In wake of recession, American income stability improving

The Economic Security Index, which measures how many households saw a 25 percent or higher drop in their disposable income in a year, fell 1.3 percentage points, meaning household incomes are stabilizing.

Shutterstock

Enlarge photo»

Summary

The Economic Security Index, which measures how many households saw a 25 percent or higher drop in their disposable income in a year, fell 1.3 percentage points, meaning household incomes are stabilizing.

The Economic Security Index, which measures how many households saw a 25 percent or higher drop in their disposable income in a year, fell 1.3 percentage points, meaning household incomes are stabilizing, according to a report released by the Rockefeller Foundation and Yale professor Jacob Hacker.

More than 20 percent of households felt large drops in their household income in 2010, a number that has dropped to 18.9 percent in 2011, a 1.3 decrease in percentage points, the largest in 25 years.

Statewide, the ESI in Utah fell 1.6 percentage points between 2010 and 2011.

While the ESI is driven mostly by income, debt and health costs can also have an effect on it. Household debt levels fell in 2011, which may have had the effect on the change in ESI.

Although the decrease in the ESI can have several good indications, the drop can also be caused by long-term unemployment.

EMAIL: sparker@desnews.com

TWITTER: @SeanRParker