Abstract
The growth pole theory offers one explanation for observable patterns of regional development, including income inequality. This paper examines income inequality within a growth pole context testing whether growth poles are a necessary or merely sufficient condition for regional development.
Highlights
The relationship between income inequality and regional development has been examined by Kuznets (1955, 1963, 1973), Williamson (1965, 1980), Rice and Sale (1975), and Gunther and Leathers (1975)
There is a degree of con sistency between the minimum value of the Gini coefficient for each equation and the results identified by Amos
The SMSA data base is closer in structure to heterogeneous nations and states than the substate data base
Summary
The relationship between income inequality and regional (national) development has been examined by Kuznets (1955, 1963, 1973), Williamson (1965, 1980), Rice and Sale (1975), and Gunther and Leathers (1975). Growth pole theory explains the inverted-U pattern (increase-decrease) of both personal income inequality and regional income variation. The inverted-U pattern is supported if income inequality decreases with higher levels of development If this pattern is identified upon analysis of ur· ban areas exclusively, with no upturn evi dent, it indicates secondary growth poles are necessary to explain increased income inequality at the state level. Since the United States is to the right of D1, an indication of increased ine quality at higher levels of development supports this hypothesis If this pattern is identified for various substate regions, it indicates secondary growth poles are not necessary to explain increased income inequality. States have a wide range of variation in their levels of development, with as much cross sectional variation in the development among states in 1970 as for single states in re cent years of data availability
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