Wharton’s business school students failed when they were asked by a professor on the amount of the average American salary.
The business school students incorrectly guessed that the average American worker’s annual pay runs into the six figures, an amount that is grossly over wages as calculated by the Social Security Administration.
The average annual wage in 2021 was $53,383 and the median wage was $34,612.
The Labor Department said median weekly earnings were $1,010 or an annualized $52,520 during the fourth quarter.
Nina Strohminger, a professor of legal studies and business ethics, tweeted Wednesday that 25% of her students believed the average American makes at least $100,000.
Her tweet elicited thousands of responses from people who were surprised at the lack of knowledge about the wages that Americans earn.
Strohminger responded that she does not believe this lack of information is limited to just Wharton business school students and tweeted “people are notoriously bad at making this kind of estimate, thinking the gap between rich and poor is smaller than it is.”
One person said there could be a correlation of executives with MBAs who forgo employee protections, especially in areas on salary and benefits. Another person tweeted that people earning lower wages are already aware of the gap in income.