# Understanding the Upper Class: Definition, Salary & Social Hierarchy

![Upper Class](https://www.investopedia.com/thmb/uh13fpxDBK4liCzkwGy6oDhytWQ=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/upper-class.asp-final-1-f26409c569374dc2aa97b76fb5c8e60e.png)

*— Investopedia / Joules Garcia*

## What Is the Upper Class?

The term upper class refers to a group of individuals who occupy the highest place and status in society. These people are considered the wealthiest, lying above the working and [middle class](https://www.investopedia.com/terms/m/middle-class.asp) in the social hierarchy. Individuals who make up the upper class have higher levels of [disposable income](https://www.investopedia.com/terms/d/disposableincome.asp) and exert more control over the use of natural resources. While the upper class makes up a small percentage of the overall population, it controls a disproportionately large amount of the overall wealth.

### Key Takeaways

*   The upper class consists of individuals who occupy the highest status in society and hold significant wealth and power.  
    
*   Historically, the upper class was made up of land-owning nobility, but it now includes a broader range of wealthy people like celebrities and politicians.  
    
*   In the U.S., upper-class households represented 19% of the population in 2018, with a median income of $187,872, indicating a significant income gap.  
    
*   Income and power differentiate the upper class from middle and working classes, which perform most economic production and consumption due to their majority numbers.  
    
*   As economies grow, emerging and frontier economies develop a middle class that bridges the gap between the poor working class and the elite upper class.

## Exploring the Upper Class: Wealth and Influence

The term upper class is a [socioeconomic](https://www.investopedia.com/terms/s/social-economics.asp) term used to describe those who reside on the highest levels of the social ladder above the middle and working or lower classes. They generally have the highest status in society and hold a great deal of wealth. Because of this, they also carry a considerable amount of power—politically, economically, and financially.

> **Important**
>
> Members of the upper class carry a considerable amount of power—politically, economically, and financially.

This class was historically dominated by [land](https://www.investopedia.com/terms/l/land.asp)\-owning nobility and aristocrats. People who fell into these groups didn't have to work for a living. Instead, they inherited their money or lived off their investments. Because this group was primarily composed of large, wealthy families, those who didn't belong—including anyone who managed to amass a considerable amount of [wealth](https://www.investopedia.com/terms/w/wealth.asp)—were barred from calling themselves members of the upper class.

The definition of the term has changed over time to include a wider range of people. Today, celebrities, politicians, [investors](https://www.investopedia.com/terms/i/investor.asp), and other wealthy individuals fall into this group. In the United States, those who lived—and continue to live—in leadership roles in society are often considered part of the upper class. These are people whose status has been passed down through generations.

 A 2018 Pew Research Center study found that 19% of American adults belonged to upper-class households, with a median income of $187,872 in 2016. In contrast, 52% were middle class, and 29% were lower class. This concentration of wealth creates significant [income and power disparities](https://www.investopedia.com/terms/i/income-inequality.asp).

Though the upper class influences economic and political events, the working and middle classes account for most production and consumption. They outnumber the upper class and use more resources.

## Comparing Upper, Middle, and Lower Social Classes

Income and power typically distinguish the [upper class from others](https://www.investopedia.com/financial-edge/0912/which-income-class-are-you.aspx). The middle class includes those between the upper and lower or working class, and its definition can vary by income, education, and location. Many in the middle class work as professionals or civil servants and own property.

The [working](https://www.investopedia.com/terms/w/working-class.asp) or lower class occupies society's lowest level, often employed in low-paying, [blue-collar](https://www.investopedia.com/terms/b/bluecollar.asp) jobs requiring physical labor and limited skill. They earn significantly less than upper and middle-class individuals and hold minimal power.

 In frontier or [emerging economies](https://www.investopedia.com/terms/e/emergingmarketeconomy.asp), there often exist two classes: the working class (poor) and the upper class (elite). As the economy develops, jobs and [infrastructure](https://www.investopedia.com/terms/i/infrastructure.asp) improve, allowing a middle class to form. This middle class then gains more disposable income, propelling economic growth.

Eventually, a divide within the middle class emerges and separates the average middle class from those who have significantly more disposable income but aren't yet considered rich. These are the upper-middle-class people. The upper-middle-class usually evolves out of people from the middle-class tier who are particularly resourceful or who achieve higher levels of education than the rest of the middle class. Examples of these people in today's society are doctors and lawyers. Although they are not Bill Gates, they do make more money than teachers.

## The Bottom Line

Understanding the socioeconomic landscape is crucial for comprehending how wealth and power are distributed across different classes. The upper class, occupying the highest tier, holds significant wealth and influence despite representing a small portion of the population. Historically reserved for nobility, the definition of the upper class has evolved to include a wider range of wealthy individuals, such as celebrities and politicians.

Conversely, the middle and working classes, while larger in size, possess less wealth and power but drive much of the economic activity through their labor and consumption. Awareness of these dynamics can inform discussions about income inequality and social mobility.

> **Article Sources**
>
> 1.  Pew Research Center. "[The American Middle Class Is Stable in Size, but Losing Ground Financially to Upper-Income Families](https://www.pewresearch.org/fact-tank/2018/09/06/the-american-middle-class-is-stable-in-size-but-losing-ground-financially-to-upper-income-families/)."