Income Inequality

The rise in inequality experienced in the United States in the past three-and-a-half decades is not just a story of those in the financial sector in the greater New York City metropolitan area reaping outsized rewards from speculation in financial markets. While many of the highest-income families do live in states such as New York and Connecticut, IRS data make clear that rising inequality and increases in top 1 percent incomes affect every state.

The rise between 1979 and 2007 in top 1 percent incomes relative to the bottom 99 percent represents a sharp reversal of the trend that prevailed in the mid-20th century. This earlier era was characterized by a rising minimum wage, low levels of unemployment after the 1930s, widespread collective bargaining in private industries, and a cultural and political environment in which it was outrageous for executives to receive outsized bonuses while laying off workers. Today, millions of Americans feel tremendous anxiety about their grasp on the American Dream.

In 2013, income inequality was much higher in many states, metropolitan areas, and counties than for the United States overall. In 2013 the top 1 percent of families nationally made 25.3 times as much as the bottom 99 percent (Sommeiller, Price, and Wazeter 2016).

Publications

Publication

Guaranteed Income: Increasing Employment and Helping Families Thrive

A report on a recently concluded statewide guaranteed income pilot program with 330 immigrant families demonstrated unrestricted cash assistance programs allowed for low-wage earners to pursue better jobs, increase their educational levels, and improve other critical outcomes for their children.

The 18-month guaranteed income (GI) pilot program was created in 2022 to address poverty and economic security for low-income, mixed-immigration status families and workers in New Mexico. Immigrant families were chosen for the pilot because polling showed these families struggled significantly more than the general population during the pandemic because of numerous exclusions from the country’s safety net; these exclusions were due to lack of a social security number even if the household had U.S.-citizen children.

Publication

Facts From the Frontline: Getting By in Milwaukee’s Abundant Low Wage Service Jobs

  • March 22, 2023
  • Pablo Aquiles-Sanchez, and Laura Dresser

Over the past 40 years, the union manufacturing jobs that once flourished in Milwaukee have been replaced by low-wage, non-union service jobs, exacerbating racial and economic disparities. Properly addressing the intertwined issues of declining union and manufacturing jobs and growing racial disparity starts with restructuring the city’s service sector. In this report, we take a deep look into the city’s service jobs across multiple industries and occupations. We also hear from workers themselves on what is empowering them and what remains unaddressed on the city’s economic frontlines.

Publication

Capital gains drive record breaking inequality

Capital gains constitute one of the main drivers of income inequality, which stands at record levels in Oregon. The term capital gains refers to income generated from the profitable sale of assets such as stocks, bonds, real estate, a business, or even a work of art. Because such assets are highly concentrated in the hands of the rich, the income produced by the sale of those assets flow to the top.

Data for the People

  • December 31, 2022
  • Tyler Mac Innis, Janet Bauer, Nhi Nguyen

All Oregonians deserve to live in dignity — to enjoy economic security and the possibility to thrive. This is doable. Oregon, after all, is a prosperous place, with enough resources for everyone to live well.

But for a vast number of Oregonians today, economic security feels like an impossible dream. At a time when the income of the richest Oregonians has reached record highs, many low-paid Oregonians can’t afford basic necessities such as food, housing, and health care. Economic insecurity afflicts Oregonians of all races. As a result of an economy designed to benefit the white and wealthy, it is especially pronounced among Black, Indigenous and other Oregonians of color.

Data for the People provides the latest publicly-available data on the economic well-being of Oregonians. To better reflect the realities of particular communities, wherever possible we break down data by race and ethnicity using Race, Ethnicity, Language, and Disability (REAL-D) categories developed by the Oregon Health Authority (OHA). For more information about this process, as well as data sources used throughout, see our detailed methodology.

The data make clear the need for Oregon to create an economy that is more equitable in its prosperity. OCPP’s Action Plan for the People lays out a policy roadmap to shift the economic system to benefit all Oregonians, not just the wealthy few. We invite you to explore this data set.