CFED Scorecard

CFED Assets & Opportunity Scorecard

Financial Assets & Income
Income Inequality
Definition

Ratio of the annual household income of households at the 80th percentile of the income distribution to households at the 20th percentile, 2014.

Description

In the years since the recession, income inequality has become more entrenched, with nearly all of the gains made during the subsequent economic recovery occurring at the top of the income and wealth distributions. Recent research has shown that higher income inequality contributes to slower or negative economic growth, and inequality in America is at its highest level since the early part of the 20th century. This measure captures the income gap between the uppermost and bottommost tiers of the income distribution.

The richest 20% of households in United States make 5x as much income annually compared to the poorest 20%

Income Inequality, 2014

StateHousehold Income,
Top Quintile (%)
Household Income,
Bottom Quintile (%)
RatioRank
United States $109,918 $21,883 5.02
Alabama $90,153 $17,143 5.26 43
Alaska $130,410 $30,656 4.25 4
Arizona $100,843 $20,975 4.81 29
Arkansas $82,893 $17,738 4.67 24
California $128,978 $24,202 5.33 45
Colorado $119,599 $26,219 4.56 19
Connecticut $141,281 $27,732 5.09 40
Delaware $115,973 $26,824 4.32 10
District of Columbia $161,348 $22,185 7.27 51
Florida $95,942 $20,169 4.76 27
Georgia $100,843 $20,169 5.00 37
Hawaii $127,062 $29,718 4.28 7
Idaho $90,758 $21,278 4.27 6
Illinois $115,969 $23,194 5.00 37
Indiana $93,985 $21,177 4.44 17
Iowa $100,843 $23,194 4.35 12
Kansas $100,843 $23,093 4.37 13
Kentucky $89,750 $17,244 5.20 41
Louisiana $96,809 $16,942 5.71 50
Maine $95,800 $20,572 4.66 23
Maryland $141,774 $31,261 4.54 18
Massachusetts $141,180 $25,211 5.60 48
Michigan $98,826 $20,269 4.88 33
Minnesota $116,171 $26,723 4.35 11
Mississippi $81,682 $15,126 5.40 47
Missouri $94,288 $20,169 4.68 26
Montana $90,758 $19,563 4.64 22
Nebraska $101,851 $23,900 4.26 5
Nevada $97,620 $23,093 4.23 2
New Hampshire $126,053 $29,244 4.31 9
New Jersey $145,617 $27,943 5.21 42
New Mexico $91,968 $17,446 5.27 44
New York $124,036 $21,782 5.69 49
North Carolina $93,784 $20,068 4.67 25
North Dakota $110,523 $25,009 4.42 16
Ohio $97,918 $20,169 4.86 32
Oklahoma $92,775 $20,169 4.60 20
Oregon $100,843 $21,177 4.76 28
Pennsylvania $106,187 $21,883 4.85 31
Rhode Island $114,053 $21,177 5.39 46
South Carolina $91,262 $18,958 4.81 30
South Dakota $93,884 $21,429 4.38 14
Tennessee $90,758 $18,252 4.97 35
Texas $110,423 $21,782 5.07 39
Utah $108,910 $28,236 3.86 1
Vermont $102,859 $24,202 4.25 3
Virginia $130,591 $26,219 4.98 36
Washington $118,591 $25,715 4.61 21
West Virginia $82,691 $16,942 4.88 34
Wisconsin $100,036 $23,395 4.28 8
Wyoming $106,792 $24,202 4.41 15

