Where wage inequality is increasing and decreasing
Posted
Toby Nelson for SmartAsset
Where wage inequality is increasing and decreasing
Wage equality helps define how workers share in economic growth. When top earners pull far ahead of median workers, rising high-end pay concentrates gains among a relatively small group. According to the Economic Policy Institute, earnings inequality has “redistributed wages away from most workers” and stifled “broader-based wage growth.” However, wider wage gaps may also reflect stronger rewards for specialized skills and experience, factors that can help drive productivity and economic expansion.
SmartAsset analyzed 90th-percentile wage thresholds — the wage level at which workers enter the top 10% of earners — in each of the 50 states over the preceding two years. Based on U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) data for May 2024 and May 2025, the study calculated how much that threshold exceeded the median wage, expressed as a percentage, and measured the year-over-year change in the disparity.
Key Findings
California and New York have the highest rates of wage inequality. The two states’ high concentrations of executive roles, finance jobs, and large technology sectors may explain their outsized wage inequality. In New York, the top 10% of workers earn at least 164% more than the median worker; in California, that figure is 173%.
Pennsylvania and North Carolina had the largest year-over-year increases in wage inequality. In both states, the wage threshold for entering the top 10% rose 11 percentage points further above the median wage, as top-end wages increased faster than wages in the middle.
In half of the states, wage inequality narrowed. Twenty-five states saw the gap between the threshold for entering the top 10% and the median wage decrease, led by Oregon with an 11-percentage-point decline.
North Dakota has the narrowest wage disparity. The Roughrider State is the only state where the median wage is at least half the wage threshold for entering the top 10%.
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State-by-State Wage Disparity
Alabama
2025 90th-percentile wage threshold: $101,250
2025 median wage: $45,670
2025 wage disparity: 122%
2024 90th-percentile wage threshold: $98,810
2024 median wage: $43,830
2024 wage disparity: 125%
Alaska
2025 90th-percentile wage threshold: $128,720
2025 median wage: $61,000
2025 wage disparity: 111%
2024 90th-percentile wage threshold: $126,680
2024 median wage: $59,400
2024 wage disparity: 113%
Arizona
2025 90th-percentile wage threshold: $120,180
2025 median wage: $50,060
2025 wage disparity: 140%
2024 90th-percentile wage threshold: $113,320
2024 median wage: $48,810
2024 wage disparity: 132%
Arkansas
2025 90th-percentile wage threshold: $94,740
2025 median wage: $43,630
2025 wage disparity: 117%
2024 90th-percentile wage threshold: $89,460
2024 median wage: $41,020
2024 wage disparity: 118%
California
2025 90th-percentile wage threshold: $159,080
2025 median wage: $58,240
2025 wage disparity: 173%
2024 90th-percentile wage threshold: $157,210
2024 median wage: $56,940
2024 wage disparity: 176%
Colorado
2025 90th-percentile wage threshold: $136,330
2025 median wage: $59,800
2025 wage disparity: 128%
2024 90th-percentile wage threshold: $134,050
2024 median wage: $58,210
2024 wage disparity: 130%
Connecticut
2025 90th-percentile wage threshold: $135,790
2025 median wage: $59,690
2025 wage disparity: 127%
2024 90th-percentile wage threshold: $133,860
2024 median wage: $58,400
2024 wage disparity: 129%
Delaware
2025 90th-percentile wage threshold: $127,690
2025 median wage: $52,190
2025 wage disparity: 145%
2024 90th-percentile wage threshold: $124,260
2024 median wage: $51,030
2024 wage disparity: 144%
Florida
2025 90th-percentile wage threshold: $114,550
2025 median wage: $47,880
2025 wage disparity: 139%
2024 90th-percentile wage threshold: $109,730
2024 median wage: $46,860
2024 wage disparity: 134%
Georgia
2025 90th-percentile wage threshold: $122,470
2025 median wage: $48,170
2025 wage disparity: 154%
2024 90th-percentile wage threshold: $117,380
2024 median wage: $47,020
2024 wage disparity: 150%
Hawaii
2025 90th-percentile wage threshold: $123,660
2025 median wage: $56,320
2025 wage disparity: 120%
2024 90th-percentile wage threshold: $119,830
2024 median wage: $53,260
2024 wage disparity: 125%
Idaho
2025 90th-percentile wage threshold: $103,240
2025 median wage: $47,970
2025 wage disparity: 115%
2024 90th-percentile wage threshold: $100,220
2024 median wage: $46,470
2024 wage disparity: 116%
Illinois
