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A coefficient of 0 represents perfect equality and a coefficient of 1 represents perfect inequality.
Income inequality index us. Income inequality in the us last year reached its highest level in more than half a century. The ratio of the average income of the richest 10 to the poorest 10. The gini index is used to gauge economic inequality by measuring income distribution or wealth distribution. P90 p10 is the ratio of the upper bound value of the ninth decile i e.
Dc and puerto rico saw the highest gini index readings while utah was among the lowest. In 2018 the average income for a household in the united states was 63 179. A gini index of 0 expresses perfect equality while index of 100 expresses maximal inequality. Income and wealth inequality in the us makes this the pressing issue of our time.
R p 20 the ratio of the average income of the richest 20 to the poorest 20. Cbo reported that the share of after tax income received by the top 1 peaked in 2007 at 16 6. Latin america and africa have the highest inequality with a gini of 48 82 and 44 26 respectively whereas europe and more advanced economies have lower income inequality. The coefficient ranges from 0 to 1 with 0 representing 0 and 1 representing 100.
In this study the poverty line is worked out as half the median income for the country. S80 s20 is the ratio of the average income of the 20 richest to the 20 poorest. P90 p50 of the upper bound value of the ninth decile to the median income. And p50 p10 of median income to the upper bound.
The united states could improve income inequality with employment training and investing in education. United states census bureau. But it s much worse than in 1968 when it was just 0 386. The nationwide protests following the death of a black man george floyd at the hands of white police officers has once again shone a spotlight on the long standing racial divide in the us.
The 10 of people with highest income to that of the first decile. The household income gini index for the united states was 45 6 in 2009 and 45 4 in 2015 indicating a reduction in inequality during that time. Gini index which measures distribution and is often used to measure income differences was 0 483 in 2018.
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