What does the median income indicate?

The median income is a statistical measure that represents the income level at which half of the population earns less and half earns more. This concept of "equal halves" is crucial because it provides a clearer picture of income distribution without being skewed by extremely high or low incomes.

In contrast, average income can be significantly influenced by outliers, which might not reflect the financial reality for the typical individual. Therefore, the median income serves as a more effective indicator of the economic status of the middle segment of the population, highlighting disparities in income that might otherwise be masked by other measures.

The other options describe different aspects of income statistics; for example, the average income of the highest 20% of earners pertains to a specific segment of the population rather than the overall distribution, while total income earned by the middle class does not accurately capture the concept of median, and including all earners in a country references a different calculation altogether.