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On the Stability of the Interstates Income Inequality Function: The U.S. 1950-1980

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  • Fishelson, Gideon

Abstract

In this study we explain the cross section variability of intrastates income inequality which is measured by the Gird Index. The explanatory variables are the conventional ones which represent sociodemographic factors and the variance of human capital. The latter is measured by the Gini Index of years of school completed by the population 25 years and older. We estimate the model for four cross sections 1950, 1960, 1970 and 1980. We found that correcting for heteroskedasticity which is generated by the state and year effects on the variance of the random error improves the results significantly.

Suggested Citation

  • Fishelson, Gideon, 1990. "On the Stability of the Interstates Income Inequality Function: The U.S. 1950-1980," Foerder Institute for Economic Research Working Papers 275495, Tel-Aviv University > Foerder Institute for Economic Research.
    • Handle: RePEc:ags:isfiwp:275495
    DOI: 10.22004/ag.econ.275495
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    References listed on IDEAS

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    1. Frank A. Cowell, 1980. "On the Structure of Additive Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(3), pages 521-531.
    2. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    3. Braun, Denny, 1988. "Multiple Measurements of U.S. Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 398-405, August.
    4. Champernowne, D G, 1974. "A Comparison of Measures of Inequality of Income Distribution," Economic Journal, Royal Economic Society, vol. 84(336), pages 787-816, December.
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