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Assessing Demographic Changes and Income Inequalities: A Case Study of West Virginia

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  • Yohannes Hailu

    ()
    (Division of Resource Management, West Virginia University)

  • Yohannes Hailu

    ()
    (Division of Resource Management, West Virginia University
    Regional Research Institute, West Virginia University)

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    Abstract

    The study examines the trends in demographic changes and income inequalities in West Virginia from 1990 to 2000. The relationship between economic growth and income inequality is tested using a system of equations model and county level data. The empirical results indicate that except for 65 years and above age group, income inequality increased in all other age groups. The highest increase was in the age group under 25 years and those 35 to 44 years. Using 3-Stage-Least-Squares estimations, the endogenous dependent variable per capita income growth was positively related with population and employment growth, but it is significantly and negatively related with income inequality measured by county level Gini index. This indicates that higher income inequality is associated with slower economic growth in West Virginia.

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    File URL: http://rri.wvu.edu/wp-content/uploads/2012/11/gebremedhinwp2005-2.pdf
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    Bibliographic Info

    Paper provided by Regional Research Institute, West Virginia University in its series Working Papers with number 200502.

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    Length: 25 pages
    Date of creation: 2005
    Date of revision:
    Handle: RePEc:rri:wpaper:200502

    Contact details of provider:
    Postal: 886 Chestnut Ridge Road, P.O. Box 6825, Morgantown, WV 26506-6825
    Phone: 304 293 2896
    Fax: 304 293 6699
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    Web page: http://rri.wvu.edu/research/working-papers/
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    Related research

    Keywords: income inequality; growth modeling; population change; per capita income;

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    1. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
    2. Mills, Edwin S. & Price, Richard, 1984. "Metropolitan suburbanization and central city problems," Journal of Urban Economics, Elsevier, vol. 15(1), pages 1-17, January.
    3. Hurd, Michael D, 1990. "Research on the Elderly: Economic Status, Retirement, and Consumption and Saving," Journal of Economic Literature, American Economic Association, vol. 28(2), pages 565-637, June.
    4. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
    5. Quinn, Joseph F, 1987. "The Economic Status of the Elderly: Beware of the Mean," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 33(1), pages 63-82, March.
    6. Keeler, Theodore E. & Ying, John S., 1988. "Measuring the benefits of a large public investment : The case of the U.S. Federal-aid highway system," Journal of Public Economics, Elsevier, vol. 36(1), pages 69-85, June.
    7. Persson, T. & Tabellini, G., 1993. "Is Inequality Harmful for Growth," Papers 537, Stockholm - International Economic Studies.
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