Exploring Income Diversity and Segregation in New Jersey

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Map of the Week: January 25, 2015 The Joseph C. Cornwall Center for Metropolitan Studies at Rutgers University-Newark is pleased to present Map of the Week a weekly blog series designed to explore some of the community and economic development and social equity issues present in the Newark, New Jersey region through the use of maps and infographics. The Cornwall Center uses research and demonstration to address key urban and metropolitan problems in Newark and the surrounding region. Exploring Income Diversity and Segregation in New Jersey January 25, 2016: Can New Jersey s Neighborhoods be Considered Mixed Income? In our most recent post, we concluded that New Jersey s counties are indeed very diverse in terms of household income. Here, we continue our exploration of income diversity in New Jersey by conducting a diversity analysis of New Jersey neighborhoods. This neighborhood-level analysis will help us to understand if, like our counties, our neighborhoods are very diverse (i.e., comprised of more equal shares of households from many of the groups on our income scale), or are more homogeneous (i.e., dominated by large shares of households from one particular or only a few groups on our income scale). Map 1: : Average Neighborhood Household Diversity Index of NJ Counties Just as with exploring racial and ethnic diversity, we have conducted this analysis by calculating every neighborhood s Household Income Diversity Index. In order to understand the diversity of the average neighborhood in each county, we then calculated the Average Neighborhood Household Income Diversity Index for all neighborhoods in each county in the US. This will not only allow us to compare New Jersey counties to each other, but also to all other US counties.

Map 1 shows every New Jersey county shaded by which quartile of US counties its Average Neighborhood Diversity Index Score falls into. The most immediately noticeable feature of this map is that it is overwhelmingly yellow and green. Unlike the map in our previous post, which showed the majority of New Jersey counties falling within the top quartile of Countywide Household Income Diversity, this map is showing the diametric contradiction, where the majority of New Jersey counties are falling within the bottom quartile of Average Neighborhood Household Income Diversity. In fact, the same number of New Jersey counties (12, or 57%) fall within the lowest quartile for Average Neighborhood Diversity as did in the highest quartile for Countywide Diversity. Chart 1, below, shows how far each New Jersey county falls below the mark of the US county with the highest Average Neighborhood Household Income Diversity Index Score, as well as the cut-off points for the top and bottom quartiles of Average Neighborhood Household Income Diversity for all US counties. Looking at the chart, it certainly seems that most New Jersey Counties are far below the highest US county quartile of Average Neighborhood Household Income Diversity. Chart 1: Average Neighborhood Household Diversity Index of New Jersey Counties The two tables immediately below are shown to provide a glimpse into how New Jersey and its counties dramatically compare with others in the US. Table 1 shows the top and bottom ten states in terms of the proportion of their counties ranked in the highest quartile of Average Neighborhood Household Income Diversity of all US counties. Six states, including New Jersey, do not have any counties that fall within the top quartile of US counties. Table 2 shows two New Jersey Counties alongside the ten highest-scoring US counties in terms of Average Neighborhood Household Income Diversity Index Scores. New Jersey s highest scoring county, Cape May County, has an Average Neighborhood Household Income Diversity Index Score of 85.85, good enough to tie for 1,287 th place out of all US counties. Essex County, the highest scoring county in all of the US in terms of its Countywide Household Income Diversity Index Score, is tied for 2,963 th place out of all 3,142 US counties.

Table 1: Top 10 & Bottom 10 US States by Percentage of Counties That are in the Top US County Quartile of Average Neighborhood Household Income Diversity STATE NUMBER OF COUNTIES NUMBER OF COUNTIES WHOSE AVG N HOOD DIVERSITY INDEX IS IN TOP 25% OF US COUNTIES PERCENTAGE OF COUNTIES WHOSE AVG N HOOD DIVERSITY INDEX IS IN TOP 25% OF US COUNTIES 1) NORTH DAKOTA 53 35 66% 2) OKLAHOMA 77 38 49% T3) SOUTH DAKOTA 66 32 48% T3) LOUISIANA 64 31 48% T3) MONTANA 56 27 48% T6) ALASKA 29 12 41% T6) TEXAS 254 105 41% 8) MINNESOTA 87 35 40% 9) NEBRASKA 93 33 35% 10) WEST VIRGINIA 55 18 33% T42) OHIO 88 8 9% T42) FLORIDA 67 6 9% 44) MICHIGAN 83 7 8% 45) INDIANA 92 6 7% T46) ARIZONA 15 0 0% T46) CONNECTICUT 8 0 0% T46) DELAWARE 3 0 0% T46) DISTRICT OF COLUMBIA 1 0 0% T46) NEW JERSEY 21 0 0% T46) RHODE ISLAND 5 0 0%

