U.S. wage inequality trends vary by state

A study by SmartAsset analyzing U.S. Bureau of Labor Statistics data reveals varying trends in wage inequality across the 50 states. The analysis measured the gap between the 90th-percentile wage threshold and the median wage between May 2024 and May 2025.

California and New York exhibit the highest levels of wage inequality, with top earners making 173% and 164% more than the median worker, respectively. This disparity is attributed to high concentrations of technology, finance, and executive roles. Pennsylvania and North Carolina experienced the most significant year-over-year increases in inequality, with the gap widening by 11 percentage points in both states.

Conversely, wage inequality narrowed in 25 states, led by Oregon, which saw an 11-percentage-point decline. North Dakota maintains the narrowest wage disparity in the country.