ABSTRACT
The 1980s saw the beginning of a debate over whether the American middle class was shrinking, with concern deriving from the importance attached to this segment for both the economy and society as a whole. The middle class is seen, in many ways, to represent the backbone of the US economy and American society, with its values and life-style determining the outcome of our social and political systems. With the increase in female labor force participation of the last twenty-five years, the earning of wages has become an activity engaging a greater proportion of the adult population than at any other time in the United States' economic history. For those engaged in full-time work, earnings constitute all but 2% to 3% of their total income. Thus, earnings are nearly synonymous with total income for the active participants in the economy. The decline of the middle class, which occurred during a period of industrial restructuring, appears to be a long-term trend.
