scholarly journals Unifying National Income Inequality and Regional Economic Divergence

2018 ◽  
Author(s):  
Robert Manduca

After more than a century of convergence, the economic fortunes of rich and poor regions of the United States have diverged dramatically since 1980. The richest cities now have per capita incomes almost 40% greater than the nation as a whole, while the poorest ones have incomes 25% smaller. In this paper I use counterfactual simulations based on Census microdata to understand the dynamics of regional divergence. I first show that regional divergence has largely resulted from the richest people and places pulling away from the rest of the country. I then estimate the relative contributions to regional divergence of two major socioeconomic trends of the last 40 years: the sorting of people across metro areas by income level and the national rise in income inequality. I show that the national rise in income inequality is sufficient on its own to account for more than half of the observed divergence across regions, while income sorting on its own accounts for less than a quarter. The major driver of regional economic divergence is national-level income dispersion that has exacerbated preexisting spatial inequalities.

Social Forces ◽  
2019 ◽  
Vol 98 (2) ◽  
pp. 622-648 ◽  
Author(s):  
Robert A Manduca

Abstract After more than a century of convergence, the economic fortunes of rich and poor regions of the United States have diverged dramatically over the last 40 years. Roughly a third of the US population now lives in metropolitan areas that are substantially richer or poorer than the nation as a whole, almost three times the proportion that did in 1980. In this paper I use counterfactual simulations based on Census microdata to understand the dynamics of regional divergence. I first show that regional divergence has primarily resulted from the richest people and places pulling away from the rest of the country. I then estimate the relative contributions to regional divergence of two major socioeconomic trends of recent decades: the sorting of people across metro areas by income level and the national rise in income inequality. I show that the national rise in income inequality is sufficient on its own to account for more than half of the observed divergence across regions, while income sorting on its own accounts for less than a quarter. The major driver of regional economic divergence is national-level income dispersion that has exacerbated preexisting spatial inequalities.


2015 ◽  
Vol 48 (4) ◽  
pp. 791-813 ◽  
Author(s):  
Mikel Norris

AbstractExternal political efficacy, the belief that government is responsive to the demands of its citizens, has been declining in the United States since the 1960s. However, scholars do not yet fully understand the reasons for its decline. Nor have they found suitable explanations for why it fluctuates within the electorate. Drawing on the growing literature on the effects of income inequality on public policy, I posit that increasing income inequality factors into the decline of external political efficacy. Using multilevel regression models accounting for individual and contextual factors, I find increasing state-level income inequality has a substantial negative effect on external political efficacy. It is greater than most state and national-level economic measures or individual-level variables on external political efficacy. These results have important implications both for research on income inequality and political participation and also for research on income inequality and distributional public policy.


2014 ◽  
Vol 129 (4) ◽  
pp. 1553-1623 ◽  
Author(s):  
Raj Chetty ◽  
Nathaniel Hendren ◽  
Patrick Kline ◽  
Emmanuel Saez

Abstract We use administrative records on the incomes of more than 40 million children and their parents to describe three features of intergenerational mobility in the United States. First, we characterize the joint distribution of parent and child income at the national level. The conditional expectation of child income given parent income is linear in percentile ranks. On average, a 10 percentile increase in parent income is associated with a 3.4 percentile increase in a child’s income. Second, intergenerational mobility varies substantially across areas within the United States. For example, the probability that a child reaches the top quintile of the national income distribution starting from a family in the bottom quintile is 4.4% in Charlotte but 12.9% in San Jose. Third, we explore the factors correlated with upward mobility. High mobility areas have (i) less residential segregation, (ii) less income inequality, (iii) better primary schools, (iv) greater social capital, and (v) greater family stability. Although our descriptive analysis does not identify the causal mechanisms that determine upward mobility, the publicly available statistics on intergenerational mobility developed here can facilitate research on such mechanisms.


2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
M Dierckens ◽  
D Weinberg ◽  
Y Huang ◽  
F Elgar ◽  
I Moor ◽  
...  

