2014 New York City Income Diversity
For each neighborhood I identify the percent of households in the following four groups: (1) less than $25,000 per year, (2) $25,000 to $50,000 per year, (3) $50,000 to $100,000 per year, and (4) over $100,000 per year. HHI is equal to the sum of the square of those percentages for each neighborhood. I reverse HHI and divide by 100 (rHHI) to ease interpretation. The theoretical minimum rHHI (0) indicates no income diversity – a single income group in the space. The theoretical maximum rHHI (100) indicates perfecact income diversity – an equal proportion of all four income groups.
Neighborhoods are defined as a given census tract plus all census tracts with 1 mile of that census tract (accounting for bodies of water). The rHHI value for each tract on the map represents the neighborhood income diversity for a person residing in that tract.