Market Watch: The distance between a wealthy neighbor and a poor one may be mere miles, but the chasm between the two worlds is often too vast to surmount, according to a report by an advocacy group.
“’There is a growing body of evidence that the more time an individual spends living in a distressed community — especially at childhood — the worse that individual’s lifetime chances of achieving economic stability or success,’ said the Economic Innovation Group.”
“The EIG on Thursday released its 2016 edition of the Distressed Communities Index, which shows that about 50.4 million Americans live in distressed neighborhoods today, up from 30 million in 2015.”
“The Distressed Communities Index mapped how each zip code was faring based on the following metrics: education, housing vacancy, employment rate, poverty rate, median income ratio, employment trends and number of business establishments.”
“’The ranks are then averaged and normalized to be equivalent to percentiles, resulting in distress scores between 0 and 100. The higher the distress score, the greater the distress,’ said the EIG in explaining its methodology.”