Across the nation, income inequality -- the gap
between high-income and low-income households -- is substantial and has
widened significantly over the past two decades. While this
phenomenon is national in scope, an analysis of data from the 2000
census shows that income inequality is particularly serious in the
District of Columbia.
The average income of the top fifth of the
District's households --$186,830 in 1999 -- was 31 times higher than the
average income of the bottom fifth of households --$6,126.
The gap between high-income and low-income households in the
District is as wide or wider than in any of the central cities of the
nation's 40 largest metro areas. Two other cities -- Atlanta and
Miami -- have similar income gaps, but in most cities the gap is much
smaller than in DC. In the typical large city, the income of the
top fifth of households is 18 times the income of the bottom fifth.
Income inequality widened in the District in the 1990s, as the
benefits of its economic expansion went almost exclusively to its
highest-income residents. The average income for the top fifth of
DC households grew 36 percent during this period, adjusting for
inflation, while the average income of the bottom fifth of households
rose just three percent.
The stagnant income for the District's
lowest-income residents reflects a variety of factors, including weak
wage growth at the bottom of the earnings scale and a significant
reduction in the value of public assistance benefits. [more ]
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