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Behavior Of Industrial Sectors Earnings Growth Rates In The United States

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  • Edward Nissan

    (University of Southern Mississippi)

  • George Carter

    (University of Southern Mississippi)

Abstract

The long-run equilibrium of the competitive model of the economy predicts that per capita income across industries and regions becomes equalized over time. Since earnings constitute a substantial part of income, that model predicts that earnings per person also equalizes over time. During the 1980s, state and regional income in the United States diverged. thereby contradicting the competitive model hypothesis as well as Simon Kuznets's hypothesis of income equality varying directly with economic development. This paper examines earnings growth rates of 10 industrial sectors by using actual state data for 1969-88 and projected state data for 1988-2000. Even though the findings indicate overall convergence in growth rates based on state data, continued average inequality between regions persists.

Suggested Citation

  • Edward Nissan & George Carter, 1994. "Behavior Of Industrial Sectors Earnings Growth Rates In The United States," The Review of Regional Studies, Southern Regional Science Association, vol. 24(3), pages 281-295, Winter.
    • Handle: RePEc:rre:publsh:v24:y:1994:i:3:p:281-295
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    References listed on IDEAS

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