

had a job for the entire 4 months

covered in the SIPP survey, the

median was $51,050 ($45,922 in

1998). The median for those who

did not have a job during this

time, but who looked for work or

were on layoff, was $3,250 which

Table H.

Median Net Worth and Median Net Worth Excluding Home Equity of Households by

Monthly Household Income Quintile and Race and Hispanic Origin of Householder:

1998 and 2000

(In 2000 dollars. Excludes residents of group quarters)

Monthly household income quintile1

Total Non-Hispanic White Black Hispanic origin 2

2000 1998 2000 1998 2000 1998 2000 1998

All households (thousands) .............. 104,644 101,782 79,562 78,140 12,808 12,156 9,264 8,587

Median measured net worth (dollars) ..... 55,000 49,932 79,400 70,954 7,500 6,200 9,750 7,189

Excluding home equity ................

Net Worth by Income

Lowest quintile:

13,473 12,440 22,566 20,106 1,166 1,024 1,850 1,823

Households (thousands) .............. 20,937 20,385 13,992 13,529 4,007 3,998 2,314 2,316

Median measured net worth (dollars) . . . 7,396 6,073 24,000 18,979 57 (NA) 500 521

Excluding home equity ..............

Second quintile:

1,025 938 3,466 2,945 (NA) (NA) 50 21

Households (thousands) .............. 20,937 20,347 15,274 15,010 2,943 2,771 2,296 2,091

Median measured net worth (dollars) . . . 26,950 24,841 48,500 44,373 5,275 5,709 5,670 3,493

Excluding home equity ..............

Third quintile:

6,349 6,177 10,825 9,489 1,125 1,043 1,500 1,044

Households (thousands) .............. 20,913 20,344 16,054 15,871 2,436 2,250 1,905 1,779

Median measured net worth (dollars) . . . 44,400 40,828 59,500 56,460 11,500 11,816 11,200 8,546

Excluding home equity ..............

Fourth quintile:

12,333 11,828 17,400 16,878 3,350 3,088 2,650 4,171

Households (thousands) .............. 20,935 20,351 16,724 16,303 1,917 1,935 1,669 1,504

Median measured net worth (dollars) . . . 78,001 68,297 92,842 81,823 32,600 24,037 36,225 24,536

Excluding home equity ..............

Highest quintile:

26,998 22,909 34,435 29,920 8,625 7,664 10,543 8,349

Households (thousands) .............. 20,923 20,354 17,518 17,420 1,505 1,201 1,080 896

Median measured net worth (dollars) . . . 185,500 161,174 208,023 181,016 65,141 57,736 73,032 77,498

Excluding home equity .............. 98,510 82,947 115,658 94,656 20,975 15,721 25,639 24,483

NA Not available.

1

Quintile upper limits for 2000 were: lowest quintile - $1,304; second quintile - $2,426; third quintile -

were: lowest quintile - $1,194; second quintile - $2,006; third quintile - $3,463; fourth quintile - $5,417. 2

People of Hispanic origin may be of any race.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

$3,813; fourth quintile - $5,988. Upper limits for 1998
U.S. Census Bureau 15

Table I.

Percentage Distribution of Net Worth of Households by Asset Type by Race and Hispanic

Origin of Householder: 1998 and 2000

(Excludes residents of group quarters)

Asset type

Total Non-Hispanic White Black Hispanic origin1

2000 1998 2000 1998 2000 1998 2000 1998

Total net worth (percent) ...... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Interest-earning assets at financial

