This just in: Millennials earn 20 percent less than baby boomers did at the same stage of life, according to an analysis of Federal Reserve data by the advocacy group Young Invincibles.
The data compared 25- to 34-year-olds in 2013 to the same age group in 1989 after adjusting for inflation. The results are disappointing, to say the least.
The analysis gives details about this generational divide in which millennials have a median household income of $40,581, and have half the net worth of their parents, the Associated Press reports. Despite being better educated, millennials also have more student debt and a lower rate of homeownership. This isn’t that suprising—if you’ve got tens of thousands of dollars in debt after college, it’s not going to be easy to put down a deposit on a nice suburban house anytime soon.
Further divides also exist among racial groups. Whites still earn dramatically more than blacks and Latinos, according to the AP. However, white millennials have still seen their income decline substantially compared to white baby boomers.
According to past research, a steady decline in opportunity reflects this analysis. People born in 1950 had a 79 percent chance of making more money than their parents. By 1980, there was only a 50 percent chance. That old American dream of making a better life for your children than you had just isn’t holding up anymore.
We’re living in challenging times, but like the report said, we’re more educated than ever—so we’ve got to use that education to get creative and help lift up ourselves and future generations. Let’s do this.