The Gini Index measures how evenly income is distributed across households in a community, using estimates from the U.S. Census Bureau’s American Community Survey. Values range from 0 to 1, with lower scores indicating a more equal distribution of income and higher scores indicating greater inequality. Because income inequality influences economic mobility, health outcomes, and neighborhood opportunity, this indicator helps communities understand the extent to which prosperity is broadly shared—or concentrated among a smaller share of households. Tracking changes in the Gini Index over time provides insight into the structural forces shaping local opportunity, including wage growth, housing costs, job access, and demographic change.

Why Does this Matter?

1. Higher income inequality is linked to worse health and shorter lives

• Studies across U.S. states and high-income countries find that places with higher income inequality tend to have higher rates of poor self-rated health, mental illness, and premature mortality—even after accounting for average income levels.¹

2. Inequality constrains economic mobility and opportunity

• Research shows that children growing up in areas with higher income inequality and segregation have lower chances of moving up the income ladder as adults, especially in communities with concentrated poverty. Tracking the Gini Index helps communities understand how local conditions may be shaping long-run opportunity for today’s kids.²
  

3. High inequality can slow inclusive economic growth and weaken social cohesion

• Empirical work suggests that significant income gaps can dampen sustained growth, increase social conflict, and reduce trust in institutions. In contrast, more equitable income distributions are associated with more durable growth paths. Monitoring income inequality helps cities gauge whether growth is broadly shared or leaving many residents behind.³

1. Pickett, K. E., & Wilkinson, R. G. (2015). Income inequality and health: A causal review. Social Science & Medicine, 128, 316–326.
2. Chetty, R., Hendren, N., Kline, P., & Saez, E. (2014). Where is the land of opportunity? The geography of intergenerational mobility in the United States. Quarterly Journal of Economics, 129(4), 1553–1623.
3. Berg, A. G., & Ostry, J. D. (2011). Inequality and unsustainable growth: Two sides of the same coin? IMF Staff Discussion Note, 11(8), 1–29.