How Income Inequality in Illinois Compares to Other States | Illinois

Share on facebook
Share on twitter
Share on linkedin
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn


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

The income and wealth divide only appears to be growing wider. A January 2020 report published by the Pew Research Center found that over the last four decades, income growth for the top 5% of families by earnings has far outpaced income growth for families in lower income strata.

Based on the Gini coefficient, a measure of income inequality based on the distribution of income across a population, income inequality varies considerably across the United States. The Gini coefficient is a scale from 0 to 1 — 0 representing perfect equality and 1 representing the highest possible level of inequality. Nationwide, the Gini coefficient stands at 0.481.

The Gini coefficient in Illinois is 0.480 — in line with the national average but eighth highest among all 50 states.

Across the state, the average income among the top 20% of households by earnings stands at $245,173. The cohort accounts for 51.2% of all income earned in Illinois. Meanwhile, the average income among the bottom 20% of households by earnings is just $14,667, accounting for 3.1% of all earnings statewide.

Causes behind rising inequality are complex and varied. A report published by the National Bureau of Economic Research ties the rising disparity to a range of economic factors, including globalization, technological advancement, a stagnant minimum wage, and the decline of labor unions.

All data in this story, including the Gini coefficient, average household income by quintile, and share of aggregate household income by quintile are from the U.S. Census Bureau’s 2019 American Community Survey.

 

Rank State Gini coefficient Avg. income of top earning 20% of households ($) Avg. income of lowest earning 20% of households ($)
1 New York 0.515 291,906 13,372
2 Connecticut 0.502 306,153 16,037
3 Louisiana 0.498 190,038 9,426
4 Mississippi 0.490 169,318 9,715
5 California 0.487 295,369 16,981
6 Florida 0.481 217,456 14,026
7 Massachusetts 0.480 299,188 16,450
8 Illinois 0.480 245,173 14,667
9 Georgia 0.479 222,399 13,668
10 New Jersey 0.478 305,190 18,249
11 New Mexico 0.477 181,940 10,976
12 Kentucky 0.476 183,549 11,367
13 Texas 0.475 228,924 14,556
14 Arkansas 0.475 173,941 11,555
15 Tennessee 0.475 199,456 13,144
16 South Carolina 0.475 198,951 12,334
17 Pennsylvania 0.475 223,499 14,295
18 North Carolina 0.474 204,129 13,301
19 Alabama 0.474 180,469 10,916
20 Oklahoma 0.474 192,061 12,507
21 Nevada 0.471 220,208 14,425
22 Virginia 0.469 265,171 17,138
23 Ohio 0.465 199,074 13,601
24 West Virginia 0.464 163,240 10,649
25 Michigan 0.463 201,676 13,976
26 Missouri 0.463 194,185 13,294
27 Rhode Island 0.463 228,951 14,829
28 Montana 0.460 191,819 13,899
29 Arizona 0.459 209,819 14,754
30 Indiana 0.458 193,279 13,987
31 Washington 0.458 262,118 18,576
32 Maryland 0.456 280,115 18,902
33 North Dakota 0.456 209,985 15,064
34 Colorado 0.455 255,114 18,417
35 Delaware 0.451 224,894 15,945
36 Kansas 0.450 200,932 15,090
37 Oregon 0.450 215,026 15,597
38 Maine 0.449 190,606 14,674
39 Vermont 0.447 200,816 15,054
40 Minnesota 0.443 233,949 18,156
41 Iowa 0.442 192,979 15,270
42 New Hampshire 0.441 241,891 19,002
43 Nebraska 0.440 197,997 15,965
44 Hawaii 0.440 252,492 18,445
45 Wisconsin 0.439 197,977 16,034
46 Alaska 0.438 234,221 18,408
47 South Dakota 0.436 184,714 15,519
48 Wyoming 0.435 196,029 15,528
49 Idaho 0.434 188,036 16,199
50 Utah 0.427 227,022 20,124

 



Source link

Caleb Alexander

Caleb Alexander

Sign up for our Newsletter

Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit