Case Study Archives - Economic Innovation Group

DCI Stories: Economic Connectedness

Reuben Francis — Wed, 20 Aug 2025 20:20:50 +0000

These stories bring the Distressed Communities Index (DCI) to life and demonstrate how the index can be used to understand the challenges and opportunities that communities face across the United States. These stories are intended to both inform and inspire.

At its heart, the DCI is a tool for exploring the map of American well-being. The stories presented here highlight the many different geographies of economic inequality that traverse the country and explain why they matter, influencing every aspect of life, from the friends one makes to how long one can expect to live.

Friendships between social classes are rare in distressed communities

Social capital, the network of connections, shared norms, and trust woven between people, fosters community and collective prosperity. It can be broken down into two core types: bonding capital, which links individuals within groups, and bridging capital, which connects people across divisions such as race, class, and education. Bridging capital can open doors to career opportunities and educational pathways, ultimately fostering upward mobility.

The quantity and quality of social capital varies tremendously across neighborhoods. A novel dataset compiled by Raj Chetty and researchers at measures bridging capital with an economic connectedness index. The index uses zip code-level data on 21 billion Facebook friendships to quantify the degree to which people from lower socioeconomic status (SES) develop friendships with higher SES. A value of 0 indicates no friendships across the SES median, while a value of 1 suggests that low-SES individuals have an equal number of high- and low-SES friends.

The Distressed Communities Index (DCI) reveals a harsh truth: economic hardship erodes social connections, leaving distressed communities with far fewer bridges across social divides. In total,��21.7 million individuals live in a zip code that is both distressed and in the lowest decile for economic connectedness—45 percent of the total population in distressed communities. By contrast, a vanishingly small share of residents in prosperous and comfortable communities live in areas with weak social connections.

The nation’s capital has high rates of economic connectedness

In contrast to most other American cities, all five of the nation’s capital’s distressed and at-risk zip codes score highly on economic connectedness.

For instance, the city’s Anacostia neighborhood is ranked as distressed by the DCI but has an economic connectedness value of 0.92, slightly above the average for all zip codes.

The DC region has one of the country’s only prosperous and majority-Black counties

The surprisingly robust social connections between residents of DC’s struggling areas and those of higher socioeconomic status might be explained by the proximity of Prince George’s County, Maryland. This county is notable for being one of the few predominantly Black counties in the U.S. that ranks as comfortable on the Distressed Communities Index, with no majority-Black counties reaching prosperous status. DC’s mainly Black, economically challenged zip codes, isolated from other parts of the city by the Anacostia River, may have developed stronger social and economic bonds across the county line instead. The shared racial background could potentially foster economic linkages between these distressed DC neighborhoods and the more affluent communities in Prince George’s County.

Low economic connectedness prevails across Houston’s expanse of distressed zip codes

Houston, Texas has one of the largest urban expanses of distressed zip codes with very low economic connectedness among metro areas, although it is far from an outlier. Thirty-six Houston zip codes housing 1.1 million residents fall into the distress quintile and rate 0.7 or lower on economic connectedness. This concentration of economic hardship isolates residents and deprives them of the bridging social capital that could pave the way to upward mobility.

Eastex-Jensen is one of the most struggling neighborhoods in Houston

The Eastex-Jensen neighborhood lies at the heart of Houston’s cluster of economic distress and low connectedness. Half the population of this majority-Hispanic zip code wedged between two highways lacks a high school diploma, and the poverty rate is three times the national rate. A third of its residents are foreign-born. The zip code’s economic connectedness value is 0.48, significantly below the average for distressed zip codes.

The Minneapolis metro combines prosperity with high economic connectedness

At the other end of the spectrum, economic connectedness runs especially high in the prosperous areas of the upper Midwest–traditionally the country’s social capital heartland.

The Minneapolis metropolitan area has the largest cluster of prosperous zip codes with an above-average economic connectedness value. The suburban zip codes that ring the urban core have an average economic connectedness value of 1.2, indicating a high degree of connection between low- and high-SES individuals. In this cluster’s typical zip code, the median household income stands at $101,700, and 42 percent of the population holds a bachelor’s degree or higher.

