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Explaining Interstate Variation in Income Inequality

Author

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  • Bishop, John A
  • Formby, John P
  • Thistle, Paul D

Abstract

This paper investigates interstate variation in income inequality. By avoiding inequality indices and focusing directly on the Lorenz curve, the authors provide a more general explanation of the differences in inequality. They find that mean family income, the standard deviation of years of schooling, per capita educational expenditure, and property income are robust predictors of inequality. Of particular interest is their finding that, ceteris paribus, higher per capita education expenditures tend to be associated with states that have income inequality which is greater than the U.S. average. Copyright 1992 by MIT Press.

Suggested Citation

  • 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 553-557, August.
  • Handle: RePEc:tpr:restat:v:74:y:1992:i:3:p:553-57
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    Cited by:

    1. Yihua Yu, 2010. "Determinants of variations in state per capita personal income: a panel data approach," Applied Economics Letters, Taylor & Francis Journals, vol. 17(3), pages 235-239, February.
    2. de Sousa, Semoa C.B. & Gebremedhin, Tesfa G. & Smith, Dennis K. & Colyer, Dale, 2001. "An Economic Analysis Of The Relationship Of Poverty And Income Inequality In Rural West Virginia," 2001 Annual meeting, August 5-8, Chicago, IL 20536, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Fitoussi, Jean-Paul & Van Haeperen, Béatrice, 1998. "Inégalités de revenus, marchés du travail et politique de transferts. Comparaison internationale et décomposition par sources de revenus," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1998027, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. Richard Morrill, 2000. "Geographic variation in change in income inequality among US states, 1970-1990," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(1), pages 109-130.
    5. Partridge, Mark D. & Rickman, Dan S. & Levernier, William, 1996. "Trends in U.S. income inequality: Evidence from a panel of states," The Quarterly Review of Economics and Finance, Elsevier, vol. 36(1), pages 17-37.
    6. Cohen-Zada, Danny & Justman, Moshe, 2003. "The political economy of school choice: linking theory and evidence," Journal of Urban Economics, Elsevier, vol. 54(2), pages 277-308, September.
    7. El-Osta, Hisham S. & Morehart, Mitchell J., 2009. "Welfare Decomposition in the Context of the Life Cycle of Farm Operators: What Does a National Survey Reveal?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), October.
    8. Bishop, John A. & Chiou, Jong-Rong, 2004. "Economic transformation and earnings inequality in China and Taiwan," Journal of Asian Economics, Elsevier, vol. 15(3), pages 549-562, June.
    9. Rupasingha, Anil & Goetz, Stephan J. & Freshwater, David, 2006. "The production of social capital in US counties," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 83-101, February.
    10. repec:spr:scient:v:58:y:2003:i:2:d:10.1023_a:1026292711921 is not listed on IDEAS
    11. Rupasingha, Anil & Goetz, Stephan J., 2007. "Social and political forces as determinants of poverty: A spatial analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(4), pages 650-671, August.
    12. Desousa-Brown, Semoa & Gebremedhin, Tesfa G., 2004. "An Empirical Analysis Of Poverty And Income Inequality In West Virginia," 2004 Annual meeting, August 1-4, Denver, CO 20223, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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