Decomposing US regional income inequality from 1969 to 2009

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5305_Doran_and_Jordan_AEL.pdf(117.86 KB)
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Date
2015-11-16
Authors
Doran, Justin
Jordan, Declan
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Taylor & Francis
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Abstract
This article analyses changes in levels and composition of income inequality among US counties from 1969 to 2009. It also decomposes inequality using the Theil coefficient into between-State and within-State inequality. The article finds that income inequality has increased in the period studied with between-State inequality decreasing and within-State inequality increasing. We subsequently decompose income inequality into the proportion arising from differences in productivity and employmentâ population ratios across counties. The results suggest that inequality arising from differentials in labour productivity has fallen over the period studied while those arising from employmentâ population ratio differences have increased.
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Keywords
Regional convergence , Theil , Inequality , Decomposition
Citation
Doran, J. and Jordan, D. (2016) 'Decomposing US regional income inequality from 1969 to 2009', Applied Economics Letters, 23(11), pp. 781-784. doi: 10.1080/13504851.2015.1109030
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© 2015 Taylor & Francis. This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics Letters on 16/11/2015, available online: http://www.tandfonline.com/ 10.1080/13504851.2015.1109030