The metropolitan area’s distressed zip codes also have high levels of economic connectedness, suggesting that the region may benefit from social capital spillovers across its economic and demographic divides.

Neighborhoods shape the lifetime outcomes of those who pass through them, especially children. Economic connectedness can help individuals from limited means overcome the disadvantages of place and realize their version of the American Dream. While connectedness is highly correlated with well-being at the neighborhood level, a few distressed communities stand out for offering especially strong social capital. These places may hold lessons for anyone interested in building more ladders of opportunity in communities across the United States.

Data source: 91PORN analysis of Opportunity Insights data.

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DCI Stories: Spatial Inequality

Reuben Francis — Wed, 20 Aug 2025 20:20:48 +0000

Economic inequality often divides neighboring communities

The DCI excels at revealing inequality at detailed geographic levels, often hidden when looking at broader state, metropolitan, or county data. Prosperous regions frequently contain neighboring communities with vastly different economic conditions, a phenomenon known as “spatial inequality.”

91PORN quantified spatial inequality by analyzing economic well-being variations across zip codes in counties with at least 500,000 residents. They weighted each zip code’s distress score by population size, resulting in a numerical measure of inequality within county borders.

The Dallas-Fort Worth metro area exemplifies how county-level data can mask neighborhood-level disparities. At first glance, the metro area appears as a patchwork of thriving and stable counties, including those containing downtown areas. More apparent distress seems concentrated in outlying rural communities.

The Dallas-Fort Worth metro shows how inequality can be masked at the county level

Viewing the same area at the zip code level reveals a huge variation in economic well-being. The map is now dotted with pockets of distress concentrated in the urban cores and radiating out into communities south of Dallas and around Fort Worth.

Tarrant County’s overall prosperity masks stark divides under the surface

Examining Tarrant County, Texas more closely reveals a different story. This county, which includes Fort Worth and has a population exceeding 2 million, ranks as prosperous overall. However, it also holds the distinction of having the ninth-highest spatial inequality nationwide. This striking disparity only becomes apparent when analyzing the DCI performance of individual communities within the county, highlighting the importance of granular data analysis.

Two neighboring zip codes share a border but have little else in common

The 75209 zip code, adjacent to Dallas’ affluent University Park district, stands out as one of Texas’ wealthiest areas. This neighborhood, with a majority white population, is characterized by its desirable property market, low poverty rates, and high educational levels, as evidenced by 71 percent of inhabitants possessing a Bachelor’s degree or higher. The region has a comparatively small immigrant population, with only 11 percent of residents born outside the United States.

In sharp contrast, the neighboring zip code 75220 in north Dallas represents one of Texas’ most economically challenged areas. This community is characterized by its large immigrant population, with nearly half of its residents born outside the United States. It is a predominantly Hispanic area, with 70 percent of inhabitants identifying as such. When compared to its affluent neighbor, 75220 grapples with significant socioeconomic hurdles. Residents here experience substantially lower incomes, and a striking 41 percent of the adult population lacks a high school diploma.

Spatial inequality and segregation are deeply intertwined across the country

These same dynamics play out within many large counties across the United States.

The nation’s most spatially unequal county is Shelby County, TN, home of Memphis. Here, prosperous suburbs contrast sharply with the economic distress closer to downtown.

Much of this geographic divide in well-being is tied to the racial makeup of communities and the history of residential segregation that continues to define maps of American life and well-being.

In Shelby County, the share of Black residents is significantly higher in distressed zip codes. Only zip code 38125—roughly approximating the suburban Richwood neighborhood and nearby communities—manages to break the barrier to prosperity facing most Black communities in the county.

Suburban counties tend to be more uniform with less obvious spatial inequality

By contrast, the most uniformly prosperous large counties tend to be more suburban.

Take Washington County, OR, just outside Portland, for example. It contains the municipalities of Beaverton and Hillsboro (along with sprawling blue-chip corporate and technology campuses for Intel and Nike) and boasts the lowest level of spatial inequality in the country.