institutions ....................... 8.9 8.1 9.2 8.2 6.6 5.9 6.7 5.9

Other interest-earning assets........ 1.7 2.7 1.8 2.8 0.8 0.8 0.5 0.9

Regular checking accounts ......... 0.3 0.4 0.3 0.4 0.5 0.8 0.9 0.9

Stocks and mututal fund shares ..... 15.6 18.8 16.2 19.6 4.0 6.3 8.3 8.3

Own home ........................ 32.3 33.7 31.0 32.6 61.8 59.2 50.8 48.0

Rental property ................... 3.7 4.5 3.6 4.5 5.6 2.6 4.7 5.1

Other real estate .................. 3.6 3.2 3.7 3.2 2.9 2.7 4.3 4.1

Vehicles .......................... 3.7 4.4 3.5 4.2 9.7 9.3 5.9 8.0

Business or profession ............. 7.7 7.3 7.6 6.9 5.2 8.1 10.5 13.0

U.S. savings bonds ................ 0.5 0.6 0.5 0.6 0.3 0.4 0.3 0.2

IRA or Keogh accounts ............. 8.6 7.9 9.0 8.2 2.3 2.2 5.3 4.6

401K and thrift savings plans ....... 9.7 8.6 9.6 8.5 6.7 10.6 9.9 8.0

Other financial investments ......... 1.6 2.6 1.6 2.7 0.9 1.5 2.7 2.5

Unsecured liabilities2 ............... –3.0 –3.4 –2.6 –3.1 –11.0 –10.6 –8.7 –9.4

1

People of Hispanic origin may be of any race.

2

Because net worth is assets less liabilities, unsecured liabilities are subtracted from the distribution of net worth and are shown as negative.

Note: Individual outliers that highly influenced the mean value for asset categories were topcoded or excluded. The mean is used to calculate the percent

distribution. The outlier adjustments to the individual assets and not the totals led to columns not summing to 100 percent.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

Figure 7.

Median net worth

Median net worth, excluding home equity

Female householders

Male householders

Married couple households

All households

Median Net Worth and Median Net Worth Excluding Home Equity of Households by 

Type of Householder: 2000

(2000 dollars)

55,000

27,675

24,659

23,028

5,000

7,546

13,473

91,218

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.
16 U.S. Census Bureau

Table J.

Median Net Worth and Median Net Worth Excluding Home Equity of Household

by Type of Household and Age of Householder: 1998 and 2000

(Excludes residents of group quarters. Number of households in thousands)

Type of household by age

of householder

2000 1998

Number of

households

Median net worth

Number of

households

Median net worth

(In 2000 dollars)

Total

Excluding equity

in own home Total

Excluding equity

in own home

Married-couple households . . . 56,700 91,218 27,675 55,432 82,129 24,373

Less than 35 years ........ 10,992 17,350 5,850 11,713 16,036 6,572

35 to 54 years............. 28,057 93,225 31,780 26,797 83,651 28,230

55 to 64 years............. 8,484 172,425 73,962 7,867 152,752 63,586

65 years and over ......... 9,166 173,950 57,586 9,055 164,747 55,176

Male householders........... 18,146 24,659 7,546 17,123 19,681 6,371

Less than 35 years ........ 5,219 6,250 4,125 5,174 5,835 3,754

35 to 54 years ............ 7,640 31,166 9,023 7,087 21,040 6,731

55 to 64 years ............ 2,010 48,700 10,400 1,741 45,019 9,746

65 years and over ......... 3,276 84,000 15,375 3,121 73,848 19,304

Female householders ........ 29,798 23,028 5,000 29,227 19,740 4,591

Less than 35 years ........ 6,152 1,500 750 6,406 621 250

35 to 54 years............. 10,366 16,850 4,350 9,938 14,363 3,995

55 to 64 years............. 3,644 50,380 8,700 3,375 49,136 6,569

65 years and over ......... 9,637 76,000 10,475 9,508 75,127 10,826

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.

Table K.

Median Net Worth of Households by the Labor Force Activity During the 4 Month

Reference Period of Householders Under 65 Years of Age: 1998 and 2000

(Excludes residents of group quarters. Number of households in thousands)

Labor force activity of householders

under 65 years of age

2000 1998

Number of

households

Median measured

net worth

Number of

households

Median measured

net worth

(2000 dollars)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,564 41,692 80,099 35,890

With labor force activity in the past 4 months ............. 70,175 44,320 67,694 39,075

With a job during the entire 4 months .................. 62,781 51,050 60,196 45,922

With a job during some of the 4 months................ 6,735 6,166 6,721 5,870

No job during the entire 4 months, spent time looking or

on layoff .......................................... 660 3,250 777 1,043

No labor force activity during the past 4 months........... 11,912 28,543 11,862 20,562

