OfTheCross
Veteran
Where Is Wage Inequality Greatest?
While there are many metrics for measuring wage inequality, they tend to be highly correlated and exhibit similar patterns. We focus on the ratio of the wages earned by a worker at the 90th percentile of the wage distribution to the wages earned by a worker at the 10th percentile, often referred to as the 90/10 ratio, which we show in the map below. The metropolitan areas in copper and yellow—with 90/10 ratios above 6—are the most unequal places in the country, while the metropolitan areas in blue—with 90/10 ratios below 5—are the least unequal places.
Many large urban areas, such as New York City, Washington, D.C., Chicago, Houston, Los Angeles, and the San Francisco Bay area, are among the most unequal places. Inequality is also relatively high in parts of the South, such as metro areas in Texas, Louisiana, and Alabama. By contrast, wage inequality is lowest in metropolitan areas in the Midwest and the Great Lakes region, often referred to as the “Rust Belt,” as well as in Washington State and some parts of Florida.
Some Places Are Much More Unequal than Others - Liberty Street Economics
While there are many metrics for measuring wage inequality, they tend to be highly correlated and exhibit similar patterns. We focus on the ratio of the wages earned by a worker at the 90th percentile of the wage distribution to the wages earned by a worker at the 10th percentile, often referred to as the 90/10 ratio, which we show in the map below. The metropolitan areas in copper and yellow—with 90/10 ratios above 6—are the most unequal places in the country, while the metropolitan areas in blue—with 90/10 ratios below 5—are the least unequal places.
Many large urban areas, such as New York City, Washington, D.C., Chicago, Houston, Los Angeles, and the San Francisco Bay area, are among the most unequal places. Inequality is also relatively high in parts of the South, such as metro areas in Texas, Louisiana, and Alabama. By contrast, wage inequality is lowest in metropolitan areas in the Midwest and the Great Lakes region, often referred to as the “Rust Belt,” as well as in Washington State and some parts of Florida.
Some Places Are Much More Unequal than Others - Liberty Street Economics