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

Yohannes Hailu () and Yohannes Hailu ()
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Yohannes Hailu: Division of Resource Management, West Virginia University
Yohannes Hailu: Division of Resource Management, West Virginia University

Working Papers from Regional Research Institute, West Virginia University

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.

Keywords: income inequality; growth modeling; population change; per capita income (search for similar items in EconPapers)
JEL-codes: Q56 R11 R12 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2005
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:rri:wpaper:2005wp02

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