Abstract Background Previous research established a positive association between national income inequality and socioeconomic inequalities in adolescent health, but little is known about the extent to which national level inequalities in accumulated financial resources (i.e. wealth) are associated with these health inequalities. Therefore, we examined the association between national wealth inequality and income inequality and socioeconomic inequalities in adolescent mental wellbeing. Methods Data were from 17 countries participating in three successive waves (2010, 2014 and 2018) of the cross-sectional Health Behaviour in School-aged Children (HBSC) study. We combined individual-level data on adolescents' life satisfaction, psychological and somatic symptoms and socioeconomic status (SES) with country-level data on income and wealth inequality (n = 244771). We performed time-series analysis on a pooled sample of 48 country/year groups. Results Higher levels of national wealth inequality were associated with fewer average psychological and somatic symptoms, while higher levels of national income inequality were associated with more psychological and somatic symptoms. No associations between either national wealth inequality or income inequality and life satisfaction were found. Smaller differences in somatic symptoms between higher and lower SES groups were found in countries with higher levels of national wealth inequality. In contrast, larger differences in psychological symptoms and life satisfaction (but not somatic symptoms) between higher and lower SES groups were found in countries with higher levels of national income inequality. Conclusions Although both national wealth and income inequality are associated with (socioeconomic inequalities in) adolescent mental wellbeing, associations are in opposite directions. Further research is warranted to gain better understanding in the role of national wealth inequality on (socioeconomic inequalities in) adolescent health. Key messages This is one of the first studies to examine if socioeconomic inequalities in adolescent mental wellbeing are associated with national wealth inequality independently from national income inequality. Opposing effects of national wealth inequality and income inequality on socioeconomic inequalities in adolescents’ mental wellbeing warrant further research before policy recommendations can be made.


Author(s):  
S. Horbachenko ◽  
L. Syvolap ◽  
S. Nikitchenko ◽  
А. Revenko ◽  
Y. Riabeka

Abstract. The development of the world economy, despite the barriers, is quite dynamic. The drivers of growth and stabilization of national economies at present are not raw materials industries, nor even industrial enterprises, but companies that generate innovative products. The enterprises that are most dynamically developing and producing innovations include enterprises in the field of medicine and IT. The updated list of S&P 500 companies showed that 50% of all the most innovative companies in the world are registered in the United States. Despite the pandemic challenges, some economies have not suffered significant losses due to quarantine restrictions. Since the level of innovative development of the national economy is a total (integrated) expression of the whole complex of innovative products created by companies of such a country, the initial elements are the creation of favorable regulatory and state support for developers of innovative products, tax benefits and incentives, export support for innovative products and so on. In order to assess these achievements, international organizations have developed appropriate methods for measuring the index of innovation development, namely: Global Innovation Index (GII) (WIPO and Cornell University), Bloomberg Innovation Index (BII) (Bloomberg), Global Competitiveness Index (World Economic Forum), World Competitiveness Index (IMD World Competitiveness Center). Studies have shown that against the background of the flagship countries (Switzerland, Sweden, Singapore, USA, Germany, China, etc.), Ukraine is constantly losing its position in the rankings, which is an objective reason for deindustrialization of the economy and denationalization and privatization of strategic enterprises of national importance. Today, Ukraine ranks 45th (GII) and 56th (BII), respectively, and belongs to the group of countries with below-average incomes per capita. At the same time, Ukraine ranks 71st in terms of innovation spending and 37th in terms of innovation development (profit). The development of Ukraine’s innovation component, according to experts and specialists, is ahead of forecast values. Keywords: national economy, innovations, innovative development, innovative products, innovative companies, indices of innovative development, gross national income per capita. JEL Classification O30 Formulas: 0; fig.: 1; tabl.: 4; bibl.: 19.


