Evaluating the Convergence of Incomes in Pennsylvania, 1980-2018: Did the Incomes in Pennsylvania Converge?

Authors

Yaya Sissoko, Indiana University of Pennsylvania - Main CampusFollow
BRIAN SLOBODAFollow
Rubens da Silva, Federal University of Pernambuco. BrazilFollow

Abstract

This paper analyzed the recent change in both per capita earnings from employment and per capita income (including that from transfers and non-earnings sources) by Pennsylvania’s counties between 1980 and 2018, inclusive. Then, we also divided the period into the following five time periods for additional analysis: 1980-1990, 1990-2000, 2000-2010, and 2010-2018. Absolute convergence seems to have occurred among the counties in Pennsylvania that may be attributed to the gradual heterogenization of the regional economies. This result may modify some of the conclusions drawn in the recent literature regarding the mechanisms that have generated convergence in their regions. We also examined the β-convergence hypothesis using the spatial error Durbin Models (SDEM) by incorporating the sector and control variables. The rate of β-convergence was not rapid for the Per Capita Net Income and Per Capita Net Earnings.

Recommended Citation

Sissoko, Yaya; SLOBODA, BRIAN; and Silva, Rubens da (2022) "Evaluating the Convergence of Incomes in Pennsylvania, 1980-2018: Did the Incomes in Pennsylvania Converge?," Pennsylvania Economic Review: Vol. 29: No. 2, Article 6.
DOI: https://doi.org/10.65193/3067-8080.1047