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Title: Is Income Growth in the United States Pro-Poor? A State Level Analysis

Citation Type: Miscellaneous

Publication Year: 2012

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Abstract: The impact of economic growth on poverty varies greatly across regions and over time. In this paper, we use data from the Current Population Survey (CPS) and a to-two-point-in-time decomposition proposed by Datt and Ravallion (1992) and Kraay (2006) to assess the extent of the impacts of income growth and income distribution on poverty in each state in the United States. This study finds that between 1992 and 2011, the growth component was the major source of poverty reduction across U.S. states. This result is not sensitive to the measure of poverty (Headcount, Poverty Gap, or Squared Poverty Gap). Regression analysis shows that U.S. states with a larger share of its population with higher education have experienced larger changes in headcount poverty due to income growth rather than changes in income distribution. Export orientation is also found to positively affect the growth component.

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Authors: Kim, Jongsung; Tebaldi, Edinaldo

Publisher: Bryant University

Data Collections: IPUMS CPS

Topics: Other

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