Income Inequality in the U.S.

Source: Jeremy Cohn, Regional Financial Review, Vol. 29 no. 6, February 2019
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In this article we build two models using two measures of income inequality to test possible explanations of the growing income inequality over the last four decades. State-level data provide a broad and rich dataset for this exercise. While inequality will continue to increase, there is good reason to think that it will do so at a more modest pace than in recent decades.