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel.
U.S. Census Bureau 17

USER COMMENTS ACCURACY OF THE national population by age, race,

ESTIMATES sex, and Hispanic origin. This The Census Bureau welcomes the weighting partially corrects for comments and advice of data Statistics from surveys are subject bias due to undercoverage, but users. If you have suggestions or to sampling and nonsampling biases may still be present when comments, please write to: error. All comparisons presented in people who are missed by the sur- this report have taken sampling Daniel Weinberg vey differ from those interviewed error into account and are signifi- Chief, Housing and Household in ways other than the age, race, cant at the 90-percent confidence Economic Statistics Division sex, and Hispanic origin. How this level. This means the 90-percent U.S. Census Bureau weighting procedure affects other confidence interval for the differ- Washington, DC 20233-8500 variables in the survey is not pre- ence between the estimates being cisely known. All of these considor contact: compared does not include zero. erations affect comparisons across Nonsampling errors in surveys different surveys or data sources. Labor Force and Transfer Program may be attributed to a variety of Statistics Branch sources, such as how the survey For further information on the

Thomas Palumbo was designed, how respondents source of the data and accuracy of

301-763-3230 interpret questions, how able and the estimates including standard

thomas.j.palumbo@census.gov willing respondents are to provide errors and confidence intervals, 

correct answers, and how accu- go to www.sipp.census.gov/sipp/

rately the answers are coded and sourceac/s&a96_040501.pdf 

classified. The Census Bureau or contact Reid Rottach of the

employs quality control procedures Census Bureau Demographic

throughout the production process Statistical Methods Division on the

including the overall design of sur- Internet at

veys, the wording of questions, reid.a.rottach@census.gov

review of the work of interviewers For further information on statisti- and coders, and statistical review cal standards and the computation of reports to minimize these and use of standard errors, contact

errors. Charles D. Sissel, Demographic

The Survey of Income and Program Statistical Methods Division, at

Participation weighting procedure 301-763-5922,

uses ratio estimation, whereby charles.d.sissel@census.gov

sample estimates are adjusted to

independent estimates of the
18 U.S. Census Bureau

Appendix A. 

COMPARISONS OF SURVEY OF INCOME AND PROGRAM PARTICIPATION DATA WITH DATA

FROM THE SURVEY OF CONSUMER FINANCES

This appendix examines data quality in SIPP by comparing wealth

data from the Survey of Income

and Program Participation (SIPP)

with data from the 1998 Survey of

Consumer Finances (SCF). For any

survey, an important determinant

of data quality is the accuracy of

reported and imputed amounts.

Response errors in wealth data, for

example, can result from a variety

of factors, including random

response error, misreporting of or

failure to report asset ownership,

and misreporting of asset and liability values. The extent of survey

response error can be measured by

comparing survey estimates with

independently derived estimates,

which is what is attempted here

for SIPP wealth data. A caveat

applicable to this analysis is that

the accuracy of such measurements is often impaired by differences between surveys in areas

such as population coverage, reference periods, collection and processing methods, and data collection and tabulation categories.

The SIPP-SCF comparisons in this

appendix were made with previously-published data that were not

specifically tabulated for the purpose of making such

comparisons.1 In particular, the

existing tabulation categories

restrict the number and kinds of

comparisons that could be made

for particular types of assets. The

asset types for which data were

tabulated in either survey often

had no exact counterpart in the

other; even groupings of asset 

1

This appendix represents a first attempt,

and not an in-depth effort, to benchmark the

SIPP data against an independent source.

Planned future research will attempt to retabulate the data from the original SIPP and SCF

datasets for comparable universes for the most

detailed asset-type categories in each.

categories in the one were often individual or couple in the houseonly approximate matches for hold and all other persons in the

groupings of the other. Table A-1 household who are financially

presents in columns 1 and 2 the dependent on that person or those

asset categories used in the two persons. The SCF definition of famsurveys, and in columns 3 and 4 ily includes people who live in

offers more complete explanations group quarters, such as boarding

of the asset categories to assist houses, college dormitories, and

the reader. The reader is cau- facilities shared by members of a

tioned that the individual map- religious community. 

pings between the SIPP and SCF The SIPP data in this appendix categories vary in the degree of were extracted from the tables in comparability. the body of this present report, as

The SCF is a triennial survey of well as from the detailed tables for

U.S. families sponsored by the this report located at www.sipp.