Washington County, Oregon, consists almost entirely of economically well-off communities

Nearly every zip code within Washington County’s borders scores as prosperous or comfortable.

Places with such low levels of spatial inequality tend to be relatively homogenous, where people at similar income levels cluster and recycle their local tax dollars back into schools, infrastructure, and other amenities.

Explore spatial inequality across the nation’s largest counties

The table below displays the spatial inequality rankings for counties of at least 500,000 residents.

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DCI Stories: The 100 Largest Cities

Reuben Francis — Wed, 20 Aug 2025 19:35:47 +0000

Cities mirror the nation’s economic disparities

Cities mirror the nation’s economic disparities. While some neighborhoods boast extraordinary wealth, others grapple with extreme poverty, creating an urban landscape of stark contrasts.

The DCI analyzes data from the 100 most populated U.S. cities, ranging in size from New York’s 8 million residents to Spokane, Washington’s 228,000.

Affluent suburban cities in the Sun Belt, characterized by rapid growth and uniformly wealthy areas, top the list of prosperous cities. In contrast, older industrial centers, particularly in the Midwest, tend to rank as the most distressed.

Economic prosperity flourishes in smaller Sun Belt cities

The ten cities with the highest share of residents living in prosperous zip codes are:

Cities that rank highly on prosperity tend to be:

Small- to mid-sized: Larger cities contain more socioeconomic diversity within their borders. Smaller ones are frequently composed of fewer, more similar zip codes.

Suburban: These cities are typically wealthy suburbs situated on the outskirts of major metropolitan areas.

Located in the Sun Belt: These cities are predominantly found in the southern and western United States, with states like Arizona, California, and Nevada hosting a significant number.

Metro Phoenix contains the top three most prosperous cities

The Phoenix region boasts a concentration of affluent urban areas, including three of the top ten cities nationally with the highest percentage of residents living in prosperous ZIP codes: Scottsdale, Gilbert, and Chandler. These cities share characteristics with other high-ranking suburban counterparts in the Southwest, including Henderson, NV (5th), Irvine, CA (7th), and North Las Vegas, NV (10th).

The Phoenix metro region is notable because it demonstrates how municipal boundaries often reinforce economic segregation. While Phoenix and Glendale are home to the region’s most disadvantaged neighborhoods, surrounding incorporated suburbs tend to enjoy higher levels of prosperity.

Gilbert (T-1st)

Primarily a farming town just a few decades ago, the city’s rise has rapidly grown from less than 2,000 residents in 1970 to 260,000 today. The DCI’s top-ranked city has a highly educated population and an exceptionally low poverty rate. High incomes, rapid employment growth, and low housing vacancy rates (reflecting high demand to live in the place) boosted it to the number one ranking. The city recently ranked as the in America.

Scottsdale (T-1st)

Often dubbed “The West’s Most Western Town,” this city exemplifies the prosperity prevalent in the region. It has experienced rapid population growth, boasts the highest high school graduation rate among the nation’s 100 largest cities, and enjoys high-income levels.

Renowned for its sunny climate, averaging 314 days of sunshine annually, the DCI’s top-ranked city is a particularly appealing retirement destination. Its median age is nearly 15 years older than that of neighboring Phoenix.

Chandler (4th)

Chandler benefits from low poverty rates and strong housing demand, resulting in exceptionally low vacancy rates compared to other large U.S. cities.

The city is a significant hub for high-tech manufacturing, with over 12,000 employees working in the sector. Intel maintains a major campus in Chandler, and the city has attracted numerous tech companies, driving rapid job growth.

High shares of urban prosperity are also found in the mid-Atlantic

On the opposite side of the country, Chesapeake, VA (3rd) has quietly emerged as a significant center of economic well-being.

Situated in the Hampton Roads metropolitan area, the city and the surrounding region are defined by a strong military presence and a thriving tourism industry centered around Atlantic coast resorts. Chesapeake exhibits low poverty rates, high educational achievement, and relatively high incomes.

