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Ratio of household income at the 80th percentile to income at the 20th percentile (Income inequality)
Current Value
4.4
Definition
"The household income ratio at the 80th percentile to income at the 20th percentile.
Income inequality within U.S. communities can have broad health impacts, including increased mortality risk, poor health, and increased cardiovascular disease risks. Inequalities in a community can accentuate differences in social class and status and serve as a social stressor. Communities with greater income inequality can experience a loss of social connectedness and a decrease in trust, social support, and a sense of community for all residents. Income inequality in a society has a strong causal connection to health, independent of the income of individuals."
Source: Income Inequality | County Health Rankings & Roadmaps
Comparison
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Data Sources and Measure Methods
The 2024 Annual Data Release used data from 2018-2022 for this measure.
Data Source
"American Community Survey, 5-year estimates: The American Community Survey (ACS) is a nationwide survey designed to give communities a fresh look at how they are changing. It is critical in the Census Bureau's reengineered decennial census program. The ACS collects and produces population and housing information yearly instead of every ten years and publishes one-year and five-year estimates. The County Health Rankings use American Community Survey data to measure social and economic factors."
Measure Methods
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"Income Inequality is a ratio: Income Inequality is the ratio of household income at the 80th percentile to that at the 20th percentile, i.e., when the incomes of all households in a county are listed from highest to lowest, the 80th percentile is the level of income at which only 20% of households have higher incomes, and the 20th percentile is the level of income at which only 20% of households have lower incomes. A higher inequality ratio indicates a greater division between the top and bottom ends of the income spectrum."
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"Numerator: The numerator is a county's 80th percentile of median household income. Income, defined as “total income,” is the sum of the amounts reported separately for wage or salary income; net self-employment income; interest, dividends, or net rental or royalty income or income from estates and trusts; Social Security or Railroad Retirement income; Supplemental Security Income (SSI); public assistance or welfare payments; retirement, survivor, or disability pensions; and all other income. Receipts from the following sources are not included as income: capital gains, money received from the sale of property (unless the recipient was engaged in the business of selling such property); the value of income “in kind” from food stamps, public housing subsidies, medical care, employer contributions for individuals, etc.; withdrawal of bank deposits; money borrowed; tax refunds; exchange of money between relatives living in the same household; gifts and lump-sum inheritances, insurance payments, and other types of lump-sum receipts."
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"Denominator: The denominator is a county's 20th percentile of median household income."
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"Can This Measure Be Used to Track Progress?: This measure is not appropriate for measuring progress."
Source: Income Inequality | County Health Rankings & Roadmaps
References
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Pickett KE, Wilkinson RG. Income inequality and health: a causal review. Social Science & Medicine. 2015;128:316-326.
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