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Income Distribution Commons

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Full-Text Articles in Income Distribution

Making A Middle Class: Colleges And Cities In The Mountain West, Richard Reeves Jul 2019

Making A Middle Class: Colleges And Cities In The Mountain West, Richard Reeves

Brookings Mountain West Publications

A stronger middle class is important for the economic and political future of both cities and nations. Analyses focusing on the size of the middle class can be misleading, providing information on income inequality or temporary economic conditions. More important than the size of the middle class is the quality of life of the middle class. Higher education can serve students from middle-class backgrounds, helping them sustain a middle-class standard of living and rise up the economic ladder, as well as providing “on ramps” to the middle class for those from low-income backgrounds. We show that middle class wage earners …


Is Real Per Capita State Personal Income Stationary? New Nonlinear, Asymmetric Panel‐Data Evidence, Furkan Emirmahmutoglu, Rangan Gupta, Stephen M. Millter, Tolga Omay Jun 2019

Is Real Per Capita State Personal Income Stationary? New Nonlinear, Asymmetric Panel‐Data Evidence, Furkan Emirmahmutoglu, Rangan Gupta, Stephen M. Millter, Tolga Omay

Economics Faculty Publications

This paper re‐examines the stochastic properties of U.S. state real per capita personal income, using new panel unit‐root procedures. The new developments incorporate non‐linearity, asymmetry, and cross‐sectional correlation within panel‐data estimation. Including nonlinearity and asymmetry finds that 43 states exhibit stationary real per capita personal income whereas including only nonlinearity produces 42 states that exhibit stationarity. Stated differently, we find that two states exhibit nonstationary real per capita personal income when considering nonlinearity, asymmetry, and cross‐sectional dependence.