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Measuring income inequality as a ratio

From fredblog.stlouisfed.org

U.S. Census data in FRED has helped us examine income inequality before, including mean and median income and the Gini ratio. Here, we examine income inequality through a different lens. The GeoFRED map above shows the level of income inequality across U.S. counties. This particular measure is the ratio of average (mean) income for the highest earners (top 20%) divided by the average income of the lowest earners (bottom 20%) for each county. The Census data track the average income over a five-year period, in this case 2014 to 2019, to account for the fact that people’s income changes from year to year. Measured this ... (full story)

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  • Category: Fundamental Analysis