Pulling Apart - Rhode Island Factsheet

December 16, 1997

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

RHODE ISLAND

Inequality has been increasing in Rhode Island for nearly two decades. This can be observed by ranking all Rhode Island 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 11 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 increased in Rhode Island. 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 57 percent since the 1970s. The gap between the rich and the poor increased faster than in all but 18 states.

The average income of the poorest fifth of families fell by $1,990 between the late 1970s and the mid-1990s, from $11,900 to $9,910.

The average income of the middle fifth of families increased by $1,510 between the late 1970s and the mid-1990s, from $41,090 to $42,590.

The average income of the richest fifth of families increased by $26,200 between the late 1970s and the mid-1990s, from $84,810 to $111,020.

The Recent Trend

Over the past decade, income inequality has increased in Rhode Island. While the average incomes of most families with children have decreased since the mid-1980s, the average incomes of the richest fifth of families have risen.

The gap between the top fifth of families and the bottom fifth of families increased between the mid-1980s and the mid-1990s faster than in all but 11 states. The gap between the rich and the middle class increased faster than in all but 10 states.

The average income of the poorest fifth of families decreased by $1,370 between the mid-1980s and the mid-1990s, from $11,290 to $9,910.

The average income of the middle fifth of families decreased by $3,660 between the mid-1980s and the mid-1990s, from $46,260 to $42,590.

The average income of the richest fifth of families increased by $12,540 between the mid-1980s and the mid-1990s, from $98,470 to $111,020.