Financial Security
80/20 Income Ratio

Maintaining


Income Inequality

What does this measure?

The 80/20 ratio describes the disparity in the size of the income of a household at the 80th percentile relative to that of the income of a household at the 20th percentile. A higher ratio indicates greater income inequality.

Why is this important?

High levels of income inequality can make it more difficult for lower income children and families to become part of the middle class (upward mobility). The greater the disparity in income, the less likely it is that positive effects of economic growth will be distributed among all households.

How is our region doing?

In 2018-22, MetroWest had an 80/20 ratio of 5, an increase of 4% since 2008-12. The 80th percentile salary was $652,942 and the 20th percentile salary was $130,509. The MetroWest regional ratio was on par in 2018-22 with the national ratio of 4.9. It was lower than the Massachusetts ratio of 5.5.

The ratio was the highest in Maynard, at 6.5, with an 80th percentile salary of $239,000 and 20th percentile salary of $37,049. Income inequality was a bit higher in Worcester, with a ratio of 5.1 , than in Middlesex and Norfolk both at 5.

Notes about the data

The ratio was calculated by dividing the median household income at the 80th percentile by the median household income at the 20th percentile. Household income was sourced from U.S. Census data.

Income Inequality
2008-122013-172018-22
United States4.94.94.9
Massachusetts5.35.55.5
Region4.85.05.0
Middlesex County4.85.15.0
Norfolk County4.84.95.0
Worcester County4.85.15.1
Acton town, Middlesex County4.74.14.0***
Ashland town, Middlesex County4.64.13.6
Bedford town, Middlesex County4.04.24.1***
Bellingham town, Norfolk County3.34.03.9
Boxborough town, Middlesex County4.65.24.2***
Carlisle town, Middlesex County3.2***3.0***2.2***
Concord town, Middlesex County4.44.4***3.4***
Dedham town, Norfolk County4.15.04.7
Dover town, Norfolk County3.6***2.6***2.0***
Framingham city, Middlesex County5.15.65.0
Franklin town, Norfolk County4.04.14.0
Groton town, Middlesex County4.14.54.3***
Harvard town, Worcester County3.24.53.1***
Holliston town, Middlesex County4.43.94.1***
Hopkinton town, Middlesex County3.73.43.0***
Hudson town, Middlesex County4.34.34.4
Lexington town, Middlesex County4.6***4.1***2.8***
Lincoln town, Middlesex County4.64.5***5.6***
Littleton town, Middlesex County5.24.84.2***
Marlborough city, Middlesex County4.74.14.5
Maynard town, Middlesex County4.95.36.5*
Medfield town, Norfolk County3.93.9***3.6***
Medway town, Norfolk County3.53.83.5***
Milford town, Worcester County4.44.04.1
Millis town, Norfolk County3.23.83.8
Natick town, Middlesex County4.54.84.6***
Needham town, Norfolk County4.54.1***3.3***
Sherborn town, Middlesex County3.5***3.8***2.5***
Southborough town, Worcester County3.94.1***3.1***
Stow town, Middlesex County3.73.73.6***
Sudbury town, Middlesex County3.0***3.2***2.3***
Walpole town, Norfolk County3.94.44.0***
Waltham city, Middlesex County4.94.44.8
Wayland town, Middlesex County4.53.5***3.0***
Wellesley town, Norfolk County4.1***3.5***2.9***
Westborough town, Worcester County3.64.04.4***
Westford town, Middlesex County3.03.43.3***
Weston town, Middlesex County3.8***4.4***4.1***
Westwood town, Norfolk County5.84.5***3.6***

Source: U.S. Census Bureau
Notes: Multiyear results are from rolling American Community Survey. * Margin of error between 20% & 35% of estimate; ** margin of error between 35% & 50%; *** margin of error greater than 50%.








