Income Distribution Commons^™

On Persistent Poverty In A Rich Country, T.M. Tonmoy Islam, Jenny Minier, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

We examine differences in income within the U.S., and the regions of persistent poverty that have arisen, using a newly assembled dataset of counties that links historical 19th century Census data with contemporaneous data. The data, along with an augmented human capital growth model, permit us to identify the roles of contemporaneous differences in aggregate production technologies and factor endowments, in conjunction with the historical roles of institutions, culture, geography, and human capital. We allow for possible cross-county factor mobility via a correlated random effects GMM estimator that identifies simultaneously the coefficients on time varying and time-invariant determinants of income. …