This is an intersting read. What could this bracket be for the Philippines?? Can we even make a similar graph from data BIR has? NSO ?
Sometimes wish a day has 2400 hours.(not too often)
That said, there is an interesting qualitative change in the structure of income that starts to happen around this cutoff for the “rich” which actually suggests that taxpayers above that threshold are rich in most important ways. The most recent (2007) tax stats from the IRS now reflect the peak of the late bubble and show that the $100K-$200K AGI bucket is the last one that more-or-less resembles middle-income categories in their dependence on labor as the all-but exclusive source of income. (Think of pensions and proceeds of retirement accounts as representing deferred wages or salaries.) This graph shows the shares of AGI from some major income sources, and the average incomes for various brackets. (*)
Sources of Individual Income, 2007 SOI Tax Stats
(May be embiggened by clicking here.)
Starting with the $200-500K category, the share of earnings from labor begins a marked decline. By the time you hit mid-six figures, average earnings from income, dividends, and capital gains become high enough to provide middle-class or better incomes without (necessarily) working. Tax returns in the upper-six-figure bucket, on average, show more income from other sources collectively than from salaries, and at the top of the income scale even interest and dividend income exceeds wages and salaries. (**) I suggest that if you can provide yourself with a better-than-average living without working, a very rare luxury indeed, you are in fact rich.
(Revised and slightly expanded.)
via The Rich *Are* Different | Angry Bear.
I graduated from UP (University of the Philippines). In the Philippines there is really no comparison with other universities here in my country (although a few friends would definitely disagree, this is my blog so bugger off). I’d have to say that one of the major reasons that UP is different is the diversity you have when your tuition fee is worth not even half a Play Station Portable and only a handful of your science programs are not the centers of excellence of your country(Electrical Engineering program in UP is the center of excellence for EE in Phils., It’s really disheartening that a few departments have the swagger but not the chops to be the best at least in the Here and be respected elsewhere). from my own experiences a UP diploma is good enough for a middle to upper middle income household if you start from scratch, and in a lot of ways helps open doors for you. I’ve always wondered about the people who refuse to study what they really want to study in lieu of studying something because that is the course that they got into in UP. It’s probably because of this, I think that either the median income of most professions in the Philippines really fall within a narrow field and this makes where you graduate almost as important as what was your course when you graduate. Well what do I know??
Returns to good universities
New research confirms what we’ve long suspected but not quantified – that it does matter what university you attend.
This paper shows that there are significant differences in graduate earnings, depending upon the quality of university. For example, if a university has an RAE score one standard deviation above-average, its graduates earn, on average, 4% more than the average graduate. And a graduate of a top quartile university earns 10-16% more (depending on which measure of quality is used*) than a graduate of a bottom quartile institution.
These differences control for students’ A level scores and other things, and so try to correct for the fact that better universities attract better applicants.
There seems to have been a rise in these returns over time, which suggests that as university numbers have expanded, so too has the premium upon attending a better one.
via Stumbling and Mumbling: Returns to good universities.