Today’s chart uses data from the Brookings Institute, and it focuses on the geographical wage gap, or the difference in per capita income that exists between various U.S. regions.
Interestingly, it’s a gap that has historically narrowed over time.
Just after the Great Depression, income per capita in the Mideast was 50% higher than the average American, and roughly three times higher than in the Southeast. Over the next 50 years, this gap would continue to narrow until reaching its smallest differential by the mid-1980s.
In the last couple of decades, however, the geographical wage gap has shown signs of a potential reversal: per capita incomes in New England, Mideast, and Far West have been increasing relative to the average American wage, while other regions are remaining more stagnant.