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When I saw this chart, the one mitigating thing I thought of was company provided health insurance. Surely that makes up for some of the lost salary? Alas, when I checked wikipedia, employer provided health insurance expanded dramatically soon after WWII due to price controls on salaries. (benefits were exempt). [1]

A counter factor is pensions; as we know pensions are quite rare these days.

1. http://en.wikipedia.org/wiki/Health_insurance_in_the_United_...

Is this based on income before or after taxes?
Before.

http://www.census.gov/prod/techdoc/cps/cpsmar12.pdf

"Data on consumer income collected in the CPS by the Census Bureau cover money income received (exclusive of certain money receipts such as capital gains) before payments for personal income taxes, Social Security, union dues, ..."

edit: the data source appears to be the "Table P-8. Age—People by Median Income and Sex" (all races) here: http://www.census.gov/hhes/www/income/data/historical/people...

Thanks. Then a chart of income after tax would paint a worse picture of recent times vs previous decades.