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Do people earn more or less in Texas?

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Tino Sanandaji

(Read caption) This chart shows income rates in Texas as compared to the rest of the country. Texas' average income is below the national average, even though whites, blacks, and hispanics in Texas have higher incomes that in the US at large.

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Average income in Texas is lower than the national average in the United States.

Yet as Tino Sanandaji points out, this is entirely and more the result of the fact that groups that typically have low income, primarily Hispanics, are over-represented in Texas. However, Whites, Blacks and Hispanics all have higher income in Texas than in the rest of the country.

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Adjusting for the lower cost of living in general and lower cost of housing in particular would make Texas look even better.