States with the largest income gaps – 24/7 Wall St.

The United States has some the highest levels of income and wealth inequality in the world. US Federal Reserve data shows richest 10% of Americans control $ 93.8 trillionn, more than double the $ 40.3 trillion in the hands of the remaining 90 percent of Americans.

The gap between income and wealth only seems to be widening. A January 2020 report released by the Pew Research Center found that over the past four decades, revenue growth for top 5% of famillion dollars per income far exceeded the income growth of families in lower income strata.

Income inequality varies widely in the United States, and in some parts of the country it is much more pronounced than in others.

Using data from the 2019 American Community Survey from the US Census Bureau, 24/7 Wall St. identified the states with the largest income gaps. States are ranked according to their Gini coefficient, a measure of income inequality based on the distribution of income in a population on a scale of 0 to 1 – 0 representing perfect equality and 1 representing the highest level of inequality. high possible.

Depending on the state, income inequality ranges from a Gini score of 0.427 to 0.515. Nationally, the Gini coefficient is 0.481.

The causes of the rise in inequalities are complex and varied. A published report speak The National Bureau of Economic Research links the growing disparity to a range of economic factors, including globalization, technological advances, a stagnant minimum wage and the decline of unions.

Click here to see the states with the largest income gaps
Click here to read our detailed methodology

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