Work

Why Has Regional Income Convergence in the U.S. Declined?

Year: 2017

Type: report

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.

Source: National Bureau of Economic Research

DOI: 10.3386/w23609

Authors: Peter Ganong, Daniel Shoag

Institutions: National Bureau of Economic Research, University of Chicago, Harvard University

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, Decent work and economic growth

Open Access status: green

Funder: Michigan Diabetes Research Center, University of Michigan

OpenAlex ID: W4299834601

Cites: 57

Cited by: 123

Related to: 10