
The United States has some of the highest levels of income and wealth inequality in the world. U.S. Federal Reserve data shows that the wealthiest 10% of Americans control $93.8 trillion, more than double the $40.3 trillion in the hands of the remaining 90% of Americans.
The income and wealth divide only appears to be growing wider. A January 2020 report published by the Pew Research Center found that over the last four decades, income growth for the top 5% of families by earnings has far outpaced income growth for families in lower income strata.
Based on the Gini coefficient, a measure of income inequality based on the distribution of income across a population, income inequality varies considerably 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. Nationwide, the Gini coefficient stands at 0.481.
The Gini coefficient in Texas is 0.475 — lower than the national average but 13th highest among all 50 states.
Across the state, the average income among the top 20% of households by earnings stands at $228,924. The cohort accounts for 51.0% of all income earned in Texas. Meanwhile, the average income among the bottom 20% of households by earnings is just $14,556, accounting for 3.3% of all earnings statewide.
Causes behind rising inequality are complex and varied. A report published by the National Bureau of Economic Research ties the rising disparity to a range of economic factors, including globalization, technological advancement, a stagnant minimum wage, and the decline of labor unions.
All data in this story, including the Gini coefficient, average household income by quintile, and share of aggregate household income by quintile are from the U.S. Census Bureau’s 2019 American Community Survey.
Rank | State | Gini coefficient | Avg. income of top earning 20% of households ($) | Avg. income of lowest earning 20% of households ($) |
---|---|---|---|---|
1 | New York | 0.515 | 291,906 | 13,372 |
2 | Connecticut | 0.502 | 306,153 | 16,037 |
3 | Louisiana | 0.498 | 190,038 | 9,426 |
4 | Mississippi | 0.490 | 169,318 | 9,715 |
5 | California | 0.487 | 295,369 | 16,981 |
6 | Florida | 0.481 | 217,456 | 14,026 |
7 | Massachusetts | 0.480 | 299,188 | 16,450 |
8 | Illinois | 0.480 | 245,173 | 14,667 |
9 | Georgia | 0.479 | 222,399 | 13,668 |
10 | New Jersey | 0.478 | 305,190 | 18,249 |
11 | New Mexico | 0.477 | 181,940 | 10,976 |
12 | Kentucky | 0.476 | 183,549 | 11,367 |
13 | Texas | 0.475 | 228,924 | 14,556 |
14 | Arkansas | 0.475 | 173,941 | 11,555 |
15 | Tennessee | 0.475 | 199,456 | 13,144 |
16 | South Carolina | 0.475 | 198,951 | 12,334 |
17 | Pennsylvania | 0.475 | 223,499 | 14,295 |
18 | North Carolina | 0.474 | 204,129 | 13,301 |
19 | Alabama | 0.474 | 180,469 | 10,916 |
20 | Oklahoma | 0.474 | 192,061 | 12,507 |
21 | Nevada | 0.471 | 220,208 | 14,425 |
22 | Virginia | 0.469 | 265,171 | 17,138 |
23 | Ohio | 0.465 | 199,074 | 13,601 |
24 | West Virginia | 0.464 | 163,240 | 10,649 |
25 | Michigan | 0.463 | 201,676 | 13,976 |
26 | Missouri | 0.463 | 194,185 | 13,294 |
27 | Rhode Island | 0.463 | 228,951 | 14,829 |
28 | Montana | 0.460 | 191,819 | 13,899 |
29 | Arizona | 0.459 | 209,819 | 14,754 |
30 | Indiana | 0.458 | 193,279 | 13,987 |
31 | Washington | 0.458 | 262,118 | 18,576 |
32 | Maryland | 0.456 | 280,115 | 18,902 |
33 | North Dakota | 0.456 | 209,985 | 15,064 |
34 | Colorado | 0.455 | 255,114 | 18,417 |
35 | Delaware | 0.451 | 224,894 | 15,945 |
36 | Kansas | 0.450 | 200,932 | 15,090 |
37 | Oregon | 0.450 | 215,026 | 15,597 |
38 | Maine | 0.449 | 190,606 | 14,674 |
39 | Vermont | 0.447 | 200,816 | 15,054 |
40 | Minnesota | 0.443 | 233,949 | 18,156 |
41 | Iowa | 0.442 | 192,979 | 15,270 |
42 | New Hampshire | 0.441 | 241,891 | 19,002 |
43 | Nebraska | 0.440 | 197,997 | 15,965 |
44 | Hawaii | 0.440 | 252,492 | 18,445 |
45 | Wisconsin | 0.439 | 197,977 | 16,034 |
46 | Alaska | 0.438 | 234,221 | 18,408 |
47 | South Dakota | 0.436 | 184,714 | 15,519 |
48 | Wyoming | 0.435 | 196,029 | 15,528 |
49 | Idaho | 0.434 | 188,036 | 16,199 |
50 | Utah | 0.427 | 227,022 | 20,124 |
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.