Income Equality

We compare regions’ income inequality based on five measures. First we compare the Gini Coefficient, a statistical measure of inequality, which ranges from a hypothetical value of zero in a society where everyone’s income is equal to a value of one in a society where all income goes to one individual and everyone else gets nothing. We also examine poverty rates (based on the Federal poverty threshold), a measure of income inadequacy that accounts for household size, but not regional differences in cost of living. Specifically we compare both overall poverty rates and child poverty rates. Additionally we compare regions based on median household income, a measure which is not affected by differences in income among the highest paid households. Lastly we examine differences in growth of household median income between 2012 and 2013.

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