December 16, 1997
Pulling
Apart:
A State-by-State Analysis of Income Trends
WASHINGTON
Inequality has been increasing
in Washington for nearly two decades. This can be observed by
ranking all Washington 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 11 times as large as
the poorest 20 percent of families.
- The richest 20 percent of families
with children had average incomes 2.7 times as large as
the middle 20 percent of families.
The Long-Term Trend
Since the late 1970s, income inequality has
increased in Washington. 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 grew by 38 percent since the
1970s.
- The average income of the poorest
fifth of families fell by $1,570 between the late 1970s
and the mid-1990s, from $11,680 to $10,120.
- The average income of the middle fifth
of families fell by $2,150 between the late 1970s and the
mid-1990s, from $43,420 to $41,280.
- The average income of the richest
fifth of families increased by $18,240 between the late
1970s and the mid-1990s, from $94,270 to $112,500.
The Recent Trend
Over the past decade, income inequality has
remained about level in Washington.
- The average income of the poorest
fifth of families increased by $1,250 between the
mid-1980s and the mid-1990s, from $8,870 to $10,120.(1)
- The average income of the middle fifth
of families increased by $720 between the mid-1980s and
the mid-1990s, from $40,560 to $41,280.
- The average income of the richest
fifth of families inreased by $8,370 between the
mid-1980s and the mid-1990s, from $104,131 to $112,500.
End Notes
1. The direction of this change was not
statistically significant at the 95 percent level of confidence.