Is Income Growth in the United States Pro-Poor? A State-Level Analysis

Edinaldo Tebaldi and Jongsung Kim ()
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Jongsung Kim: Department of Economics, Bryant University, 1150 Douglas Pike, Suite H-229, Smithfield, RI 02917, USA.

Eastern Economic Journal, 2015, vol. 41, issue 2, 272 pages

Abstract: This study uses the Current Population Survey and a decomposition method proposed by Datt and Ravallion to assess the impacts of income growth and income distribution on poverty across states in the United States. It finds that between 1992 and 2011 growth of income, rather than changes in income distribution, was the major source of poverty reduction across US states. The empirical analysis also shows that there is asymmetrical impact on poverty — via both income distribution and income growth — during recessions and economic expansions: poor people are hit harder during recessions and benefit less during economic booms.

Date: 2015
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