Median Earnings.
In plain English
Median earnings are the middle value in a list of everyone's pay, so exactly half of workers earn more and half earn less. It is a more honest measure of typical pay than the average, because a handful of very high earners can pull an average up and away from what most people actually make. Economists track median earnings, often by group or education level, to see whether typical workers are getting ahead of inflation or falling behind.
01Why it matters
Median earnings tell you what a typical worker really makes, which is more useful for judging your own pay than an average that a few big salaries can distort.
02The math, step by step
In a group of five workers earning 40k, 45k, 50k, 55k, and 200k, the average is 78k but the median is 50k. The median better reflects what a typical person in the group earns.
03What this is NOT
Median earnings are NOT the average. The average can be pulled up by a few very high salaries; the median is the middle value, which is usually closer to what a typical worker makes.