INDICATORS REGIONAL TREND
Early Prenatal Care by Mother's Race/Ethnicity Not Applicable
Children Living in Poverty Maintaining
Children Living in Poverty, by Race/Ethnicity Not Applicable
Single-Parent Families Increasing
Single-Parent Families by Race/Ethnicity Not Applicable
Disengaged Youth Decreasing
Reports of Domestic Violence Increasing
Arts, Entertainment and Recreation Establishments Increasing
Households Without Vehicles Maintaining
Means of Transportation to Work Not Applicable
Households With Internet Access Increasing
Voter Participation Rate Increasing
Average Charitable Contribution Maintaining
People Without Health Insurance Decreasing
Drug Poisoning Mortality Rate Increasing
Crimes Against People Decreasing
Incarceration Rates, by Race/Ethnicity Not Applicable
Change in Total Population Increasing
Change in Population by Race/Ethnicity Not Applicable
Foreign-Born Population Increasing
Language Diversity Increasing
Population by Age Not Applicable
Change in Population by Age/Gender Not Applicable
Seniors Living Alone Decreasing
People with Disabilities Maintaining
Change in Total Jobs by Sector Not Applicable
Business Ownership by Race/Ethnicity Not Applicable
Unemployment Rate Maintaining
Share of Workers who are Professionals, by Race/Ethnicity Not Applicable
Unemployment Rate by Race/Ethnicity Not Applicable
Average Salary by Sector Not Applicable
High-Tech Jobs Decreasing
Female to Male Earnings Ratio Maintaining
Prekindergarten Participation Not Applicable
Student Performance on Grade 3 English, by Student Group Not Applicable
School Spending Per Student Maintaining
Student Performance on Grade 8 Math by Student Group Not Applicable
Chronically Absent Students Increasing
High School Cohort Graduation Rate by Student Group Not Applicable
Education Levels of Adults Not Applicable
College Admission Rate, by Race/Ethnicity Not Applicable
Education Levels of Adults, by Race/Ethnicity Not Applicable
People Living in Poverty Maintaining
People Living in Poverty, by Education Level Not Applicable
People Living in Poverty, by Race/Ethnicity Not Applicable
Households Receiving Temporary Assistance Maintaining
Participation in Food Assistance by Race/Ethnicity Not Applicable
Median Household Income Maintaining
Median Household Income, by Race/Ethnicity Not Applicable
Living Wage Not Applicable
80/20 Income Ratio Maintaining
Access to Financial Services, by Race/Ethnicity Not Applicable
Homeownership Rates Maintaining
Homeownership Rates, by Race/Ethnicity Not Applicable
Cost of Homeownership Increasing
Cost of Homeownership, by Race/Ethnicity Not Applicable
Cost of Rent Not Applicable
Cost of Rent, by Race/Ethnicity Not Applicable
Homelessness Increasing
Early Prenatal Care by Mother's Race/Ethnicity Not Applicable
Children Living in Poverty, by Race/Ethnicity Not Applicable
Single-Parent Families by Race/Ethnicity Not Applicable
Incarceration Rates, by Race/Ethnicity Not Applicable
Change in Population by Race/Ethnicity Not Applicable
Business Ownership by Race/Ethnicity Not Applicable
Share of Workers who are Professionals, by Race/Ethnicity Not Applicable
Unemployment Rate by Race/Ethnicity Not Applicable
Student Performance on Grade 3 English, by Student Group Not Applicable
Student Performance on Grade 8 Math by Student Group Not Applicable
High School Cohort Graduation Rate by Student Group Not Applicable
College Admission Rate, by Race/Ethnicity Not Applicable
Education Levels of Adults, by Race/Ethnicity Not Applicable
People Living in Poverty, by Race/Ethnicity Not Applicable
Participation in Food Assistance by Race/Ethnicity Not Applicable
Median Household Income, by Race/Ethnicity Not Applicable
Access to Financial Services, by Race/Ethnicity Not Applicable
Homeownership Rates, by Race/Ethnicity Not Applicable
Cost of Homeownership, by Race/Ethnicity Not Applicable
Cost of Rent, by Race/Ethnicity Not Applicable


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