Geographic variation in change in income inequality among US states, 1970–1990

Abstract.

Income inequality in the United States has increased greatly over the last 25 years. This paper examines geographic variation across the states in income inequality from 1970 to 1990 for family and for non-family households. Richer and larger metropolitan states, which had less inequality in 1970, became far more unequal, while many less metropolitan, poorer states in 1970, changed less. Associated with greater inequality or increase in inequality were economic restructuring (low wage versus high end services), surplus labor (babyboom entry, immigration), deregulation and tax changes, spatial polarization within metropolitan areas, family instability and higher shares of proprietary income; and with lesser inequality (or less change) manufacturing growth, higher (female) labor force participation and metro-politan growth (as in the South and the Plains).