Abstract
This note investigates the spatial distribution of income inequality in the US over the period 1969 to 1999. Taking into account the methodological limitations of traditional convergence analysis, a non parametric approach is applied to examine the dynamics of the entire cross-sectional distribution. The study reveals the presence of a process of convergence in income inequality across the US states throughout the sample period, as a result of the evolution experienced by those sates located at both ends of the distribution in 1969. Nevertheless, the estimates performed suggest that this process will not continue indefinitely.
Notes
1 For an exception, see Benabou (Citation1996) and Ravallion (Citation2003).
2 Gaussian kernel functions were used, while the value of the smoothing parameter was selected following Silverman (Citation1986, p. 48).
3 For a formal definition of these instruments, see Durlauf and Quah (Citation1999).
4 Gaussian kernel functions were employed in the estimations, while the smoothing parameter was determined according to Silverman (Citation1986, p. 86).
5 The robustness of these findings was checked using a single 30-year transition. The results, which are available from the authors upon request, were in the two cases very similar.