TITLE:
An Analysis of Regional Income Variation in the United States: 1969-2013
AUTHORS:
Orley M. Amos, Tim C. Ireland
KEYWORDS:
Regional Income Inequality, Kuznet’s Inverted-U, Income Convergence, Regional Income Variation
JOURNAL NAME:
Modern Economy,
Vol.8 No.2,
February
24,
2017
ABSTRACT: This paper investigates the variation of per capita
personal income among counties within each state from 1969-2013. Department of
Commerce BEA data and Department of Labor BLS data for 1969 to 2013 are
analyzed. This study follows up on previous analysis of U.S. regional income
variation by adjusting time series estimates for serial correction and using
random effects models for panel data analysis. In addition, potential short-run
disruption of a longer run trend is investigated by including an unemployment
rate variable into the model. Results suggest that a general pattern of per
capita income divergence has transpired in recent decades, contrary to
conventional expectations of convergence.