An Analysis of Regional Income Variation in the United States: 1969-2013

This paper investigates the variation of per capita personal income among counties within each state from 1969-2013. Department of Commerce BEA data and Department of Labor BLS data for 1969 to 2013 are analyzed. This study follows up on previous analysis of U.S. regional income variation by adjusting time series estimates for serial correction and using random effects models for panel data analysis. In addition, potential short-run disruption of a longer run trend is investigated by including an unemployment rate variable into the model. Results suggest that a general pattern of per capita income divergence has transpired in recent decades, contrary to conventional expectations of convergence.