Pulling Apart:
A State-by-State Analysis of Income Trends

ARKANSAS

Inequality has remained at about the same level in Arkansas for nearly two decades. This can be observed by ranking all Arkansas families with children according to their income level, dividing them into five groups (or fifths) of equal size, and calculating the average income of each fifth of families. This analysis shows by the mid-1990s:

• The richest 20 percent of families with children had average incomes 9 times as large as the poorest 20 percent of families.

• The richest 20 percent of families with children had average incomes 2.6 times as large as the middle 20 percent of families.

The Long-Term Trend

Since the late 1970s, income inequality has remained at about the same level in Arkansas.

• The average income of the poorest fifth of families increased by $1,030 between the late 1970s and the mid-1990s, from $7,970 to $9,000.

• The average income of the middle fifth of families increased by $610 between the late 1970s and the mid-1990s, from $31,770 to $32,380.¹

• The average income of the richest fifth of families increased by $10,110 between the late 1970s and the mid-1990s, from $73,330 to $83,430.

The Recent Trend

Over the past decade, income inequality has moderated in Arkansas. However, the incomes of the richest fifth of families have increased somewhat faster than those of middle class families.

The gap between the top fifth of families and the bottom fifth of families decreased between the mid-1980s and the mid-1990s,⁽¹⁾ but the gap between the rich and the middle class remained about the same.

• The average income of the poorest fifth of families increased by $2,550 between the mid-1980s and the mid-1990s, from $6,450 to $9,000.

• The average income of the middle fifth of families increased by $1,990 between the mid-1980s and the mid-1990s, from $30,390 to $32,380.

• The average income of the richest fifth of families increased by $6,070 between the mid-1980s and the mid-1990s, from $77,360 to $83,430.¹

End Notes

1. The direction of this change was not statistically significant at the 95 percent level of confidence.

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