December 16, 1997
Pulling
Apart:
A State-by-State Analysis of Income Trends
VERMONT
Inequality has been increasing in Vermont
for nearly two decades. This can be observed by ranking all Vermont
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 7 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
remained approximately level in Vermont. The long-term economic
growth of the past two decades was shared evenly among the poor,
the rich, and the middle class.
The gap between the top fifth of families
and the bottom fifth of families grew by 13 percent since the
1970s.1
- The average income of the poorest
fifth of families rose by $360 between the late 1970s and
the mid-1990s, from $12,750 to $13,110.(1)
- The average income of the middle fifth
of families increased by $6,130 between the late 1970s
and the mid-1990s, from $36,990 to $43,110.
- The average income of the richest
fifth of families increased by $13,360 between the late
1970s and the mid-1990s, from $84,540 to $97,900.
The Recent Trend
Over the past decade, income inequality has
remained about level in Vermont.
- The average income of the poorest
fifth of families increased by $780 between the mid-1980s
and the mid-1990s, from $12,330 to $13,110.1
- The average income of the middle fifth
of families increased by $2,230 between the mid-1980s and
the mid-1990s, from $40,880 to $43,110.
- The average income of the richest
fifth of families increased by $4,890 between the
mid-1980s and the mid-1990s, from $93,010 to $97,900.1
End Notes
1. The direction of this change was not
statistically significant at the 95 percent level of confidence.