Board of Governors of the Federal census.gov/sipp/pubsmain.htm.

Reserve System with the coopera- They were collected in wave 6 of

tion of the U.S. Department of the the 1996 panel, and represent the

Treasury. The survey is designed to wealth holdings of the households

provide detailed information for in the U.S. civilian noninstitutional

U.S. families on their balance population in the period of

sheets and their use of financial December 1997 through March

services, as well as on their pen- 1998. The SIPP defines a housesions, labor force participation, hold as all the people who occupy

and demographic characteristics at a housing unit; in a further departhe time of the interview. For a ture from the SCF definition of

detailed description of the survey, “family,” the SIPP definition of

see www.federalreserve.gov/pubs/ “household” does not include peooss/oss2/98/scf98home.html. ple living in group quarters.

The 1998 SCF data in this appen- Table A-2 compares the SIPP and

dix were derived from the pub- SCF estimates of median net worth

lished figures in the paper “Recent by selected household characterisChanges in U.S. Family Finances: tics. The SIPP estimate for houseResults from the 1998 Survey of holds in general, $47,900, is about

Consumer Finances,” by Arthur B. 67 percent of the SCF estimate of

Kennickell, Martha Starr-McCluer $71,600. The comparisons for parand Brian J. Surette at the Web site: ticular kinds of households show

www.federalreserve.gov/pubs/oss/ similar shortfalls in the SIPP.

oss2/98/bull0100.pdf. The data Differences in survey universes

were collected by the National and coverage may be factors in

Opinion Research Center at the some of these differences. The SCF

University of Chicago between July is predominately intended to measand December of 1998. They rep- ure family wealth and is more

resent the wealth holdings of U.S. comprehensive than SIPP in its cov-

“families” in the latter half of 1998. erage of asset holdings; unlike the

A family, or primary economic SCF, SIPP does not measure equiunit, as defined by the SCF, is the ties in pension plans, cash surreneconomically dominant single der value of life insurance policies,
U.S. Census Bureau 19

and value of household furnishings Example 2 – Table A-3, compari- the SIPP-SCF mappings discussed

such as antiques, art, and jewelry. son of row 1 under “Financial above is probably reflected, howAlso, the 1998 SCF included a spe- assets”: ever, in these tables. For example,

cial oversample of relatively there is more consistency for the Table A-1 shows that the SCF cate- wealthy individuals; the SIPP sam- home-ownership (“own home—pri- gorizes as “transaction accounts,” ple, in contrast, oversampled the mary residence”) and vehicles cate- the kinds of detailed asset types low- income population for the gories than for the real estate most closely found in the two SIPP 1996 panel rather than the (“rental property— other residential categories, “interest-earning assets wealthy. property”) category. The Table A-3 at financial institutions” and figures for the former categories The groupings developed in “checking accounts.” So, in (own home: SIPP— 66.4 percent; Table A-1 are used in Tables A-3 Table A-3 , the asset ownership primary residence: SCF— 66.2 per- and A-4 to compare asset owner- rates of these two SIPP categories, cent; vehicles: SIPP — 85.3 per- ship rates and median values of 63.9 percent and 38.9 percent, cent; SCF — 82.8 percent) compare holdings for selected asset types. respectively, are shown in very favorably, whereas the com- The following examples show how column 3, next to the correspon- parison for rental property, SIPP— to read these tables: ding rate of 90.5 percent for SCF 5.4 percent; and other residential “transactions accounts.” The SIPP Example 1 – Table A-3, compari- property, SCF — 12.8 percent, percentages are shown separately son of row 3 under “Financial reflects considerable variation in because they were taken from assets”: detailed components. The glaring published figures in which the difference in Table A-4 in median

Table A-1 shows that the the SIPP same households may, but do not value of holdings between “SIPP: category “U.S. savings bonds” is necessarily need to be, represent- business or profession” (median : most comparable with the SCF cat- ed in both categories; the two fig- $7,000) and “SCF: business equi- egory called “Savings bonds.” So, ures therefore cannot be summed ty”(median: $60,000) is difficult to in Table A-3 , the asset ownership without the risk of double-count- explain, although some of it is rate in SIPP for “U.S. savings ing. Such mappings are made in probably related to conceptual bonds,” 16.3 percent, is shown in the table merely to give the reader consistency. column 3, next to the correspon- an idea of the possible range of

ding rate of 19.3 percent for the the SIPP (or SCF) data. As additional research into the difSCF category “Savings bonds.” ferences is completed, it will be The SIPP and the SCF compare rea- published as SIPP working papers sonably well in most of the dimen- or with the next report in this sions shown in Tables A-3 and A-4. series. The variation in comparability of
Table A-1.

