Constructing Poverty Rankings For State Subregions: A Case Study Of North Carolina

John A Bishop,Lester A Zeager

doi:10.52324/001c.9192

Abstract

In recent years, economists with differing views on many income distribution issues have begun to call for a public policy aimed at reducing poverty, rather than income inequality per se. Studies of variations in income inequality among regions have appeared in economics journals for several decades, but less work has been devoted to regional poverty measurement. This paper brings together recent theoretical and statistical advances in poverty measurement and develops a methodology for studying variations in poverty across small regions using readily available data from the Census Bureau.

Highlights

In recent years, economists with differing views on many income distribution issues have begun to call for a public policy aimedatreducingpoverty, rather than income inequality~se
We present a methodology for studying variations in poverty across small regions using readily available data from the Census Bureau
The regional poverty rankings obtainedhere are notsensitive to the location ofthe poverty line within a reasonable range

Summary

Introduction

Economists with differing views on many income distribution issues have begun to call for a public policy aimedatreducingpoverty, rather than income inequality~se. Summary measures of poverty (and inequality) are often basedon sample data and are subject to sampling variability We address this issue by employing statistical tests for differences in income distributions developed by Beach and Davidson (1983), Bishop (1987), and Bishop, Formby, and Thistle (1989). Two levels of substate regions can be identified in the data set: the three major subregions (Mountain, Piedmont, and Coastal Plain) of North Carolina, and the Census county groups within the state.

Methodology

Findings

Conclusions