According to the Carsey Institute at UNH, the gap between rich and poor from 1989 to 2004 grew faster in New England than anywhere else in the country.
This is due to what the Institute’s researchers call the “hollowing out” of the middle class, a direct result of the offshoring of manufacturing jobs.
Over the 15 year study period, income inequality increased in all parts of the US, especially in “metropolitan” areas like Nashua, New Bedford, Stamford-Norwalk, Bridgeport, Waterbury and Danbury.
Massachusetts, Vermont and Connecticut had among the highest increases in income disparity in the country.
In case you’re wondering where you stand, in 2004, the average household income for the top 20% in New England was almost $185,000; for the top 5%, $337,000.
In 2004, 47.2% of the total income in New England was earned by the top 20%.
Still, New England is relatively affluent compared to the rest of the US. For example, in 2004, the median household income in Connecticut ($60,528) and Massachusetts ($55,580) ranked #2 and #5, respectively.