December 16, 1997
Pulling
Apart:
A State-by-State Analysis of Income Trends
MAINE
Inequality has been increasing in Maine
for nearly two decades. This can be observed by ranking all
Maine 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 8 times as large as the
poorest 20 percent of families.
- The richest 20 percent of families
with children had average incomes 2.3 times as large as
the middle 20 percent of families.
The Long-Term Trend
Since the late 1970s, income inequality has
increased in Maine. 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 27 percent since the
1970s.
- The average income of the poorest
fifth of families fell by $450 between the late 1970s and
the mid-1990s, from $11,720 to $11,280.1
- The average income of the middle fifth
of families increased by $4,090 between the late 1970s
and the mid-1990s, from $35,790 to $39,890.
- The average income of the richest
fifth of families increased by $16,530 between the late
1970s and the mid-1990s, from $75,930 to $92,460.
The Recent Trend
Over the past decade, income inequality has
remained high in Maine.
- The average income of the poorest
fifth of families increased by $770 between the mid-1980s
and the mid-1990s, from $10,500 to $11,280.(1)
- The average income of the middle fifth
of families increased by $1,750 between the mid-1980s and
the mid-1990s, from $38,140 to $39,890.
- The average income of the richest
fifth of families increased by $8,160 between the
mid-1980s and the mid-1990s, from $84,300 to $92,460.1
End Notes
1. The direction of this change was not
statistically significant at the 95 percent level of confidence.