Understanding the Upper Class: Definition, Income & Social Hierarchy

Key takeaways

• The upper class occupies the highest social tier and controls a disproportionate share of wealth and power.
• Historically tied to land-owning nobility, the upper class now includes wealthy business leaders, investors, politicians, and celebrities.
• In the U.S., a 2018 Pew Research Center study classified 19% of adults as upper-class households (median income $187,872 in 2016), compared with 52% middle class and 29% lower class.
• The middle and working classes drive most production and consumption despite having less wealth and influence.
• Economic development often produces a growing middle class that narrows the gap between the poor and the elite.

What defines the upper class?

The upper class refers to people who occupy the top position in a society’s social and economic hierarchy. Key characteristics include:
* Substantial accumulated wealth and high disposable income.
* Significant social, political, and economic influence.
* Ownership or control of major assets and investments.

Membership can stem from inheritance, long-standing family status, or from wealth acquired through business, finance, entertainment, or politics.

Historical context

Traditionally, the upper class consisted mainly of land-owning nobility and aristocracy who lived off inherited wealth and investments. Membership was often exclusive and hereditary. Over time, the category expanded to include self-made elites—industrialists, financiers, and prominent public figures—reflecting changes in the sources of wealth.

Modern composition and influence

Today’s upper class includes:
* Heirs to family fortunes.
* High-net-worth entrepreneurs and investors.
* Prominent politicians, celebrities, and executives.

Their influence extends beyond personal wealth to shaping political outcomes, economic policy, philanthropic agendas, and cultural institutions. Although they are numerically small, their resource control amplifies their societal impact.

Income and statistics

A Pew Research Center analysis found that in the United States:
* 19% of adults lived in upper-class households (median household income of $187,872 in 2016).
* 52% were classified as middle class.
* 29% were classified as lower class.

These figures illustrate substantial income concentration at the top and notable disparities across classes.

How the upper class differs from middle and working classes

• Upper class: High wealth, high income, substantial power and influence.
• Middle class: Varied incomes; often professionals or civil servants with property ownership and greater economic security than the working class.
• Working (lower) class: Typically employed in lower-wage, often manual or service occupations with limited assets and power.

Despite their smaller share of wealth, upper-class members do not produce most goods and services—the majority of economic production and consumption is driven by middle- and working-class populations.

Class dynamics in developing economies

In many emerging or frontier economies, social structure may initially split into two main groups: a wealthy elite and a broad low-income population. As development proceeds, upgrades in jobs, education, and infrastructure create a middle class with rising disposable income. Over time, this middle class can diversify into lower-, middle-, and upper-middle segments, reshaping consumption patterns and political dynamics.

The upper-middle class

Between the middle and the truly wealthy sits the upper-middle class—professionals and managers whose incomes and education place them above average but short of the elite. Examples often include doctors, lawyers, and senior corporate professionals who enjoy higher-than-average living standards without the concentrated assets of the upper class.

Conclusion

The upper class represents a small but powerful segment of society defined by wealth, influence, and access to resources. Its composition has evolved from hereditary landholders to a more varied group that includes modern financiers, business leaders, and celebrities. Understanding these distinctions and how classes shift with economic development is important for discussions about income inequality, social mobility, and public policy.

Sources
* Pew Research Center, “The American Middle Class Is Stable in Size, but Losing Ground Financially to Upper-Income Families” (2018).