Full Citation

Title: Why has regional income convergence in the U.S. declined?

Citation Type: Journal Article

Publication Year: 2017

ISBN:

ISSN:

DOI: https://doi.org/10.1016/j.jue.2017.07.002

NSFID:

PMCID:

PMID:

Abstract: The past thirty years have seen a dramatic decline in the rate of income convergence across states and in population flows to high-income places. These changes coincide with a disproportionate increase in housing prices in high-income places, a divergence in the skill-specific returns to moving to high-income places, and a redirection of low-skill migration away from high-income places. We develop a model in which rising housing prices in high-income areas deter low-skill migration and slow income convergence. Using a new panel measure of housing supply regulations, we demonstrate the importance of this channel in the data.

Url: https://www.sciencedirect.com/science/article/pii/S0094119017300591?via%3Dihub

User Submitted?: No

Authors: Ganong, Peter; Shoag, Daniel

Periodical (Full): Journal of Urban Economics

Issue:

Volume: 102

Pages: 76-90

Data Collections: IPUMS USA

Topics: Housing and Segregation, Migration and Immigration, Poverty and Welfare

Countries: