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The evolution of income inequality

Do you know that FRED includes data on income inequality? The data come from the income, poverty, and health insurance coverage release from the U.S. Census Bureau as part of its yearly Current Population Survey. The data cover both households and families, with geographic and racial subcategories. Do you also know the distinction between “households” and “families”? A household includes all people living in a housing unit; a family includes only those related by marriage, blood, or adoption.

The Gini ratios shown in this graph measure income inequality. Higher values indicate more inequality, and the graph clearly shows an upward trend for both households and families.

How this graph was created: Go to the release noted above, choose “gini” in the tags, choose the series you want to graph, and click “Add to graph.”

Suggested by Christian Zimmermann

View on FRED, series used in this post: GINIALLRF, GINIALLRH

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