The Distribution of Income in California

Income inequality-a measure of how equally the income pie is divided among all members of society-has increased dramatically in the United States over the past three decades. To determine whether California trends have mirrored those of the nation, the authors analyze annual changes in income distribution from the late 1960s through 1994. Using five measures of inequality, 26 definitions of income, and two data series, they compare income levels and trends in California with those of the nation. Their analyses provide the most comprehensive picture ever assembled on income inequality in California.