Abstract

Inequality and Growth in the United States: Evidence from a New State-Level Panel of Income Inequality Measures

Mark W. Frank
Sam Houston State University - College of Business Administration - Department of Economics and International Business

Economic Inquiry, Forthcoming

Abstract:
This paper introduces a new comprehensive panel of annual state-level income inequality measures spanning the postwar period 1945-2004. For many states, the share of income held by the top decile experienced a prolonged period of stability after World War II, followed by a substantial increase in inequality during the 1980s and 1990s. This paper also presents an examination of the long-run relationship between income inequality and economic growth. Our findings indicate that the long-run relationship between inequality and growth is positive in nature and driven principally by the concentration of income in the upper end of the income distribution.

Keywords: Income Inequality, Economic Growth

JEL Classifications: D31, O40

Accepted Paper Series

Date posted: September 15, 2008 ; Last revised: September 15, 2008

Suggested Citation

Frank, Mark W., Inequality and Growth in the United States: Evidence from a New State-Level Panel of Income Inequality Measures (September, 11 2008). Economic Inquiry, Forthcoming . Available at SSRN: http://ssrn.com/abstract=1266774

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Contact Information

Mark W. Frank (Contact Author)

Sam Houston State University - College of Business Administration - Department of Economics and International Business ( email )

SHSU Box 2118
Huntsville , TX 77341-2118
United States
836-294-4890 (Phone)
936-294-3488 (Fax)

HOME PAGE: http://www.shsu.edu/~eco_mwf/