Detailed Components of Corresponding Groupings of Asset Types: 1998

Corresponding asset-type groupings Detailed components

1998 SIPP 1998 SCF 1998 SIPP 1998 SCF

Financial Assets

Interest-earning assets at

financial institutions ............

Regular checking accounts ......

Certificates of deposit...........

Stocks and mutual funds ........

U.S. savings bonds ............

IRA or Keogh accounts. . . . .. . . . .

401(k) and thrift savings plans . . .

Other interest-earning assets. . . .

U.S. government securities ......

Municipal and corporate bonds. . .

(NA) .........................

Other financial investments ......

Nonfinancial Assets

Own home ....................

Rental property ................

Financial Assets

Transaction accounts......

........................

Certificates of deposit .....

Stocks ..................

Mutual funds .............

Savings bonds ...........

Retirement accounts ......

........................

Bonds...................

........................

........................

Life insurance ............

Other managed accounts . .

Other ...................

Nonfinancial Assets

Primary residence ........

Other residential property . .

Interest-earning assets at financial

institutions include passbook savings

accounts, money market deposit

accounts, certificate of deposit, and

interest-earning checking accounts.

Checking accounts include noninterest earning checking accounts.

Certificates of deposit or other savings

certificates.

Equity in stocks, including both

common and preferred stock in private

corporations. Does not include shares

of stock in any closely-held

corporations. Equity in mutual fund

shares, including shares in any mutual

fund which invests in stocks.

..................................

Series E or EE U.S. savings bonds.

Individual retirement accounts or

Keogh (or H.R. 10) plans.

Includes 401(k) and thrift plans.

Other interest-earning assets include

municipal or corporate bonds and U.S.

government securities.

U.S. government securities include

Treasury bills, Treasury notes, and

Treasury bonds. Also includes Series

H and HH U.S. savings bonds. Also

includes credit instruments or agencies

such as Fannie Mae.

Municipal or corporate bonds include

marketable securities (other than

stocks), such as bills, certificates,

notes, bonds, or debentures issued by

state or local governments or domestic

corporations.

Not collected in SIPP.

Other financial investments include

mortgages held for sale of real estate,

amount due from sale of business or

property, and other financial assets

such as investments in a noncorporate

business venture managed by others

(e.g. a limited partnership),

investments in a corporation, and

other investments not reported

elsewhere (e.g. part ownership of a

race horse).

..................................

Equity in primary home, owned or

being bought by someone in

household.

Equity in rental property includes

residential, commercial, industrial,

and/or land rental property as well as

equipment which is rented out, such

as tractors, computers, etc.

Checking, savings, and money market

deposit accounts, money market mutual

funds and call accounts at brokerages.

Certificates of deposit

Stocks other than those held through

mutual funds, retirement accounts, or

other managed assets.

Mutual funds excluding money market

funds or funds held through retirement

accounts or other managed assets.

Mutual fund in the SCF also include

bond and combo funds.

Savings bonds

Includes IRAs, Keogh accounts, and

certain employer-sponsored accounts.

Includes 401(k) and thrift accounts.

Bonds, excluding savings bonds and

bonds held through mutual funds,

retirement accounts, and other

managed assets.

Cash value life insurance.

Managed assets include personal

annuities, trusts with an equity interest,

and managed investment accounts.

Includes a heterogeneous category,

including oil and gas leases, future

contracts, royalties, proceeds from

lawsuits, or estates in settlements and

loans made to others.

Home ownership, primary place of

residence.

Includes second home, timeshares,

one- to four-family rental properties,

and other types of residential rental

property. Includes mortgages owed to

the household and vacation homes.

