How income inequality in Minnesota compares to other states
The United States has some of the highest levels of income and wealth inequality in the world. Data from the US Federal Reserve shows that the richest 10% of Americans control $ 93.8 trillion, more than double the $ 40.3 trillion held by the remaining 90% of Americans.
The gap between income and wealth only seems to be widening. A January 2020 report released by the Pew Research Center found that over the past four decades, the income growth of the top 5% of families in terms of income has far exceeded the income growth of families in the lower strata. of income.
Based on the Gini coefficient, a measure of income inequality based on the distribution of income in a population, income inequality varies widely across the United States. The Gini coefficient is a scale from 0 to 1 – 0 representing perfect equality and 1 representing the highest possible level of inequality. Nationally, the Gini coefficient is 0.481.
Minnesota’s Gini coefficient is 0.443 – lower than the national average and 11th lowest among the 50 states.
Statewide, the average income of the top 20% of households in terms of income is $ 233,949. The cohort accounts for 48.2% of all income earned in Minnesota. Meanwhile, the average income of the poorest 20% of households in terms of income is only $ 18,156, which is 3.7% of all income statewide.
The causes of rising inequalities are complex and varied. A report released by the National Bureau of Economic Research links the growing disparity to a range of economic factors, including globalization, technological advances, a stagnant minimum wage and the decline of unions.
All of the data in this story, including the Gini coefficient, average household income by quintile, and share of aggregate household income by quintile, come from the 2019 American Community Survey from the U.S. Census Bureau.