Income inequality has long been a pressing concern in the United States, and a new study by the Pew Research Center has shed light on the stark disparities that exist within the Asian American community. The analysis, which examined U.S. Census Bureau data, revealed that Chinese Americans experience the highest level of income inequality among all Asian origin groups in the country.
In 2022, Chinese American households at the 90th percentile of the income distribution earned an astonishing 19.2 times more than those at the 10th percentile. This gap, known as the "90/10 ratio," was the largest among all Asian American origin groups studied. Other groups with high levels of income inequality included Sri Lankan, Korean, and Pakistani Americans, with 90/10 ratios exceeding 13.
The study also found that income inequality has increased among most of the largest Asian origin groups since 1980. Chinese Americans experienced the most dramatic rise, with their 90/10 income ratio surging from 8.3 in 1980 to 19.2 in 2022. Korean, Japanese, Filipino, and Indian households also saw increases in income inequality over the same period. Interestingly, Vietnamese Americans were the only group to buck this trend, with their income inequality ratio declining by over 17 points since 1980.
When examining the income distribution across Asian American origin groups, the study revealed that Chinese Americans occupy both ends of the spectrum. At the 10th percentile, Chinese Americans were among the poorest Asian origin groups in 2022, with annual earnings of just $10,500. However, at the median (50th percentile) and 90th percentile, Chinese American households were among the highest earners, with incomes of $65,800 and $200,000, respectively.
The Pew Research Center's analysis also highlighted key demographic differences between the lowest and highest earners across the six largest Asian American origin groups. Immigrants were more likely to be found in the bottom 10% of earners than in the top 10%, with the exception of Filipino and Japanese Americans. Additionally, immigrants in the highest-earning households were more likely to have lived in the U.S. for more than a decade compared to those in the lowest-earning households.
Education played a significant role in the income divide, with the top 10% of Asian Americans by earnings far more likely to hold a bachelor's degree or higher compared to those in the bottom 10%. This trend was consistent across all six major Asian American origin groups.
The findings of this study underscore the complex and varied experiences of Asian Americans in the United States. While some groups, like Chinese Americans, have achieved significant economic success, they also face substantial income inequality within their own communities. As policymakers and advocates work to address the broader issue of income inequality in the country, it is crucial to recognize and address the unique challenges faced by specific ethnic groups.
The Pew Research Center's analysis serves as a reminder that the Asian American experience is not monolithic, and that efforts to promote economic equity must take into account the diverse needs and circumstances of different origin groups. By shedding light on these disparities, the study aims to inform public discourse and policy decisions that can help create a more inclusive and equitable society for all Americans, regardless of their ethnic background.
