The persistence of poverty in the modern American economy, with rates of poverty in some areas approaching those of less advanced economies, remains a central concern among policy makers. Therefore, in this study we use U.S. county-level data to explore potential explanations for the observed regional variation in the rates of poverty. The use of counties allows examination of both nonmetropolitan area and metropolitan area poverty. Factors considered include those that relate to both area economic performance and area demographic composition. Specific county economic factors examined include economic growth, industry restructuring, and labor market skills mismatches. Copyright 2000 Blackwell Publishers

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This study examines regional trends in state income inequality in the United States. Data for the 48 contiguous states are used to estimate separate cross-sectional equations of state income inequality for I960, 1970, 1980, and 1990. Thus, previous cross-sectional studies of state income inequality are updated with the addition of recent census data. Moreover, the model specified includes variables not previously examined, which reduces the possibility of omitted variable bias and provides a richer policy framework. State characteristics are identified that may explain the convergence of state income inequality both during earlier years and in recent years.

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