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 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.