Income Migration and Income Convergence across U.S. States, 1995–2010

Abstract

In this paper we examine how internal migration redistributes earned income across U.S. states between 1995 and 2010. We examine interregional income flows by first describing the movement of earned income between U.S. states. Second, we examine the effect of income migration on spatial patterns of income inequality. The question we ask is, “does migration increase or decrease convergence income across U.S. States?” A primary contribution of this paper is that instead of using only 1 year of income migration data to explore these issues, we use yearly data from the first year the Internal Revenue Service (IRS) data started including income (1995/1996) up to the most current data available (2009/2010). Results indicate that income convergence/divergence across states varies by whether or not there is general economic expansion or contraction. Nevertheless, some high‐amenity states continually attract high‐income households.

US regional population growth 2000–2010: Natural amenities or urban agglomeration?

“…The strong productivity effect is consistent with productive firms or individuals with unobserved highly productive skills (McGranahan and Wojan ; Lee ) disproportionately sorting in high amenity areas. Using Internal Revenue Service migration data for 1995/1996 to 2009/2010, Shumway and Otterstrom (forthcoming) report higher rates of in‐migration of high‐income households to high‐amenity areas, where higher incomes may reflect measured higher levels of education and unmeasured abilities or entrepreneurial proclivities. Only for non‐metropolitan areas, are the innovations in household amenity demand the (slightly) largest positive innovation for the top amenity tier areas.…”

The relationship between China's income inequality and transport infrastructure, economic growth, and carbon emissions

“…Scholars have devoted increasing attention to questions about reducing income inequality that is one of the key goals to achieve humankind's sustainable development. Unfortunately, income inequality has increased dramatically since the 1980s worldwide (Zucman, 2019), which even exists in several major countries, such as the United States, China, France, and the United Kingdom (Alvaredo et al., 2017; Dorling, 2015; Shumway & Otterstrom, 2015). Darvas (2019) also believed that income inequality has increased in Asian developing countries, including China.…”

The average effectiveness of local migration exchanges

“…Pierce (2015) describes the data from the perspective of the IRS. DeWaard, Hauer, et al (2020) note a number of academic studies that have made use of the pre‐2012 data, and these include work on describing the migration system and flows (Ambinakudige & Parisi, 2017; DeWaard et al, 2016; Henrie & Plane, 2008; McHugh & Gober, 1992; Molloy et al, 2011; Plane, 1987; Plane et al, 2005; Shumway & Otterstrom, 2010, 2015), as well as the effects of economic conditions (Coomes & Hoyt, 2008; Vias, 2010) and environmental and climate change (Curtis et al, 2020, 2015; DeWaard et al, 2016; Fussell et al, 2014; Hauer, 2017; Shumway et al, 2014) on migration. Charyyev and Gunes (2019), Golding and Winkler (2020), and Liu et al (2019) have also recently used the IRS county level data to study migration.…”