Abstract
This study focuses on four aspects of the inequality of average household income among the American states. First, we document change in the inequality of nominal average household income between 1979 and 1990. Second, we identify states contributing to the observed inequality. Third, we examine the pattern in state income convergence-divergence when spatial and temporal state price differentials are accounted for. Fourth we provide estimates of impacts of alternative income components on income inequality. We find that inequality in real income is smaller than that in nominal income. Also, we conclude that traditional income measures that exclude transfer payments and other types of income overstate inequality.
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Abdel-Ghany, M., Thoma, S.J. (2002). Distribution of Household Income in America: Effects of Source of Income, Inflation, and Cost of Living Differentials. In: Zumbo, B.D. (eds) Advances in Quality of Life Research 2001. Social Indicators Research Series, vol 17. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-9970-2_15
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DOI: https://doi.org/10.1007/978-94-015-9970-2_15
Publisher Name: Springer, Dordrecht
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