December 16, 1997
Pulling
Apart:
A State-by-State Analysis of Income Trends
WISCONSIN
Inequality has been increasing in Wisconsin
for nearly two decades. This can be observed by ranking all
Wisconsin 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 2.2 times as large as
the middle 20 percent of families.
The Long-Term Trend
Since the late 1970s, income inequality has
increased in Wisconsin. 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 30 percent since the
1970s.
- The average income of the poorest
fifth of families fell by $2,330 between the late 1970s
and the mid-1990s, from $15,730 to $13,400.
- The average income of the middle fifth
of families increased by $1,910 between the late 1970s
and the mid-1990s, from $45,660 to $47,570.
- The average income of the richest
fifth of families increased by more than $9,790 between
the late 1970s and the mid-1990s, from $93,760 to
$103,550.
The Recent Trend
Over the past decade, income inequality has
remained about level in Wisconsin.
- The average income of the poorest
fifth of families increased by $1,230 between the
mid-1980s and the mid-1990s, from $12,170 to $13,400.
- The average income of the middle fifth
of families increased by $4,480 between the mid-1980s and
the mid-1990s, from $43,090 to $47,570.
- The average income of the richest
fifth of families increased by $11,040 between the
mid-1980s and the mid-1990s, from $92,510 to $103,550.