Is there a relation between age and income - Speech or Presentation Example

Politicians and the media often include age as a factor when taking about income inequalities. Differences in wealth between old and young people are even greater than the differences witnessed when it comes to income. For example studies show that households headed by person who is over 65 years have more than 15 times as much wealth as compared to households held by persons below 35 years of age (Bowles and Herbert, 75). Age differences is just one of the many reasons that explains the reason behind insinuations about wealth and income that are thrown around in politics and in the media are often remote from reality.

The statistics about the differences between age and income are almost perpetually about abstract income brackets. Additionally, a lot of statistical studies that follow specific individuals throughout their lives often reach diametrically conflicting conclusions from the conclusions attained by statistical studies that follow income brackets for a long period of time. A study undertaken by university of Michigan indicated that many of the working people who were in the bottom 20% of income earners in the year 1975 were also in the top 40% at some point in the year 1991.

Of those in the bottom quartile in 1975, only 5% were still glued there come the year 1991 while 29% of them were now in the top quartile. This study tries to analyze the relationship between income and age and tries to explain the trend that exists between age and income. The question will be guided by the following research question: what is the relationship between income and age from the year 1974-2011 (Gray et.al, 76). Studies that have been carried out to determine the relationship between age and income have resulted in a general result that income is positively related to the age of an individual.

The studies have generalized a sample to a population. Assumptions are vital concept of empirical