Abstract
No study has focused singularly on the role of the occupational mix for purposes of predicting areal income distribution. Hence, one objective of this study is to predict the shape of interstate income distributions—specifically, the income distribution of families—via occupational mix, and thereby give explicit notice to this human capital dimension. A second objective of this study is to use the occupational model to offer some empirical evidence on interregional racial differences vis-a-vis the income distribution.
Highlights
The economic literature of the past ten years or so has devoted substan tial attention to the many facets of personal income distribution
Gary Becker has defined a coefficient of discrimination to measure a "taste for discrimination" in money terms for different factors of production and employers, where it is assumed that the factors of production are productive.^ Using these aspects of the Becker framework and a white/nonwhite delineation of the occupational strata, the model looks at the extent to which regional differences in "taste for discrimination" in money terms have existed
The cases of interregional white/nonwhite income differentials which are attributable to differences in economic capacity, e.g., regional differ ences in quantity of education and scholastic achievement, are well documented and need not be repeated here.® the unexplained portion of the inter regional disparities in racial income differentials—^i.e., after correction for cap-^
Summary
The economic literature of the past ten years or so has devoted substan tial attention to the many facets of personal income distribution. () beyond the usual and necessary efforts to summarize, mea sure, and occasionally interpret the be-wildering varieties of statistical frequency distributions of income, some of the new studies attempt multivariate statisti cal analysis of 'causal' factors associated with size of individual income."^ One impressive, and perhaps the dominant, strain in these model developments has been the human capital theories which come directly from economic theory and theoretically, provide an explanation for the different shapes among income distributions." ,to the extent possible,the level of human capital, whether implicitly or explicitly specified, should be recognized in any model of income distribution.'' Human capital decisions of individuals can take many forms, such as educational expenditures and relocation decisions; as noted by Lester Thurow .
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