Income Convergence in the United States: A Tale of Migration and Urbanization

16 Pages Posted: 4 Nov 2008 Last revised: 5 Dec 2008

See all articles by Riccardo DiCecio

Riccardo DiCecio

Federal Reserve Bank of St. Louis - Research Division

Charles S. Gascon

Federal Reserve Bank of St. Louis

Date Written: December 4, 2008

Abstract

We use non-parametric distribution dynamics techniques to reassess the convergence of per capita personal income (PCPI) across U.S. states and across metropolitan and nonmetropolitan portions of states for the period 1969-2005. The long-run distribution of PCPI is bimodal for both states and metro/nonmetro portions. Furthermore, the high income mode of the distribution across metro and nonmetro portions corresponds to the single mode of the long-run distribution across metro portions only. These results (polarization or club-convergence) are reversed when weighting by population. The long run distributions across people are consistent with convergence. Migration and urbanization are the forces behind convergence.

Keywords: convergence, migration, urbanization

JEL Classification: O51, R11, R23

Suggested Citation

DiCecio, Riccardo and Gascon, Charles S., Income Convergence in the United States: A Tale of Migration and Urbanization (December 4, 2008). Available at SSRN: https://ssrn.com/abstract=1294860 or http://dx.doi.org/10.2139/ssrn.1294860

Riccardo DiCecio (Contact Author)

Federal Reserve Bank of St. Louis - Research Division ( email )

411 Locust St
Saint Louis, MO 63011
United States

Charles S. Gascon

Federal Reserve Bank of St. Louis ( email )

411 Locust St
Saint Louis, MO 63011
United States

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