Change in Income Inequality

Income Inequality
State200620072008200920102011201220132014
United States 4.65 4.67 4.69 4.79 4.83 4.94 5.00 5.02 5.02
Alabama 5.17 5.13 4.99 5.10 5.17 5.16 5.31 5.35 5.26
Alaska 4.04 3.94 3.61 3.75 4.32 3.83 4.67 4.10 4.25
Arizona 4.26 4.25 4.30 4.49 4.44 4.64 4.63 4.80 4.81
Arkansas 4.67 4.83 4.69 4.73 4.65 4.99 4.73 4.84 4.67
California 4.68 4.74 4.86 4.84 4.97 5.21 5.22 5.21 5.33
Colorado 4.40 4.30 4.39 4.41 4.64 4.65 4.58 4.52 4.56
Connecticut 4.48 4.44 4.70 4.79 4.91 5.11 5.12 5.19 5.09
Delaware 4.19 4.23 4.11 4.29 4.40 4.27 4.35 4.44 4.32
District of Columbia 6.79 6.49 6.60 6.96 6.78 6.61 6.77 7.50 7.27
Florida 4.37 4.33 4.47 4.43 4.57 4.69 4.74 4.67 4.76
Georgia 4.66 4.63 4.75 4.89 4.92 5.09 5.20 5.04 5.00
Hawaii 4.31 3.88 4.10 4.16 4.41 4.16 4.49 4.49 4.28
Idaho 3.88 3.75 3.79 3.91 4.11 4.27 4.17 3.99 4.27
Illinois 4.63 4.53 4.62 4.75 4.72 4.89 4.95 5.05 5.00
Indiana 4.11 4.08 4.24 4.25 4.27 4.43 4.45 4.50 4.44
Iowa 3.95 4.07 4.07 4.22 4.14 4.23 4.28 4.19 4.35
Kansas 4.23 4.20 4.13 4.31 4.34 4.31 4.35 4.38 4.37
Kentucky 5.04 4.99 5.06 5.04 5.06 5.16 5.18 5.12 5.20
Louisiana 5.42 5.53 5.14 5.21 5.30 5.74 5.62 5.80 5.71
Maine 4.37 4.22 4.31 4.23 4.35 4.59 4.48 4.58 4.66
Maryland 4.03 4.19 4.18 4.34 4.42 4.53 4.57 4.61 4.54
Massachusetts 4.99 4.92 4.97 5.07 5.34 5.44 5.56 5.54 5.60
Michigan 4.44 4.51 4.53 4.63 4.61 4.80 4.81 4.75 4.88
Minnesota 4.03 4.04 4.12 4.20 4.31 4.35 4.35 4.43 4.35
Mississippi 5.26 5.24 5.32 5.24 5.14 5.20 5.28 5.49 5.40
Missouri 4.41 4.41 4.36 4.47 4.59 4.61 4.71 4.59 4.68
Montana 4.20 4.35 4.19 4.33 4.27 4.31 4.45 4.74 4.64
Nebraska 4.10 4.12 4.04 4.16 4.18 4.30 4.17 4.41 4.26
Nevada 3.83 3.85 3.89 4.01 4.32 4.32 4.27 4.37 4.23
New Hampshire 3.98 3.82 4.05 4.16 4.07 4.30 4.49 4.29 4.31
New Jersey 4.62 4.63 4.54 4.77 4.92 5.02 5.10 5.22 5.21
New Mexico 4.86 4.75 4.77 4.77 4.96 5.23 5.29 5.35 5.27
New York 5.19 5.31 5.29 5.41 5.35 5.54 5.63 5.71 5.69
North Carolina 4.54 4.67 4.50 4.73 4.67 4.86 4.90 4.74 4.67
North Dakota 4.36 4.42 4.29 4.47 4.31 4.50 4.43 4.46 4.42
Ohio 4.47 4.49 4.48 4.60 4.59 4.78 4.79 4.75 4.86
Oklahoma 4.60 4.59 4.55 4.56 4.53 4.73 4.61 4.62 4.60
Oregon 4.26 4.29 4.45 4.39 4.46 4.57 4.69 4.62 4.76
Pennsylvania 4.65 4.57 4.62 4.60 4.70 4.76 4.81 4.84 4.85
Rhode Island 4.70 5.15 5.00 4.96 5.07 5.28 5.50 5.17 5.39
South Carolina 4.68 4.66 4.74 4.89 4.81 4.96 4.85 4.85 4.81
South Dakota 4.21 3.90 4.02 4.20 4.24 4.24 4.23 4.03 4.38
Tennessee 4.77 4.62 4.61 4.79 4.81 4.86 4.72 4.89 4.97
Texas 4.84 4.73 4.83 4.87 4.80 4.92 5.00 4.97 5.07
Utah 3.64 3.57 3.64 3.71 3.90 3.94 3.95 3.90 3.86
Vermont 4.12 4.13 4.00 4.23 4.39 4.26 4.13 4.59 4.25
Virginia 4.40 4.47 4.62 4.60 4.73 4.78 4.96 4.88 4.98
Washington 4.20 4.19 4.16 4.29 4.36 4.43 4.47 4.71 4.61
West Virginia 4.72 4.93 4.90 4.85 4.79 5.12 5.19 4.92 4.88
Wisconsin 4.00 4.03 3.94 4.17 4.21 4.29 4.29 4.41 4.28
Wyoming 3.87 3.95 3.96 3.97 4.23 3.95 4.33 4.17 4.41

Definition

Ratio of the annual household income of households at the 80th percentile of the income distribution to households at the 20th percentile, 2014.

Calculated by dividing household income at the 80th percentile by household income at the 20th percentile. Income quintiles are calculated at the state level, and the income thresholds used to define quintiles can be found here.

A ratio of 1 indicates perfect equality; the higher the ratio, the greater the inequality.

Source

2014 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2015.

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