Unequal Convergence: Evidence from Post-War US States

Ryoichi Sakano, John A. Bishop and John P. Formby

Working Papers from East Carolina University, Department of Economics

Abstract: Typically, the study of post-war convergence has primarily focused on convergence in per capita incomes. By investigating convergence at population class means we can characterize convergence as either "equal" or "unequal" depending upon whether the (inverse) income distribution functions are converging at the same rate up and down the income scale. Estimates for entire state income distributions reveal that the convergence process is unequal. The conditional mean incomes of families in the bottom decile are converging much more slowly than at other deciles. This is especially true for Southern states. Income distributions are converging most rapidly in deciles two and three.

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