Posted by: Richie Bernardo

The American narrative is a story of diversity. Our history tells of many different peoples coming together from every walk of life to form what is today a complex tapestry of backgrounds. And our story will continue to advance that narrative in the decades to come. The U.S. Census Bureau predicts that by 2044 the U.S. will no longer have a single ethnic majority, currently non-Hispanic whites, and will grow increasingly “majority-minority” in the years to follow.

But U.S. diversity spans more than just racial lines. In many states, the population reflects an eclectic mix of not just races but also cultures, religions, economic statuses, educational backgrounds and other characteristics, as people of various demographic profiles are forced to come into contact with one another.

In order to determine where idea and identity exchanges have occurred at the highest level — and where the population is relatively more homogeneous — WalletHub’s analysts compared the 50 states across five key diversity categories listed below. For a more local perspective on America’s ever expanding diversity, we also conducted our analysis at the city level. Read on for our findings, expert commentary from a panel of researchers and a full description of our methodology.

1. Main Findings
2. Detailed Findings
3. Ask the Experts
4. Methodology

Main Findings

 

Overall Rank	State	Total Score	Effective	Annual	Difference	Annual	Adjusted
1	Alaska	5.69%	$3,066	-46.85%	$4,237	6
2	Delaware	6.02%	$3,246	-43.74%	$3,830	1
3	Montana	6.92%	$3,728	-35.37%	$3,561	3
4	Wyoming	7.45%	$4,015	-30.40%	$4,312	2
5	Nevada	7.72%	$4,161	-27.86%	$4,028	7

 

Detailed Findings

 

Ask the Experts

Diversity can have profound effects on communities. For insight on such outcomes and advice on achieving social integration, we asked a panel of experts to share their thoughts on the following key questions:

1. What are the pros and cons of living in a diverse state?
2. What impact does diversity have on social innovation and social cohesion? What about violence and social unrest?
3. What can policymakers do to encourage integration across neighborhoods?
4. How can states take advantage of their diversity in order to increase economic growth?

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• Adrian Cruz Assistant Professor of Sociology at the University of Massachusetts Lowell
• Alexandra Filindra Associate Professor of Political Science and Affiliated Faculty of Latin-American and Latino Studies at the University of Illinois at Chicago
• Juan Carlos Gomez Director of the Carlos A. Costa Immigration and Human Rights Clinic at Florida International University College of Law