2025 90th-percentile wage threshold: $127,770
2025 median wage: $51,960
2025 wage disparity: 146%
2024 90th-percentile wage threshold: $124,560
2024 median wage: $50,000
2024 wage disparity: 149%
Indiana
2025 90th-percentile wage threshold: $101,160
2025 median wage: $47,860
2025 wage disparity: 111%
2024 90th-percentile wage threshold: $98,520
2024 median wage: $46,930
2024 wage disparity: 110%
Iowa
2025 90th-percentile wage threshold: $99,630
2025 median wage: $48,540
2025 wage disparity: 105%
2024 90th-percentile wage threshold: $97,870
2024 median wage: $47,670
2024 wage disparity: 105%
Kansas
2025 90th-percentile wage threshold: $103,250
2025 median wage: $48,010
2025 wage disparity: 115%
2024 90th-percentile wage threshold: $100,270
2024 median wage: $46,850
2024 wage disparity: 114%
Kentucky
2025 90th-percentile wage threshold: $98,380
2025 median wage: $46,920
2025 wage disparity: 110%
2024 90th-percentile wage threshold: $94,610
2024 median wage: $45,740
2024 wage disparity: 107%
Louisiana
2025 90th-percentile wage threshold: $100,110
2025 median wage: $45,520
2025 wage disparity: 120%
2024 90th-percentile wage threshold: $98,180
2024 median wage: $43,770
2024 wage disparity: 124%
Maine
2025 90th-percentile wage threshold: $105,510
2025 median wage: $51,430
2025 wage disparity: 105%
2024 90th-percentile wage threshold: $102,480
2024 median wage: $49,440
2024 wage disparity: 107%
Maryland
2025 90th-percentile wage threshold: $145,410
2025 median wage: $59,510
2025 wage disparity: 144%
2024 90th-percentile wage threshold: $142,600
2024 median wage: $58,050
2024 wage disparity: 146%
Massachusetts
2025 90th-percentile wage threshold: $163,010
2025 median wage: $63,590
2025 wage disparity: 156%
2024 90th-percentile wage threshold: $157,220
2024 median wage: $62,270
2024 wage disparity: 152%
Michigan
2025 90th-percentile wage threshold: $110,650
2025 median wage: $49,270
2025 wage disparity: 125%
2024 90th-percentile wage threshold: $106,450
2024 median wage: $48,300
2024 wage disparity: 120%
Minnesota
2025 90th-percentile wage threshold: $125,730
2025 median wage: $56,920
2025 wage disparity: 121%
2024 90th-percentile wage threshold: $121,500
2024 median wage: $53,810
2024 wage disparity: 126%
Mississippi
2025 90th-percentile wage threshold: $84,500
2025 median wage: $40,120
2025 wage disparity: 111%
2024 90th-percentile wage threshold: $83,400
2024 median wage: $39,070
2024 wage disparity: 113%
Missouri
2025 90th-percentile wage threshold: $104,320
2025 median wage: $47,800
2025 wage disparity: 118%
2024 90th-percentile wage threshold: $101,290
2024 median wage: $46,390
2024 wage disparity: 118%
Montana
2025 90th-percentile wage threshold: $100,610
2025 median wage: $48,740
2025 wage disparity: 106%
2024 90th-percentile wage threshold: $97,510
2024 median wage: $47,360
2024 wage disparity: 106%
Nebraska
2025 90th-percentile wage threshold: $103,110
2025 median wage: $48,980
2025 wage disparity: 111%
2024 90th-percentile wage threshold: $100,840
2024 median wage: $47,990
2024 wage disparity: 110%
Nevada
2025 90th-percentile wage threshold: $106,080
2025 median wage: $47,660
2025 wage disparity: 123%
2024 90th-percentile wage threshold: $103,620
2024 median wage: $46,440
2024 wage disparity: 123%
New Hampshire
2025 90th-percentile wage threshold: $126,930
2025 median wage: $55,880
2025 wage disparity: 127%
2024 90th-percentile wage threshold: $121,360
2024 median wage: $52,610
2024 wage disparity: 131%
New Jersey
2025 90th-percentile wage threshold: $142,750
2025 median wage: $58,570
2025 wage disparity: 144%
2024 90th-percentile wage threshold: $137,680
2024 median wage: $57,230
2024 wage disparity: 141%
New Mexico
2025 90th-percentile wage threshold: $110,070
2025 median wage: $47,210
2025 wage disparity: 133%
2024 90th-percentile wage threshold: $106,690
2024 median wage: $45,870
2024 wage disparity: 133%
New York
2025 90th-percentile wage threshold: $157,500
2025 median wage: $59,670
2025 wage disparity: 164%
2024 90th-percentile wage threshold: $150,690
2024 median wage: $58,560
2024 wage disparity: 157%
North Carolina
2025 90th-percentile wage threshold: $119,640
2025 median wage: $47,970
2025 wage disparity: 149%
2024 90th-percentile wage threshold: $112,040
2024 median wage: $46,950
2024 wage disparity: 139%
North Dakota
2025 90th-percentile wage threshold: $103,160
2025 median wage: $52,480
2025 wage disparity: 97%
2024 90th-percentile wage threshold: $99,820
2024 median wage: $50,320
2024 wage disparity: 98%
Ohio
2025 90th-percentile wage threshold: $106,800
2025 median wage: $49,380
2025 wage disparity: 116%
