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January jobs report: Unemployment rate falls to 4%, wages rise more than forecast; Trump signs order imposing sanctions on International Criminal Court over investigations of Israel; Ten Commandments in public schools debate reaches South Dakota; Virginia ranks among worst states for wage theft; Mexican long-nosed bat makes appearance in Arizona.

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Attorney General Pam Bondi strikes a Trump tone at the Justice Department, federal workers get more time to consider buyouts, and an unclassified email request from the White House worries CIA vets.

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During Black History Month, a new book shares how a unique partnership built 5,000 schools for Black students, anti-hunger advocates say ag communities would benefit from an expanded SNAP program, and Americans have $90 billion in unpaid medical bills.

Study: Income Inequality Greater Than Before the Great Recession

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Friday, January 22, 2016   

NEW YORK - Income inequality in the United States is higher today than before the Great Recession - and it continues to rise, according to researchers at the Brookings Institution's Metropolitan Policy Program.

The Bridgeport, Conn., area topped the list, followed by the New York metropolitan region, in a study of places with large income gaps. But the eyebrow-raiser for researchers such as Natalie Holmes, who worked on the report, was that income inequality is rising in large part because the lowest-income earners are making less money.

"In the 100 largest metropolitan areas, 81 saw a statistically significant decrease in what the bottom 20 percent of households are earning," Holmes said. "So, I think that's something that is concerning, right? It's that people at the bottom are earning less than they were before the recession. That was pretty striking."

The report said income inequality has the effects of raising the prices of goods for poorer families. It can make housing less affordable for lower-income households and diminish the quality of education for students in these areas.

Holmes stressed that incomes vary based on each metropolitan area and city measured, so the impact of the income gaps will also vary by place. But in most cases, she said, the gaps don't bode well for residents at all income levels.

"Higher inequality might narrow the tax base from which municipalities can raise revenue to provide services," she said. "Combined with economic segregation, we worry that inequality might diminish the ability of schools to maintain mixed-income populations that we're pretty sure produce better outcomes for low-income students."

The study looked at income inequality in cities and metropolitan areas. It found that cities with higher income inequality generally are located in metro areas that also have higher income inequality. Of the 97 cities analyzed, 84 had higher levels of inequality than their wider metro areas.

More information about the study is online at brookings.edu.


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