Median Household Income is a more accurate summary measure of income: Median household income is a more robust and accurate measure for summarizing income at the geographic level as compared to average household income since it is not affected by a small number of extremely high or low income outlier households.
Also to know is, is median household income accurate?
Median figures can give a more accurate picture of income since averages can be skewed by outliers — i.e., households that make much more or much less than the majority of American households.
Similarly, why use median income instead of mean? The mean is higher than our median because the increased total income has an effect on the upper 1% but not on the worker “in the middle”. The median doesn’t care about the income of the 1%, but the mean does. The average income tells us how much money everyone could make in a perfectly equal society.
Also question is, what is the difference between median income and average income?
Median income is the amount which divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount. Mean income (average) is the amount obtained by dividing the total aggregate income of a group by the number of units in that group.
What is the median income in 2019?