Adrian Cruz Assistant Professor of Sociology at the University of Massachusetts Lowell What are the pros and cons to living in a diverse state? Diversity can be understood in many ways -- class, gender, race/ethnicity, immigrant/citizenship status. Communities that are diverse in terms of race and ethnicity offer opportunities for people to interact with others who may be very different from themselves. Such interactions can be invaluable in forging bonds across what have historically been lines of division and inequality in the U.S. As for “cons,” or disadvantages of diversity -- certainly, conflict could erupt between people because of racial/ethnic prejudice and acts of discrimination. While the word “diversity” is a buzzword these days in the U.S. that inspires images of unity and cohesion, the country has a long history of deep tension between racial and ethnic groups. What impact does diversity have on social innovation and social cohesion? What about violence and social unrest? As stated above, race and ethnic relations have often boiled over into tense and violent confrontations. We need not look further back into history than mere weeks ago, at the situation that arose in Charlottesville, Virginia. A lack of unity between various race/ethnic groups, in my opinion, impedes efforts to assemble a racially integrated United States of America. Consequently, divisions such as these prevent us from becoming the most innovative, and I would also say productive, country that we can be. What can policymakers do to encourage integration across neighborhoods? The United States continues to exhibit high levels of racial segregation across the country. Social scientists have developed sophisticated tools to assess and measure levels of segregation throughout the U.S. And the news is not good. We remain a society in which our schools, neighborhoods, and churches remain in separate “racial bubbles.” Racial and ethnic minorities, disturbingly, live in poorer neighborhoods, and attend poorly- and underfunded schools. Policymakers must look to invest in communities of color, such as struggling city cores (e.g., Newark, Detroit, Baltimore) and poor rural areas (which include many white communities) to provide economic and educational opportunity that is on par with wealthier parts of the U.S. How can states take advantage of their diversity in order to increase economic growth? States can seek to ensure that minority communities are guaranteed equal access and treatment. In making sure doors remain open to everyone, our streets, classrooms, and workplaces have a chance of becoming truly integrated spaces. Having a diverse set of citizens, workers and students translates into a more diverse set of skills -- more languages spoken, contacts with a wider span of networks, and variant life experiences and backgrounds. The list could go on. Alexandra Filindra Associate Professor of Political Science and Affiliated Faculty of Latin-American and Latino Studies at the University of Illinois at Chicago What are the pros and cons to living in a diverse state? There are many forms of diversity: social, political, economic. Diversity challenges our ways of thinking, our assumptions about people. Most people prefer the comfort of their own “bubble” because that provides safety, even though a lot of times it is not an accurate reflection of the real world. Exposure to diverse environments forces us to update our thinking about the world. What impact does diversity have on social innovation and social cohesion? What about violence and social unrest? Social diversity can be the engine for new ideas. People who come from different parts of the world bring with them approaches and ways of thinking that can provide new solutions to old problems. Many immigrants are risk-takers -- choosing to move to a new place is a major risk in itself. Those who choose to migrate for the purpose of economic and social advancement tend to be people who are high achievers and likely to be productive economic citizens. Many are very educated with advanced degrees. But even those who are not tend to be people who believe in the American Dream of economic mobility and are willing to invest their labor to reach that dream. The introduction of people who are different in a socially cohesive community can be very disorienting for community members. Especially in communities where ethnic and racial ideologies are strong and people are raised to believe in their own group’s superior norms and abilities. In these situations, the role of elites is crucial. People follow the edicts of their trusted elites. When such leaders promote tolerance and integration, mass opinion follows. When leaders promote anger, threat, and adversarial relationships with newcomers, the people listen to that, too and respond accordingly. What can policymakers do to encourage integration across neighborhoods? Policymakers should stop using “dog whistle” politics and outright prejudice. They should encourage inter-group contact and embrace policies that enable people to interact with each other. School integration policies have been crucial in promoting and developing tolerance. Neighborhood integration today is to a great extent an economic problem. The policy needs to provide comprehensive, structural approaches to poverty alleviation. Livable wages, full-time jobs, child care programs, policies that allow people to save and invest in their communities will help with integration. How can states take advantage of their diversity in order to increase economic growth? States can invest in immigration, both foreign and domestic. Some cities have toyed with the idea of providing incentives for individuals and families to move into declining or abandoned neighborhoods. Maybe instead of giving subsidies to corporations to move from one state to another, we should go back to the old model of incentivizing families and small-scale entrepreneurs to come into our cities and states. In the 19th century, the demands of developing the West led states and territories to offer ten acres and a mule as incentives for people to come in and cultivate the land. Maybe that model has merit. We know that immigration creates its own demand for goods and services. Inviting people to populate a neighborhood can create jobs, because these people will need help to remodel and maintain homes, fix their cars, buy goods. Juan Carlos Gomez Director of the Carlos A. Costa Immigration and Human Rights Clinic at Florida International University College of Law What are the pros and cons to living in a diverse state?

• Pros -- life is much richer in a diverse state -- music, food, art, architecture, stories;

• Cons -- people take a while to trust each other and blend in with each other. In worst case scenarios, people stay within their circles and live in fear of each other.

What impact does diversity have on social innovation and social cohesion? What about violence and social unrest? I don't see violence or social unrest as an issue. I do see entrepreneurship in business that makes life richer in many ways. I see efforts by social and business leaders to transcend little differences and build on common interests -- like educating children and keeping them safe. What can policymakers do to encourage integration across neighborhoods? Education is the key to this issue. Policymakers must make sure that persons from all backgrounds, regardless of socioeconomic level, nationality, race, religion, or gender have a real and effective education. By education I mean teaching how to use the tools to enjoy a well-rounded life. I mean teach the many things that each culture can provide, teach how to communicate with each other, and teach how to appreciate and understand each other. Transcultural communication is key to problem-solving. Education is much more than sitting in a classroom, reading a textbook, staring at a computer screen, and heading from and to an isolated home in a cultural ghetto to a school building. Policymakers must incentivize innovation in meaningful education -- not prepackaged garbage that results in issuing a meaningless certificate. How can states take advantage of their diversity in order to increase economic growth? If a state can harness the entrepreneurial spirit, the drive to prosper in our country, the positive side of each culture, others will want to invest and become a part of this state.

