State Per-Capita Income Change Since 1950

State Per-Capita Income Change Since 1950

by William Crown, Leonard F. Wheat
     
 

ISBN-10: 0313296944

ISBN-13: 9780313296949

Pub. Date: 11/20/1995

Publisher: ABC-CLIO, Incorporated

This book refutes prevailing theories that attribute post-1950 state per capita income convergence to (1) neo-classical adjustment mechanisms, (2) institutional sclerosis, and (3) southern industrialization. Wheat and Crown argue that southern income was low because of slavery's legacy—sharecropping, agricultural dependence, low urbanization, poor education,

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Overview

This book refutes prevailing theories that attribute post-1950 state per capita income convergence to (1) neo-classical adjustment mechanisms, (2) institutional sclerosis, and (3) southern industrialization. Wheat and Crown argue that southern income was low because of slavery's legacy—sharecropping, agricultural dependence, low urbanization, poor education, high Black population percentages, and low wage rates. The legacy's dominant feature was the sharecropper-tenant farmer system, which replaced slavery. Sharecropping was the foundation of southern poverty. Sharecropping's collapse, beginning around 1950, affected all of the other features of slavery's legacy. For example, millions of sharecroppers out-migrated from the South, shifting poverty to the North and lowering the South's Black percentage. This out-migration, white in-migration, and the civil rights movement jointly raised educational attainment in the South, further boosting southern income. Southern industrialization had only a marginally significant effect. In 1950's high income region, the West, the transport cost element in the price of manufactured goods shrank because of (1) transportation improvements and (2) rapid manufacturing growth, which reduced the need for long distance imports from the Manufacturing Belt. The resulting decline in the West's relative cost of living led to wage adjustments. Consequently, the West—despite having the highest manufacturing growth rates—had the nation's lowest per-capita income growth rates. Agricultural decline and educational gains stimulated income growth in the Plains. Nationally, per-capita employment gains were a strong influence.

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Product Details

ISBN-13:
9780313296949
Publisher:
ABC-CLIO, Incorporated
Publication date:
11/20/1995
Series:
Contributions in Economics and Economic History Series, #16
Pages:
198
Product dimensions:
6.14(w) x 9.21(h) x 0.50(d)
Lexile:
1290L (what's this?)

Table of Contents

Introduction

Empirical Studies Explaining Income

Theoretical Explanations of Income Convergence

Hypotheses and Preliminary Evidence

Methodology, Variables, and Correlation Findings

Regression Analysis

Further Analysis, Summary, and Conclusions

Index

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