2016 ◽  
Vol 12 (6) ◽  
pp. 2029-2036
Author(s):  
Walker Talton ◽  
Hanna Lindner ◽  
Michael J. Rovito

Ongoing trends have revealed an inverse relationship between population growth and the number of practicing urologists in the U.S. per capita, which threatens urologic care accessibility. Furthermore, different regions in the United States may be more negatively impacted due to higher population growth rates. The state of Florida witnessed over a 10% higher growth rate compared with national figures between 2000 and 2015. Coupled with data suggesting that since the 1980s, the number of U.S. urologists per capita has been decreasing, the foreseeable future presents many challenges regarding health equity and accessibility. This secondary analysis aimed to investigate the implications of forecasted urologic care decline within a growing population and how it can contribute to adverse male health outcomes. National- and state-level data were collected to calculate a series of urologic care ratios as defined by the number of urologists compared with population sizes. Analyses revealed that national-level urologic care ratios and prostate cancer incidence rates have a significant positive relationship, lending to the conclusion that with fewer urologists, the number of cases identified will decrease. State-level forecasted models indicated that the urologic care ratio will decrease approximately 30% in Florida from 6.23 per 100,000 in 2010 to 4.39 per 100,000 by the year 2030. As growth in demand for urologic care will increase in the next decade, a dire public health scenario is potentially unfolding. Future implications of undiagnosed prostate cancer due to the lack of access will drive an increase in mortality rates as well as health equity concerns for men.


2020 ◽  
pp. 106591292092231 ◽  
Author(s):  
Jeffrey W. Ladewig

Over the past twenty years, there has been much discussion about two of the most important recent trends in American politics: the increase in income inequality in the United States and the increase in ideological and partisan polarization, particularly in the U.S. House. These two national-level trends are commonly thought to be positively related. But, there are few tested theoretical connections between them, and it is potentially problematic to infer individual-level behavior from these aggregate-level trends. In fact, an examination of the literature reveals, at least, three different theoretical outcomes for district-level income inequality on voter and congressional ideological positions. I explore these district-level theoretical and empirical possibilities as well as test them over decades with three different measures of income inequality. I argue and demonstrate that higher district levels of income inequality are related to higher levels of ideological liberalism in the U.S. House. This stands in contrast to the national-level trends, but it tracks closely to traditional understandings of congressional behavior.


2013 ◽  
Vol 10 (7) ◽  
pp. 1032-1038 ◽  
Author(s):  
Stephanie B. Jilcott Pitts ◽  
Michael B. Edwards ◽  
Justin B. Moore ◽  
Kindal A. Shores ◽  
Katrina Drowatzky DuBose ◽  
...  

Background:Little is known about the associations between natural amenities, recreation facility density, and obesity, at a national level. Therefore, the purpose of this paper was to examine associations between county-level natural amenities, density of recreation facilities, and obesity prevalence among United States counties.Methods:Data were obtained from a compilation of sources within the United States Department of Agriculture Economic Research Service Food Environment Atlas. Independent variables of interest were the natural amenities scale and recreation facilities per capita. The dependent variable was county-level obesity prevalence. Potential covariates included a measure of county-level percent Black residents, percent Hispanic residents, median age, and median household income. All models were stratified by population loss, persistent poverty, and metro status. Multilevel linear regression models were used to examine the association between obesity and natural amenities and recreation facilities, with “state” as a random effects second level variable.Results:There were statistically significant negative associations between percent obesity and 1) natural amenities and 2) recreation facilities per capita.Conclusions:Future research should examine environmental and policy changes to increase recreation facilities and enhance accessible natural amenities to decrease obesity rates.


Author(s):  
Janet L. Smith ◽  
Zafer Sonmez ◽  
Nicholas Zettel

AbstractIncome inequality in the United States has been growing since the 1980s and is particularly noticeable in large urban areas like the Chicago metro region. While not as high as New York or Los Angeles, the Gini Coefficient for the Chicago metro area (.48) was the same as the United States in 2015 but rising at a faster rate, suggesting it will surpass the US national level in 2020. This chapter examines the Chicago region’s growing income inequality since 1980 using US Census data collected in 1990, 2000, 2010, and 2015, focusing on where people live based on occupation as well as income. When mapped out, the data shows a city and region that is becoming more segregated by occupation and income as it becomes both richer and poorer. A result is a shrinking number of middle-class and mixed neighbourhoods. The resulting patterns of socioeconomic spatial segregation also align with patterns of racial/ethnic segregation attributed to historical housing development and market segmentation, as well as recent efforts to advance Chicago as a global city through tourism and real estate development.


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