Variation in State Income Inequality: 1960-1990

This study examines regional trends in state income inequality in the United States. Data for the 48 contiguous states are used to estimate separate cross-sectional equations of state income inequality for I960, 1970, 1980, and 1990. Thus, previous cross-sectional studies of state income inequality are updated with the addition of recent census data. Moreover, the model specified includes variables not previously examined, which reduces the possibility of omitted variable bias and provides a richer policy framework. State characteristics are identified that may explain the convergence of state income inequality both during earlier years and in recent years.