Table 2: Top Ten Highest Ranked US Counties by Average Neighborhood Household Income Diversity Index Score COUNTY COUNTYWIDE HOUSEHOLD INCOME DIVERSITY INDEX 2010-2014 AVG. NEIGHBORHOOD HOUSEHOLD INCOME DIVERSITY INDEX 2010-2014 1) OLDHAM COUNTY, TEXAS 88.86 88.86 2) ROGER MILLS COUNTY, OKLAHOMA 88.38 88.38 3) CAMPBELL COUNTY, KENTUCKY 88.35 88.35 4) GRANT COUNTY, NORTH DAKOTA 88.32 88.32 5) DIVIDE COUNTY, NORTH DAKOTA 88.28 88.28 6) SIERRA COUNTY, CALIFORNIA 88.28 88.28 7) GOLDEN VALLEY COUNTY, NORTH DAKOTA 88.25 88.25 8) BURKE COUNTY, NORTH DAKOTA 88.22 88.22 9) GOLIAD COUNTY, TEXAS 88.48 88.21 10) DUNN COUNTY, NORTH DAKOTA 88.17 88.17 T1,287) CAPE MAY COUNTY, NEW JERSEY 87.98 85.85 T2,963) ESSEX COUNTY, NEW JERSEY 89.30 83.82 These results suggest that, on average, neighborhoods in New Jersey are very homogeneous in terms of household income earned. This means that individual neighborhoods are more likely to be home to households from only a few of the ten income groups described by the US Census Bureau. As mentioned earlier, this stands in stark diametric contradiction to the fact that New Jersey counties as a whole are considered to be extremely diverse in their household income composition. The fact that such a stark contradiction exists between New Jersey s counties and the individual neighborhoods within hints at a high degree of segregation. This will be discussed thoroughly in our next post, as we examine the difference between a county s Average Neighborhood Household Income Diversity Index Score and its Countywide Household Income Diversity Index Score, while also discussing the impact of such differences. For now, see Table 3, below, to observe the Average Neighborhood Household Income Diversity Index Score of each New Jersey County.

Table 3: Household Income Diversity Index Score of NJ Counties COUNTY INCOME DIVERSITY INDEX 2010- US COUNTY QUARTILE 2014 CAPE MAY COUNTY, NEW JERSEY 85.85 2 WARREN COUNTY, NEW JERSEY 85.59 3 CUMBERLAND COUNTY, NEW JERSEY 85.57 3 HUDSON COUNTY, NEW JERSEY 85.51 3 SALEM COUNTY, NEW JERSEY 85.40 3 GLOUCESTER COUNTY, NEW JERSEY 85.23 3 CAMDEN COUNTY, NEW JERSEY 85.12 3 ATLANTIC COUNTY, NEW JERSEY 85.10 3 PASSAIC COUNTY, NEW JERSEY 85.10 3 BERGEN COUNTY, NEW JERSEY 84.96 4 MONMOUTH COUNTY, NEW JERSEY 84.73 4 UNION COUNTY, NEW JERSEY 84.72 4 MIDDLESEX COUNTY, NEW JERSEY 84.72 4 OCEAN COUNTY, NEW JERSEY 84.68 4 BURLINGTON COUNTY, NEW JERSEY 84.43 4 HUNTERDON COUNTY, NEW JERSEY 84.36 4 SUSSEX COUNTY, NEW JERSEY 84.24 4 MERCER COUNTY, NEW JERSEY 83.88 4 ESSEX COUNTY, NEW JERSEY 83.82 4 MORRIS COUNTY, NEW JERSEY 83.51 4 SOMERSET COUNTY, NEW JERSEY 83.37 4 I Rather than using census block groups as was done with racial and ethnic diversity, we have used census tracts to define neighborhoods. This was done because, unlike demographic information, there is a greater degree of error in dealing with socioeconomic information, such as income, at geographies below the census tract level. Author: John Manieri, AICP Research, Analysis, and Technical Assistance: Steve Scott