The share of Asian Americans in the middle class has remained relatively steady even as their overall economic status saw marked improvements, according to a recent analysis from the Pew Research centre.
ASIAN AMERICANS : STEADY MIDDLE CLASS, RISING UPPER CLASS
As of 2023, 48% of Asian Americans lived in middle-class households, a figure that has held steady since 2010 according to the analysis of government data. Despite this stability, the economic standing of Asian Americans overall has improved, with a notable shift towards higher income tiers.
The proportion of Asian Americans in the upper-income tier rose from 27% in 2010 to 32% in 2023. Conversely, the share in the lower-income tier decreased from 26% to 21%. This shift indicates a significant upward mobility within the Asian American community.
ASIAN AMERICANS : INCOME GROWTH ACROSS TIERS
Household incomes have increased significantly for Asian Americans across all income tiers. From 2009 to 2022, the median income of middle-class Asian households grew from about $97,200 to $112,400, a 16% increase. For upper-income households, the median income surged 26%, from $220,500 to $277,600. Lower-income households saw a more modest increase of 11%, from $28,500 to $31,500 (in 2023 dollars).
The gap between the incomes of upper-income and lower-income Asian households has widened. In 2022, the median income of upper-income Asian households was 8.8 times that of lower-income households, up from 7.7 times in 2009. The income of upper-income households was also 2.5 times that of middle-income households in 2022, up from 2.3 times in 2009.
ASIAN AMERICANS : SHIFTS IN INCOME DISTRIBUTION
Despite the stable proportion of Asian Americans in the middle class, their share of the total income has declined. In 2009, middle-income Asian households accounted for 35% of the total income of all Asian households. This share fell to 31% by 2022.
The share of total income held by upper-income Asian households increased from 59% in 2009 to 64% in 2022. This rise is partly due to the growing proportion of Asian Americans in the upper-income tier.
The share of total income held by lower-income Asian households edged down from 6% in 2009 to 4% in 2022, reflecting a decrease in the proportion of Asian Americans in this tier.
COMPARATIVE ANALYSIS WITH OVERALL U.S. POPULATION
In 2022, Asian Americans were considerably more likely than the overall U.S. population to live in upper-income households. About 27% of Asian Americans were in the upper-income tier compared to 17% of Americans overall.
Conversely, Asian Americans were less likely to be in the lower-income tier. In 2022, 24% of Asian Americans were in the lower-income tier compared to 30% of Americans overall.
The share of Asian Americans in the middle class was slightly lower than that of the overall U.S. population, with 48% of Asian Americans in the middle class compared to 52% of Americans overall.
VARIATIONS AMONG ASIAN ORIGIN GROUPS
Economic status varies significantly among Asian origin groups. Between 2018 and 2022, about 39% of Asian Indians and 29% of Chinese were in the upper-income tier. However, only 15% of Indians were in the lower-income tier, compared to 29% of Chinese.
Filipino, Laotian, and Hmong Americans had a high share of their populations in the middle class, around 60%. In contrast, about half or more of Mongolian, Bangladeshi, and Burmese Americans were in the lower-income tier during this period.
The economic status of Asian Americans also varies by age. In 2022, about one-third of Asian adults 65 and older lived in lower-income households. However, nearly half of each age group were in the middle class, with younger adults more likely to be in the upper-income tier.
GENDER, MARRIAGE, AND VETERAN STATUS
In 2022, there was little difference in the economic status of Asian men and women, with similar shares living in lower-, middle-and upper-income households.
Marriage is associated with a higher likelihood of being in the upper-income tier. Among married Asian Americans, nearly a third were in the upper-income tier, compared to 23% of those who were separated, divorced, widowed, or never married.
Asian veterans were less likely than non-veterans to be in the lower-income tier in 2022 (19% vs. 24%). The share of veterans in the middle class was also higher (54% vs. 48%).
EDUCATION AND EMPLOYMENT
Higher education correlates with higher income levels. In 2022, 41% of Asian Americans with at least a bachelor’s degree were in the upper-income tier, compared to 16% or fewer among those without a bachelor’s degree.
Employment is critical for economic mobility. In 2022, 34% of employed Asian workers were in the upper-income tier, and only 16% were in the lower-income tier. Those in professional sectors like computer science, engineering, and management were more likely to be in the upper-income tier.
REGIONAL VARIATIONS
The economic status of Asian Americans varies across U.S. metropolitan areas. Coastal states tend to have higher shares of Asian Americans in the middle class, while tech-driven economies have higher shares in the upper-income tier.
Some of the most populous metro areas, like Los Angeles and New York, have significant shares of Asian Americans in the lower-income tier. In contrast, tech hubs like San Jose and Seattle have higher shares of upper-income Asian Americans.
A DECADE OF CHANGE
The economic status of Asian Americans has undergone significant changes since 2010. While the middle-class share remains stable, the proportion in the upper-income tier has grown, reflecting broader economic mobility within the community. These changes highlight the diverse and dynamic nature of the Asian American experience in the U.S. economic landscape.
Asian Americans have seen notable economic progress over the past decade, with increased representation in higher income tiers and overall improved economic status. However, disparities persist across different origin groups and regions, underscoring the complex and multifaceted nature of economic mobility within this diverse community.
