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Convergence of Income across Pennsylvania Counties

Author

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  • David A. Latzko

    (Pennsylvania State University at York)

Abstract

The neoclassical growth model implies that if two economies have the same preferences and technology, the poorer country will tend to grow faster in per capita terms. The relatively homogeneous counties of Pennsylvania provide an excellent test of the model's convergence predictions. There is no evidence of absolute convergence of income levels among Pennsylvania counties. The divergence between the very highest and very lowest income counties is due to changes in relative county wages. I utilize a set of panel data to properly account for individual effects, and find a conditional convergence rate of 2 percent.

Suggested Citation

  • David A. Latzko, 2002. "Convergence of Income across Pennsylvania Counties," Eastern Economic Journal, Eastern Economic Association, vol. 28(4), pages 499-508, Fall.
    • Handle: RePEc:eej:eeconj:v:28:y:2002:i:4:p:499-508
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    References listed on IDEAS

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    2. Gyawali, Buddhi Raj & Fraser, Rory & Banerjee, Ban & Bukenya, James O., 2009. "Income Convergence and Growth in Alabama: Evidence from Sub-county Level Data," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46713, Southern Agricultural Economics Association.

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    More about this item

    Keywords

    Wage;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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