Economic distress is most prominent in legacy cities

The ten cities with the highest share of residents living in distressed zip codes are:

Cities grappling with widespread economic hardship often suffer from high poverty rates stemming from deep-rooted social and economic issues. These cities typically share the following characteristics:

Legacy Cities: Primarily located in the Midwest and parts of the South, these cities have faced significant challenges in transitioning from economies reliant on traditional industries like manufacturing to a more technologically driven, knowledge-based economy. This transformation has often been uneven, leaving many residents behind.

Racial Segregation: A substantial number of economically distressed cities also exhibit stark racial divisions. Historical systemic racism has contributed to the persistent economic disparities between affluent and impoverished neighborhoods.

Nearly all of the country’s most distressed cities are in the heartland

Many cities with high concentrations of distressed communities are in the former industrial Midwest and Northeast. Cleveland and Newark top the list, with their entire populations in distressed neighborhoods. Other high-ranking cities include Detroit, Buffalo, Baltimore, and Milwaukee, all of which share a history of industrial decline.

Despite economic challenges, these cities have valuable assets like universities, corporate offices, and healthcare institutions. New Orleans, Memphis, and St. Louis also rank among the most distressed cities, facing similar challenges in transitioning from legacy industries, attracting skilled workers, and developing high-tech sectors.

New Orleans is a petrochemical hub, while St. Louis has ties to the oil and automotive industries. Memphis, despite being home to FedEx and a major cargo airport, struggles to share in regional economic prosperity, with significant disparity between the city and its affluent suburbs.

Cleveland, formerly a major industrial hub renowned for steel production, has experienced a dramatic population decline since 1950, losing over half of its residents as manufacturing jobs vanished. The city’s economic woes are pervasive, with every zip code classified as distressed. On average, a third of each zip code’s population lives below the poverty line. Most areas are seeing a decline in both employment opportunities and business activity. In a typical zip code, African Americans constitute approximately half of the residents.

Newark (T-1st)

Unlike Cleveland, Newark has not experienced as severe a population decline, even adding residents in the last two decades. Despite being entirely composed of distressed ZIP codes, Newark benefits from its location within the nation’s largest metropolitan area. The city’s vacancy rates are relatively low, and while jobs have decreased in the average ZIP code, the number of establishments has grown. This, coupled with the city’s high average foreign-born population (31 percent), suggests a vibrant economy, even amidst widespread poverty.

Detroit (2nd)

The latter half of the 20th century saw Detroit bear the brunt of deindustrialization’s negative effects. The city experienced a swift and dramatic exodus of residents, leaving a lasting impact. Even now, roughly one in four homes in an average zip code stands empty. Due to widespread white flight from the most troubled areas, about 75 percent of residents in a typical zip code are Black. Although there have been attempts to breathe new life into various neighborhoods, particularly the downtown area, Detroit’s population continues to dwindle.

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DCI Stories: Life Expectancy

Reuben Francis — Wed, 20 Aug 2025 16:31:23 +0000

The gap in life expectancy between prosperous and distressed communities is significant

The economic hardship that defines the typical distressed county exacts a severe human cost. Public health crises like the COVID-19 pandemic and the opioid epidemic disproportionately impact the country’s most vulnerable places. Higher rates of death and disability not only lower life expectancy in distressed communities but also prevent people from fully participating in the economy.

The average resident of a distressed county has a life expectancy of 72 years compared to 79 years for a prosperous county. As a group, distressed counties have less access to healthcare and healthy food options, more deaths of despair, and higher rates of mental illness.

Drug-related deaths per capita in the typical distressed county are more than twice as high as in prosperous counties,��and even 1.5 times higher than at risk counties.

Petersburg, Virginia, has a life expectancy on par with many developing countries

Petersburg, Virginia, has one of the lowest life expectancies among all U.S. counties and the lowest life expectancy of counties with a population of at least 30,000. The average resident only lives 65 years. A substantial 11-year gap separates Petersburg’s life expectancy from the national average, putting the city on par with African countries like Sudan and Ethiopia.

Located just south of Richmond, Virginia, Petersburg is a majority-Black community where 22 percent of residents are below the poverty line, and 17 percent of homes are vacant. A staggering 99 percent of children qualify for free or reduced lunch, over a third live in poverty, and more than half hail from single-parent homes.