20 U.S. Census Bureau
U.S. Census Bureau 21

Table A-1.

Detailed Components of Corresponding Groupings of Asset Types: 1998—Con.

Corresponding asset-type groupings Detailed components

1998 SIPP 1998 SCF 1998 SIPP 1998 SCF

Other real estate...............

Vehicles ......................

Business or profession..........

(NA) .........................

Equity in nonresidential

property ................

Vehicles .................

Business equity ..........

Other ...................

Equity in other real estate includes

vacation homes and land holdings.

Equity in vehicles include cars, trucks,

vans, motorcycles, boats, and RVs.

Does not include leased vehicles or

company cars.

Equity in one’s own business or

profession, excluding investments in a

noncorporate business venture

managed by others (e.g. a limited

partnership), investments in a

corporation.

Not collected in SIPP.

Includes commercial properties, rental

properties with five or more units,

farmland, undeveloped land and all

other types of nonresidential real estate

(except property owned through a

business).

Includes automobiles, vans, trucks,

SUVs, motorcycles, airplanes, and

boats that are used for personal use.

Does not include leased vehicles or

business-owned vehicles used for

personal use.

Includes sole proprietorships, limited

partnerships, subchapter S

corporations, other types of

corporations that are not publicly traded

and other types of private businesses.

Also includes nonactively managed

business interests.

A broad category, including artwork,

jewelry, precious metals, and antiques.

Source: Survey of Income and Program Participation, 1996 panel and 1998 Survey of Consumer Finances.

Table A-2.

Median Net Worth by Household Characteristics: 1998

(In thousands of dollars)

Household characteristic

1998 SIPP 1998 SCF

Estimate Standard Error Estimate Standard Error

Total households.................................

Age of Householder

Less than 35 years ....................................

35 to 44 years ........................................

45 to 54 years ........................................

55 to 64 years ........................................

65 years and over, total ................................

65 to 74 years ......................................

75 years and over ...................................

Education of Householder

No high school diploma ................................

High school diploma ...................................

Some college .........................................

Associate’s degree ....................................

Bachelor’s degree or higher ............................

Race and Hispanic Origin of Householder

White, not of Hispanic origin ............................

Region

Northeast.............................................

Midwest ..............................................

South ................................................

West. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Housing Tenure

Owner ...............................................

Renter ...............................................

47.9

6.3

36.7

72.4

99.1

101.1

(NA)

93.2

15.6

41.5

40.7

52.3

111.3

68.0

63.0

59.6

37.7

43.2

97.2

1.4

0.50

0.23

0.79

1.66

2.71

1.89

(NA)

2.48

0.39

0.79

1.01

1.66

2.22

0.78

1.52

1.23

0.67

1.00

0.92

0.08

71.6

9.0

63.4

105.5

127.5

(NA)

146.5

125.6

20.9

53.8

73.9

(NA)

146.4

94.9

94.2

80.3

61.3

61.3

132.1

4.2

4.1

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

(NA)

NA Not available.

Note: Standard errors are shown when available.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel and 1998 Survey of Consumer Finances.
22 U.S. Census Bureau

Table A-3.

Asset Ownership Rates by Asset Type: 1998

(Percentage of total households who hold the asset type)

SIPP category Corresponding SCF category 1998 SIPP estimate 1998 SCF estimate

Financial assets: Financial assets:

Interest-earning assets at financial institutions . . . Transaction accounts .................... 63.9 90.5

Regular checking accounts .................... 38.9 (NA)

Stocks and mutual funds ...................... Stocks .................................

Mutual funds ...........................

27.1

(NA)

19.2

16.5

U.S. savings bonds ........................... Savings bonds.......................... 16.3 19.3

IRA or Keogh accounts ....................... Retirement accounts..................... 21.3 48.8

401K and thrift savings plans .................. 26.8 (NA)

Other interest-earning assets .................. Bonds ................................. 3.9 3.0

Other financial investments .................... Other managed accounts ................

Other ..................................

