TEXAS – A new study shows the gap between Texas’ highest-paid workers and the state’s median earners continues to grow.
According to a new analysis by SmartAsset using recently released data from the U.S. Bureau of Labor Statistics, Texas ranks No. 14 in the nation for the largest year-over-year increase in wage inequality.
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The study found that pay disparity between the state’s top earners and middle earners increased by 2 percentage points over the past year.
To break into the top 10% of earners in Texas, workers now need to make at least $125,220 annually. By comparison, the statewide median annual wage is $48,620.
That means the minimum income needed to join Texas’ highest-paid workers is now about 158% higher than the state’s median wage, according to the study.
Researchers analyzed Bureau of Labor Statistics wage data to measure how income inequality has changed from one year to the next in each state.
While Texas ranked 14th for the increase in wage disparity, other states saw even larger gaps.
According to the report, California and New York have the greatest wage inequality in the nation, while North Dakota has the smallest gap between top earners and median wage workers.
The findings come as many Americans continue to grapple with rising living costs, even as wages have increased in some industries. The study does not examine the reasons behind the widening wage gap but instead measures how earnings at the top compare with median wages in each state.