Income Inequality in United States
United States
Explore national- and state-level data for hundreds of health, environmental and socioeconomic measures, including background information about each measure. Use features on this page to find measures; view subpopulations, trends and rankings; and download and share content.
United States Value:
4.87
Ratio of median household income at the 80th percentile to median household income at the 20th percentile
Income Inequality in depth:
Appears In:
About Income Inequality
US Value: 4.87
Top State(s): Utah: 3.76
Bottom State(s): New York: 5.78
Definition: Ratio of median household income at the 80th percentile to median household income at the 20th percentile
Data Source and Years(s): U.S. Census Bureau, American Community Survey, 2023
Suggested Citation: America's Health Rankings analysis of U.S. Census Bureau, American Community Survey, United Health Foundation, AmericasHealthRankings.org, accessed 2024.
Research shows an association between higher income disparity and poorer overall population health. Income disparity generates chronic stress, which can lead to negative health outcomes.
Income inequality has increased over the past 50 years in the United States, with the top 20% of earners receiving more than half of all U.S. income in 2023. The negative impacts of income inequality on the U.S. economy are expected to worsen in coming years, diminishing gross domestic product (GDP) growth. Compared with other countries, the United States has higher income inequality than most other Organization of Economic Cooperation & Development countries.
Income inequality affects society as a whole. However, those with the lowest incomes suffer the most. Populations more affected by income inequality include:
- Black adults, who consistently have the lowest median income compared with Asian, non-Hispanic white and Hispanic households.
- Women compared with men.
- Adults with low educational attainment. Lower educational attainment is associated with worse jobs and lower earnings.
- Those living in nonmetropolitan areas compared with those living in metropolitan areas.
Investing in education is an effective strategy to reduce income disparity. According to a 2019 study, if every state increased its population of college graduates by 1%, it would increase the national GDP by an estimated $103.5 billion. Another important area of focus for policymakers is redistributive tax policies, such as the earned income tax credit, which has been proven to reduce wealth disparities. The Peterson Institute for International Economics offers additional solutions from inequality experts for reducing income inequality, which include expanding tax policies, improving access to education and child care and increasing the federal minimum wage.
Avanceña, Anton L. V., Ellen Kim DeLuca, Bradley Iott, Amanda Mauri, Nicholas Miller, Daniel Eisenberg, and David W. Hutton. “Income and Income Inequality Are a Matter of Life and Death. What Can Policymakers Do About It?” American Journal of Public Health 111, no. 8 (August 2021): 1404–8. https://doi.org/10.2105/AJPH.2021.306301.
Bivens, Josh. “Inequality Is Slowing US Economic Growth.” Washington, D.C.: Economic Policy Institute, December 12, 2017. http://epi.org/136654.
Bor, Jacob, Gregory H Cohen, and Sandro Galea. “Population Health in an Era of Rising Income Inequality: USA, 1980–2015.” The Lancet 389, no. 10077 (April 2017): 1475–90. https://doi.org/10.1016/S0140-6736(17)30571-8.
Guzman, Gloria, and Melissa Kollar. “Income in the United States: 2023.” Washington, D.C.: U.S. Census Bureau, September 2024. https://www2.census.gov/library/publications/2024/demo/p60-282.pdf.
Holtz-Eakin, Douglas, and Tom Lee. “The Economic Benefits of Educational Attainment.” American Action Forum, June 4, 2019. https://www.americanactionforum.org/project/economic-benefits-educational-attainment/.
Hoynes, Hilary W., and Ankur J. Patel. “Effective Policy for Reducing Inequality? The Earned Income Tax Credit and the Distribution of Income.” Working Paper 21340. National Bureau of Economic Research, July 2015. https://doi.org/10.3386/w21340.
Ma, Jennifer, and Matea Pender. “Education Pays 2023: The Benefits of Higher Education for Individuals and Society.” Trends in Higher Education Series. College Board, 2023. https://research.collegeboard.org/media/pdf/education-pays-2023.pdf.
Pickett, Kate E., and Richard G. Wilkinson. “Income Inequality and Health: A Causal Review.” Social Science & Medicine 128 (March 2015): 316–26. https://doi.org/10.1016/j.socscimed.2014.12.031.
“Why Education Matters to Health: Exploring the Causes.” Issue Brief #2. Education and Health Initiative. Richmond, VA: The VCU Center on Society and Health and Robert Wood Johnson Foundation, April 2014. https://societyhealth.vcu.edu/media/society-health/pdf/test-folder/CSH-EHI-Issue-Brief-2.pdf.
Current Reports
America’s Health Rankings builds on the work of the United Health Foundation to draw attention to public health and better understand the health of various populations. Our platform provides relevant information that policymakers, public health officials, advocates and leaders can use to effect change in their communities.
We have developed detailed analyses on the health of key populations in the country, including women and children, seniors and those who have served in the U.S. Armed Forces, in addition to a deep dive into health disparities across the country.