There are ongoing efforts to revitalize Petersburg’s historic downtown and create economic opportunities for its residents. However, these statistics, paired with the DCI, reflect a community grappling with concentrated hardship that impacts adults and children alike.

Arlington, Virginia, highlights the link between economic well-being and longevity

Fewer than two hundred miles north of Petersburg lies Arlington County, Virginia, which has one of the highest life expectancies in the country.

Life expectancy in Arlington County is 84.7 years, nearly 20 years higher than in Petersburg (and even higher than Sweden). This difference in life expectancy is not just explained by better health outcomes for adults. The infant mortality rate in Arlington is 2.7 per 1,000 births compared to 11.4 in Petersburg.

The median household income in Arlington is a staggering $137,387, and 76 percent of the population holds a college degree. This potent blend of financial security and educational attainment highlights how socioeconomic factors can influence health. Higher education and income levels often correlate with greater social cohesion, healthier lifestyle choices, and better access to quality healthcare.

Appalachia has the highest rates of drug-related deaths

Another couple hundred miles west, the opioid epidemic has ravaged multiple corners of struggling Appalachia. Most of the region is economically distressed and rural, with per capita drug-related deaths well above the national average.

McDowell and Logan Counties, West Virginia, rank among the ten worst counties in the entire country on drug deaths per capita, with 156.9 and 146.9 drug-related deaths per capita, respectively.

These sobering statistics are inextricably linked to the region’s severe economic hardship. McDowell and Logan are two of the most distressed counties in the country. A staggering 70 percent of prime-age adults in McDowell County are out of work, and Logan County fares little better, with just under half of its prime-age population employed.

The rates of disability among working-age adults in both counties far surpass the national average, pushing many potential workers further from the workforce. Between 2018 and 2022, both counties grappled with declining jobs and businesses, shrinking the pool of available opportunities for residents.

Baltimore’s drug-related deaths are comparable to those in Appalachia

Baltimore City, Maryland, is the only urban county with drug-related deaths per capita comparable to rates in rural Appalachia. It had a total of 800 deaths in 2022, or 140.4 deaths per 100,000 residents. To put this in perspective, Baltimore’s population is only one-third that of Wayne County (Detroit), yet its per capita death rate is three times higher.

Baltimore grapples with significant economic and social challenges. Nearly one-quarter of its prime-age residents are unemployed, and the city has witnessed a steady decline in both businesses and population. This economic hardship is compounded by one of the nation’s highest homicide rates. Nearly two-thirds of its population identifies as Black, a stark demographic contrast to the primarily white populations found in the Appalachian counties.

Prosperous, exurban counties tend to have few drug-related deaths

Among counties with exceptionally low drug-related death rates in 2022, Fort Bend County, Texas, is one of the largest in population.

Home to roughly 830,000 residents, this affluent Houston suburb saw only 114 such deaths in 2022 (12.8 deaths per capita), a rate significantly lower than Baltimore’s.

While non-Hispanic white residents remain the county’s largest group at 30 percent, Fort Bend has sizable Hispanic (25 percent) and Black (20 percent) communities. Notably, nearly half of the county’s residents have a Bachelor’s degree, and nearly one-third are foreign-born. Furthermore, its median household income surpasses the surrounding metro area by 40 percent, highlighting its significant economic strength.

The DCI reveals how health and economic distress are linked

A crosswalk of drug-related deaths and life expectancy clearly shows how economic distress is closely correlated with poor health and premature death. The link between economic distress and poor health outcomes is further underscored by health researchers’ use of the DCI. Studies leveraging the DCI have revealed associations between economic distress and higher rates of ,��, and certain .

Data source: 91PORN analysis of CDC Wonder data and the University of Wisconsin Population Health Institute.

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DCI Case Study: Chamber of Commerce Foundation Investments

Stephen Leverton — Tue, 20 Aug 2024 12:40:42 +0000

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DCI Case Study: Clearloop Solar Investments

Reuben Francis — Wed, 14 Aug 2024 13:00:27 +0000

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