2024 90th-percentile wage threshold: $103,800
2024 median wage: $48,060
2024 wage disparity: 116%
Oklahoma
2025 90th-percentile wage threshold: $100,690
2025 median wage: $45,600
2025 wage disparity: 121%
2024 90th-percentile wage threshold: $97,680
2024 median wage: $43,950
2024 wage disparity: 122%
Oregon
2025 90th-percentile wage threshold: $129,520
2025 median wage: $57,000
2025 wage disparity: 127%
2024 90th-percentile wage threshold: $127,140
2024 median wage: $53,390
2024 wage disparity: 138%
Pennsylvania
2025 90th-percentile wage threshold: $117,860
2025 median wage: $49,690
2025 wage disparity: 137%
2024 90th-percentile wage threshold: $109,710
2024 median wage: $48,550
2024 wage disparity: 126%
Rhode Island
2025 90th-percentile wage threshold: $128,120
2025 median wage: $56,780
2025 wage disparity: 126%
2024 90th-percentile wage threshold: $123,300
2024 median wage: $54,040
2024 wage disparity: 128%
South Carolina
2025 90th-percentile wage threshold: $103,010
2025 median wage: $46,490
2025 wage disparity: 122%
2024 90th-percentile wage threshold: $99,990
2024 median wage: $44,760
2024 wage disparity: 123%
South Dakota
2025 90th-percentile wage threshold: $94,900
2025 median wage: $47,080
2025 wage disparity: 102%
2024 90th-percentile wage threshold: $89,190
2024 median wage: $45,620
2024 wage disparity: 96%
Tennessee
2025 90th-percentile wage threshold: $103,130
2025 median wage: $47,380
2025 wage disparity: 118%
2024 90th-percentile wage threshold: $100,860
2024 median wage: $46,120
2024 wage disparity: 119%
Texas
2025 90th-percentile wage threshold: $125,220
2025 median wage: $48,620
2025 wage disparity: 158%
2024 90th-percentile wage threshold: $121,180
2024 median wage: $47,500
2024 wage disparity: 155%
Utah
2025 90th-percentile wage threshold: $119,990
2025 median wage: $50,110
2025 wage disparity: 139%
2024 90th-percentile wage threshold: $111,640
2024 median wage: $48,600
2024 wage disparity: 130%
Vermont
2025 90th-percentile wage threshold: $111,480
2025 median wage: $56,390
2025 wage disparity: 98%
2024 90th-percentile wage threshold: $107,920
2024 median wage: $52,410
2024 wage disparity: 106%
Virginia
2025 90th-percentile wage threshold: $139,010
2025 median wage: $55,690
2025 wage disparity: 150%
2024 90th-percentile wage threshold: $135,740
2024 median wage: $53,020
2024 wage disparity: 156%
Washington
2025 90th-percentile wage threshold: $153,630
2025 median wage: $62,990
2025 wage disparity: 144%
2024 90th-percentile wage threshold: $145,620
2024 median wage: $61,590
2024 wage disparity: 136%
West Virginia
2025 90th-percentile wage threshold: $98,220
2025 median wage: $45,300
2025 wage disparity: 117%
2024 90th-percentile wage threshold: $96,240
2024 median wage: $43,320
2024 wage disparity: 122%
Wisconsin
2025 90th-percentile wage threshold: $104,990
2025 median wage: $50,270
2025 wage disparity: 109%
2024 90th-percentile wage threshold: $101,970
2024 median wage: $48,930
2024 wage disparity: 108%
Wyoming
2025 90th-percentile wage threshold: $104,190
2025 median wage: $50,270
2025 wage disparity: 107%
2024 90th-percentile wage threshold: $102,210
2024 median wage: $49,160
2024 wage disparity: 108%
Methodology
U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) data for May 2024 and May 2025, the two most recent years for which data are available, were analyzed using statewide annual median wage estimates and 90th-percentile wage thresholds for all occupations. For many occupations, OEWS annual wage estimates are calculated by multiplying hourly wages by 2,080 hours and therefore may not reflect workers’ actual annual earnings. Wage disparity was calculated as the percentage by which the 90th-percentile threshold exceeded the median wage, and states were ranked by the percentage-point change in that disparity from 2024 to 2025. OEWS figures are survey-based estimates and may be subject to sampling and nonsampling error. OEWS excludes self-employed workers and does not cover certain agricultural workers, private household workers or military-specific occupations. Year-over-year shifts, particularly smaller movements, should be interpreted as estimates rather than exact changes. Accordingly, rankings based on small one- or two-percentage-point changes should be interpreted cautiously. This measure captures disparity between the middle and upper end of the wage distribution; it is not a comprehensive measure of inequality across all workers. Source data providers are not affiliated with, and do not endorse or sponsor, this study or its findings.
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