An Economic Analysis Of The Relationship Of Poverty And Income Inequality In Rural West Virginia

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An Economic Analysis Of The Relationship Of Poverty And Income Inequality In Rural West Virginia

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de Sousa, Semoa C. B.
Gebremedhin, Tesfa G.
Smith, Dennis K.
Colyer, Dale

Abstract

Ordinary and two-stage least square regressions were used to examine the major determinants of poverty and income inequality with cross-sectional data of 38 rural counties of West Virginia. The empirical findings confirm the possibility of simultaneity between poverty and income inequality and poverty level is the main determinant of increased levels of income inequality. The proportions of population in welfare, population of age 65 or older, female-headed households, people unemployed, and the level of inequality contributed to increased poverty levels. The proportion of employment shares in finance, insurance and real estate, and per capita income contributed to reduced poverty levels. But, per capita income, the proportion of human capital stock, and the proportion of employment shares in manufacturing contributed to reduced income inequality.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20536.

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Date of creation: 2001
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Handle: RePEc:ags:aaea01:20536

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Lerman, Robert I, 1996. "The Impact of the Changing US Family Structure on Child Poverty and Income Inequality," Economica, London School of Economics and Political Science, vol. 63(250), pages S119-39, Suppl.. [Downloadable!] (restricted)
Lars Osberg, 1998. "Economic Insecurity," Discussion Papers 0088, University of New South Wales, Social Policy Research Centre. [Downloadable!]
Bishop, John A & Formby, John P & Thistle, Paul D, 1992. "Explaining Interstate Variation in Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 553-57, August. [Downloadable!] (restricted)
Allen-Smith, Joyce E. & Wimberley, Ronald C. & Morris, Libby V., 2000. "America'S Forgotten People And Places: Ending The Legacy Of Poverty In The Rural South," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(02), August. [Downloadable!]

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