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Income Inequality & ML Fairness Analysis

A machine learning fairness analysis of wage inequality across demographic groups in the United States, using 2022 American Community Survey (ACS) data.

Paper

📄 Read on SSRN

Acknowledgments

The author thanks Professor Yaser S. Abu-Mostafa of the California Institute of Technology for his encouragement and support.

Key Findings

  • Education is the single strongest predictor of income (feature importance = 0.241)
  • A graduate degree earns 2.18× the median income of a high school diploma
  • 100% of the gender wage gap is unexplained by observable characteristics
  • 102.5% of the White–Black wage gap is unexplained by observable characteristics
  • Gradient Boosting achieves R²=0.213, outperforming OLS baseline

Methods

  • 4 ML models: OLS, Ridge, Random Forest, Gradient Boosting
  • Fairness audit: demographic parity, residual bias, equalized R² by group
  • Oaxaca-Blinder decomposition of gender and racial wage gaps
  • Dataset: 85,000 records from 2022 ACS PUMS (5 states)

Reproduce

pip install -r requirements.txt python download_acs.py python run_analysis.py

Author

Naomi Danganan — Independent Researcher

About

Machine learning fairness analysis of U.S. wage inequality using 2022 ACS data. Gradient Boosting, Oaxaca-Blinder decomposition, fairness audit

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