4.7

(NA)

5.9

9.4

Nonfinancial assets: Nonfinancial assets:

Own home .................................. Primary residence....................... 66.4 66.2

Rental property .............................. Other residential property ................ 5.4 12.8

Other real estate ............................. Equity in nonresidential property .......... 6.5 8.6

Vehicles ..................................... Vehicles ............................... 85.3 82.8

Business or profession........................ Business equity ......................... 11.5 11.5

NA Not applicable as a separate category for survey.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel and 1998 Survey of Consumer Finances.

Table A-4.

Median Value of Holdings by Selected Asset Type: 1998

(In thousands of dollars)

SIPP category Corresponding SCF category

1998 SIPP

1998 SCF

Estimate Standard error estimate

Financial assets: Financial assets:

Interest-earning assets at financial institutions . . . Transaction accounts ............ 3.7 0.04 3.1

Other interest-earning assets .................. Bonds .......................... 30.0 1.01 44.8

U.S. savings bonds ........................... Savings bonds .................. 0.8 0.02 1.0

Stocks and mutual fund shares ................ Stocks ......................... 16.8 0.34 17.5

Mutual funds .................... (NA) (NA) 25.0

Other financial investments .................... Other managed accounts ......... 23.4 1.03 31.5

Other .......................... (NA) (NA) 3.0

Nonfinancial assets: Nonfinancial assets:

Own home .................................. Primary residence ............... 53.0 0.45 57.0

Rental property .............................. Other residential property......... 57.0 1.94 65.0

Other real estate ............................. Equity in nonresidential property. . . 30.0 0.98 38.0

Vehicles..................................... Vehicles ........................ 5.8 0.05 10.8

Business or profession........................ Business equity ................. 7.0 0.43 60.0

NA Not applicable as a separate category for survey.

Note: Standard errors are shown when available.

Source: U.S. Census Bureau, Survey of Income and Program Participation, 1996 panel and 1998 Survey of Consumer Finances.
U.S. Census Bureau 23

Appendix B. 

CHANGES IN MEDIAN ESTIMATION FROM PRE-1995 REPORTS

This report uses an estimation grouped data for median estima- robust and efficient (see

technique for the median that dif- tion (see Appendix C in the 1991 Rousseeuw, Peter J. and

fers from the one used for the pre- Household Wealth and Asset Christopher Croux, 1993,

1995 SIPP reports in this series on Ownership report (P70-34) avail- “Alternatives to Median Absolute

household wealth and asset owner- able at the following Web address: Deviation,” Journal of the American

ship. The estimation technique in www.sipp.census.gov/sipp/ Statistical Association. 88:1273-

this report uses a “traditional” pubsmain.htm). The median inter- 83). When comparing the data

median estimation procedure that polation value and its standard from past reports with data from

lines up all the values from lowest error can vary widely depending this report, the standard error of

to highest; the value correspon- on the intervals chosen for use in each estimate must be pooled to

ding to the 50th percentile then the formula. The “traditional” test for statistically significant difbecomes the median. (Respondents median estimation does not rely on ferences between the estimates

tend to round off responses to the interpolation within grouped data (see the Source and Accuracy

nearest hundred and/or thousand, and is easily replicated. Statement for the 1992 panel for

and this tendency is reflected in Furthermore, the standard error details go to www.sipp.census.gov/

the median values throughout the estimate for the “traditional” medi- sipp/methmain.htm).

report.) In past reports, an inter- an estimate produces much smaller

polation formula was used on standard errors that are both

Appendix C. 

INFLATION-ADJUSTMENT (CONSTANT-DOLLAR) METHODOLOGY

To be consistent with the practice The adjustment factor was calcu- values for the reference period for

of the Current Population Survey lated by taking the average of the the SIPP 1998 data (November

and the Survey of Consumer 2000 CPI-U-RS values for the 1997, December 1997, January

Finances, this report used an 4 months in the SIPP reference 1998 and February 1998). The 

adjustment factor based upon the period for the 2000 data CPI-U-RS values were obtained from

Consumer Price Index Research (November 1999, December 1999, www.bls.gov/cpi/cpiurstx.htm.

Series Using Current Methods (CPI- January 2000 and February 2000) The resulting adjustment factor for

U-RS) to inflate current 1998 dollar and dividing this average by the 1998 was 245.9/235.825=1.0427. 

values to constant 2000 levels. average of the 1998 CPI-U-RS 
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