The Evolution of U.s. Regional Inequality: a Mixture Model Exploratory Approach
نویسنده
چکیده
This paper studies the emergence of convergence clubs in the United States since the 1980s. The finite mixture normal model is used to identify the clubs based on the per capita personal income dataset for 700 U.S. labor market areas from 1969 to 2009. The results reveal that the collection of high income areas, termed the "rich places club," was formed in the 1980s, and the share of the rich places club stabilized at around 10-12% of total labor market areas for the 1990s and 2000s. We also find that the gap between the rich places club and the "everywhere else club" has been increasing since the 1990s.
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