December 16, 1997

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 Long-Term Trend

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

 

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.


End Notes

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