2. Goal: Create a Small-Scale Measure of
Income Homogeneity
Measure concentration on the Census tract level relative
to the tract itself (not compared to a state or area
concentration).
Take into account regional differences in average
income.
Income and homogeneity categories are based on a set
of fixed levels – in constant dollars – so that change
over time can be estimated.
3. Estimating the Level of Homogeneity
Census Tract $25,000 – $50,000 – $75,000 - > $150,000
< $25,000 50,000 75,000 150,000
Actual 1762 187 56 9 10
“Ideal” 405 405 405 405 405
Cramer V = .84
Actual = # of households in each of the income categories as
reported by Claritas.
“Ideal” = The # of households in each income category if
the households were evenly distributed
Cramer V =
X2 = Chi-square = (1762-405)2/405 + (187-405)2/405 + (56-405)2/56 + (9-405)2/405 + (10-405)2/405
N = Total number of households = 2025
k = Total number of households = 2025
7. Establishing the Income Levels
Median Family Low Income Median Family Middle Income Median Family High Income
Region Range (represents less than Range (represents between Range (represents more than
35% of PUMS division) 35% and 60% of PUMS division 60% of PUMS division)
New England states
less than $41,180 between $41,180 and $74,429 above $74,429
(CT, MA, ME, RI, VT)
Middle Atlantic states
less than $37,113 between $37,113 and $68,125 above $68,125
(NJ, NY, PA)
East North Central states
less than $34,571 between $34,571 and $61,007 above $61,007
(IL, IN, MI, OH, WI)
West North Central states
(IA, KS, MN, MO, ND, NE, less than $34,164 between $34,164 and $59,685 above $59,685
SD)
South Atlantic states (DC,
DE, FL, GA, MD, NC, SC, less than $35,038 between $35,038 and $61,312 above $61,312
VA, WV)
East South Central states
less than $27,435 between $27,435 and $50,839 above $50,839
(AL, KY, MS, TN)
West South Central states
less than $30,707 between $430,707 and $56,127 above $56,127
(AR, LA, OK, TX)
Mountain states
(AZ, CO, ID, MT, NM, NV, less than $36,604 between $36,604 and $67,735 above $67,735
UT, WY)
Pacific states
less than $40,670 between $40,670 and $72,212 above $72,212
(CA, OR, WA)
8. Final Income Inequality Framework
Cramer V Cramer V Cramer V
<=.2 .2-.4 >=.4
Tract MHHI
<35% PUMS area
Tract MHHI
35-60% PUMS area
Tract MHHI
>60% PUMS area
9. Final Income Inequality Framework
Income Concentration
Low Medium High
Low Income, Low Income, Low Income,
Low
Low Concentration Medium Concentration High Concentration
Income Classification
Middle Income, Middle Income, Middle Income,
Middle
Low Concentration Medium Concentration High Concentration
High Income, High Income, High Income,
High
Low Concentration Medium Concentration High Concentration
10. % of all
% of all % of all Hispanic % of all % of all
Tracts HH HH Black HH White HH
Low Income, Low Concentration 0 0 0 0 0
OR $25,000 – $50,000 – $75,000 - > $150,000
MHHI=$39,904 < $25,000 50,000 75,000 150,000
Actual 557 368 270 285 169
“Ideal” 329 329 329 329 329
Cramer V = .20
11. % of all
% of all % of all Hispanic % of all % of all
Tracts HH HH Black HH White HH
Low Income, Mod Concentration 11.5 10.9 18.2 16.5 9.4
MO $25,000 – $50,000 – $75,000 - > $150,000
MHHI=$31,198 < $25,000 50,000 75,000 150,000
Actual 608 524 204 108 48
“Ideal” 298 298 298 298 298
Cramer V = .38
12. % of all
% of all % of all Hispanic % of all % of all
Tracts HH HH Black HH White HH
Low Income, High Concentration 10.3 8.3 16.9 23.5 5.4
AL $25,000 – $50,000 – $75,000 - > $150,000
MHHI=$19,746 < $25,000 50,000 75,000 150,000
Actual 899 393 175 103 24
“Ideal” 319 319 319 319 319
Cramer V = .49
13. % of all
% of all % of all Hispanic % of all % of all
Tracts HH HH Black HH White HH
Middle Income, Low Concentration 6.3 7.3 6.1 4.1 7.6
NY $25,000 – $50,000 – $75,000 - > $150,000
MHHI=$63,720 < $25,000 50,000 75,000 150,000
Actual 201 284 210 360 150
“Ideal” 241 241 241 241 241
Cramer V = .15
14. % of all
% of all % of all Hispanic % of all % of all
Tracts HH HH Black HH White HH
Middle Income, Mod Concentration 45.2 47.5 44.4 42.5 49.1
IA $25,000 – $50,000 – $75,000 - > $150,000
MHHI=$39,375 < $25,000 50,000 75,000 150,000
Actual 254 272 196 106 17
“Ideal” 169 169 169 169 169
Cramer V = .28
15. % of all
% of all % of all Hispanic % of all % of all
Tracts HH HH Black HH White HH
Middle Income, High Concentration .4 .3 .4 .7 .3
NV $25,000 – $50,000 – $75,000 - > $150,000
MHHI=$52,988 < $25,000 50,000 75,000 150,000
Actual 0 4,479 6,007 0 0
“Ideal” 2,097 2,097 2,097 2,097 2,097
Cramer V = .62
16. % of all
% of all % of all Hispanic % of all % of all
Tracts HH HH Black HH White HH
High Income, Low Concentration 2.9 3.5 1.9 1.6 4.0
FL $25,000 – $50,000 – $75,000 - > $150,000
MHHI=$65,322 < $25,000 50,000 75,000 150,000
Actual 422 449 416 550 426
“Ideal” 453 453 453 453 453
Cramer V = .06
17. % of all
% of all % of all Hispanic % of all % of all
Tracts HH HH Black HH White HH
High Income, Mod Concentration 16.5 19.6 10.8 9.9 21.5
TX $25,000 – $50,000 – $75,000 - > $150,000
MHHI=$70,147 < $25,000 50,000 75,000 150,000
Actual 139 165 246 411 51
“Ideal” 202 202 202 202 202
Cramer V = .30
18. % of all
% of all % of all Hispanic % of all % of all
Tracts HH HH Black HH White HH
High Income, High Concentration 2.2 2.5 1.3 1.2 2.7
NY $25,000 – $50,000 – $75,000 - > $150,000
MHHI=$292,442 < $25,000 50,000 75,000 150,000
Actual 52 40 18 123 710
“Ideal” 189 189 189 189 189
Cramer V = .70