20 states ranked according to economic equality

Black Americans face constant economic inequality in the U.S., making it more challenging to keep up with the rising cost of living. But some states have smaller economic gaps than others, and it may not be the states you think.

WalletHub ranked all the states and the District of Columbia according to the differences between white and Black Americans across eight metrics such as annual income, homeownership, unemployment and homelessness. While no state is immune to racial discrimination, states like Alaska and Arizona found themselves with the shortest gaps in economic disparities, and the District of Columbia placed last, scoring over 68 points below Alaska. 

"In Alaska, the top spot on our list, we noticed a low disparity in unemployment, indicating a fair and stronger labor market," says Jill Gonzalez, an analyst at WalletHub. "Similarly, Arizona has one of the lowest gaps in annual income, which means people receive equal pay for their work regardless of race. Meanwhile, the District of Columbia seems to have the biggest disparities between white and black Americans in most areas, showing a potential racial destabilization in their job market."

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Notably, states with the biggest populations of Black Americans, namely New York, Georgia, California, Texas, Illinois and Florida, did not make it into the top ten. In fact, Illinois placed second to last; Florida had the best score out of these states, placing eleventh. In other words, diverse states struggled more with economic equality, underlining how racial discrimination plays a pivotal role in a community's ability to thrive. 

Here are 10 state economies with the most and least racial equality between Black and white Americans, according to WalletHub.