Mean Net Worth

Rationale

Measuring household net worth at the mean provides a basic indication of the level of wealth for average families in a state. For this measure, the data is presented at the mean rather than the median. Median measures are very sensitive to zero values, and a large proportion of the sample reported zero net worth.

About Measure

Net worth of households, at the mean (expressed in 1996 dollars). Net worth equals the sum of assets attributable to any individual age 15 years and above in the household less any liabilities. Assets included in this measure are interest-earning assets, stocks and mutual fund shares, real estate (own home, rental property, vacation homes, and land holdings), own business or profession, mortgages held by sellers, and motor vehicles. Liabilities covered include debts secured by any asset, credit card or store bills, banks loans, and other unsecured debts.

Source

Calculations by Robert and Jon Haveman based on U.S. Department of Commerce, Bureau of the Census. Survey of income program population [Electronic data tape]. (1995 and 1996).Washington, D.C.: Author.