Trends in U.S. Income Inequality: Evidence from a Panel of States

QUARTERLY REVIEW OF ECONOMICS AND FINANCE, Vol. 36, No. 1, Spring 1996

Posted: 14 May 1998

See all articles by Mark Partridge

Mark Partridge

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Dan S. Rickman

Oklahoma State University - Stillwater - Department of Economics & Legal Studies in Business

William Levernier

Georgia Southern University

Abstract

Many studies have attempted to explain the sharp increase in U.S. income inequality. These studies typically used time series data of the U.S. or compared the trends in the U.S. with those in other countries. We employ panel data from 1960-1990 for the 48 contiguous states to examine trends in U.S. income inequality. Advantages of our panel data set include the addition of a large number of sufficiently similar cross-sectional units and extension of the period of analysis to before the increase in U.S. income inequality. Based on state fixed effect estimates, we find that greater international migration, greater metropolitan shares of population, and increased percent of households headed by females increase income inequality while greater participation rates decrease income inequality. Also, advanced stages of economic development may increase income inequality. Other factors such as unionization did not affect state income inequality.

JEL Classification: J31, J10, J61, N32, R11

Suggested Citation

Partridge, Mark D. and Rickman, Dan S. and Levernier, William B., Trends in U.S. Income Inequality: Evidence from a Panel of States. QUARTERLY REVIEW OF ECONOMICS AND FINANCE, Vol. 36, No. 1, Spring 1996. Available at SSRN: https://ssrn.com/abstract=3146

Mark D. Partridge (Contact Author)

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

Dan S. Rickman

Oklahoma State University - Stillwater - Department of Economics & Legal Studies in Business ( email )

201 Business Building
Stillwater, OK 74078-0555
United States

William B. Levernier

Georgia Southern University ( email )

P.O. Box 8151
Statesboro, GA 30460-8151
United States
(912) 681-5161 (Phone)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
1,188
PlumX Metrics