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Trends in US Spatial Inequality: Concentrating Affluence and a Democratization of Poverty

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  • Cecile Gaubert
  • Patrick Kline
  • Damián Vergara
  • Danny Yagan

Abstract

We use Bureau of Economic Analysis, census, and Current Population Survey data to study trends in income inequality across US states and counties from 1960–2019. Both states and counties have diverged in terms of per capita pretax incomes since the late 1990s, with transfers serving to dampen this divergence. County incomes have been diverging since the late 1970s. These trends in mean income mask opposing patterns among top- and bottom-income quantiles. Top incomes have diverged markedly across states since the late 1970s. In contrast, bottom-income quantiles and poverty rates have converged across areas in recent decades.

Suggested Citation

  • Cecile Gaubert & Patrick Kline & Damián Vergara & Danny Yagan, 2021. "Trends in US Spatial Inequality: Concentrating Affluence and a Democratization of Poverty," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 520-525, May.
  • Handle: RePEc:aea:apandp:v:111:y:2021:p:520-25
    DOI: 10.1257/pandp.20211075
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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