Methodology

In order to determine the most and least diverse states in America, WalletHub’s analysts compared the 50 states across five key dimensions: 1) Socio-economic Diversity, 2) Cultural Diversity, 3) Economic Diversity, 4) Household Diversity and 5) Religious Diversity.

We evaluated those dimensions using 13 relevant metrics, which are listed below with their corresponding weights and subcomponents. Each metric was graded on a 100-point scale.

Finally, we determined each state’s weighted average across all metrics to calculate its total score and used the resulting scores to rank-order the states. A total score of 100 represents the most diverse state.

We conducted our analysis using the Herfindahl-Hirschman Index method, which is a commonly accepted measure of market concentration that also works effectively as a general-purpose measure of diversity (e.g., race/ethnicity, occupations, languages, nationalities).

1. Socioeconomic Diversity - Total Points: 25
   1. Household-Income Diversity: Weight = Double Weight (~16.67 Points)
      • $34,999 or Less
      • $35,000 - $49,999
      • $50,000 - $74,999
      • $75,000 - $99,999
      • $100,000 - $149,999
      • $150,000 or more
   2. Educational-Attainment Diversity: Weight = Full Weight (~8.33 Points)
      • Without a high school diploma
      • High school diploma and perhaps some college or an associate’s degree
      • Bachelor’s degree
      • Graduate or professional degree

    

2. Cultural Diversity - Total Points: 25
   1. Racial & Ethnic Diversity: Weight = Triple Weight (~12.50 Points)
      • Hispanic or Latino
      • White (not Hispanic or Latino)
      • Black or African American (not Hispanic or Latino)
      • Asian (not Hispanic or Latino)
      • Other (American Indian and Alaska Native, Native Hawaiian and Other Pacific Islander, some other race alone, two or more races and not Hispanic or Latino)
   2. Linguistic Diversity: Weight = Double Weight (~8.33 Points)
      • English
      • Spanish
      • Other Indo-European Languages
      • Asian & Pacific Islander Languages
      • Other Languages
   3. Birthplace Diversity: Weight = Full Weight (~4.17 Points)
      • In State of Residence
      • Northeast Region
      • Midwest Region
      • South Region
      • West Region
      • U.S. Territory & Abroad (if born to American parent(s))
      • Foreign Nation

    

3. Economic Diversity - Total Points: 20
   1. Industry Diversity: Weight = Triple Weight (~12.00 Points)Note: Considers the civilian employed population aged 16 and older
      • Agriculture, Forestry, Fishing and Hunting, and Mining
      • Construction
      • Manufacturing
      • Wholesale Trade
      • Retail Trade
      • Transportation and Warehousing, and Utilities
      • Information
      • Finance and Insurance, and Real Estate and Rental and Leasing
      • Professional, Scientific, and Management, and Administrative and Waste-Management Services
      • Educational Services, and Health Care and Social Assistance
      • Arts, Entertainment, and Recreation, and Accommodation and Food Services
      • Other Services (excluding Public Administration)
      • Public Administration
   2. Occupational Diversity: Weight = Full Weight (~4.00 Points)Note: Considers the civilian employed population aged 16 and older
      • Management, Business, Science, and Arts Occupations
      • Service Occupations
      • Sales and Office Occupations
      • Natural-Resources, Construction, and Maintenance Occupations
      • Production, Transportation, and Material Moving Occupations
   3. Worker-Class Diversity: Weight = Full Weight (~4.00 Points)Note: Considers the civilian employed population aged 16 and older
      • Private Wage and Salary Workers
      • Government Workers
      • Self-Employed Workers (operating their own, unincorporated businesses)Note: Includes “people who worked for profit or fees in their own unincorporated business, professional practice, or trade or who operated a farm,” according to the U.S. Census Bureau.
      • Unpaid Family Workers

    

   Source:

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