Pulling Apart - Dictrict of Columbia Factsheet

December 16, 1997

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

DISTRICT OF COLUMBIA

Inequality has been increasing in the District of Columbia for nearly two decades. This can be observed by all District of Columbia 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 over 28 times as large as the poorest 20 percent of families.

The richest 20 percent of families with children had average incomes 5 times as large as the middle 20 percent of families.

The Long-Term Trend

Since the late 1970s, income inequality has increased in the District of Columbia. The long-term economic growth of the past two decades was not shared evenly among the poor, the rich, and the middle class. Instead, the top fifth of families with children fared substantially better than other income groups.

The gap between the top fifth of families and the bottom fifth of families more than doubled since the 1970s.

The average income of the poorest fifth of families fell by $1,980 between the late 1970s and the mid-1990s, from $7,280 to $5,290.

The average income of the middle fifth of families fell by $1,610 between the late 1970s and the mid-1990s, from $30,680 to $29,080.

The average income of the richest fifth of families increased by $53,870 between the late 1970s and the mid-1990s, from $95,640 to $149,510.

The Recent Trend

Over the past decade, income inequality has worsened in the District of Columbia. The average income of the richest fifth of families has increased while the incomes of poor and middle class families declined.

The gap between the top fifth of families and the bottom fifth of families and between the rich and middle class increased between the mid-1980s and the mid-1990s.

The average income of the poorest fifth of families decreased by $1,110 between the mid-1980s and the mid-1990s, from $6,400 to $5,300.

The average income of the middle fifth of families decreased by nearly $2,800 between the mid-1980s and the mid-1990s, from $31,870 to $29,080.

The average income of the richest fifth of families increased by $36,060 between the mid-1980s and the mid-1990s, from $113,450 to $149,510.