This study examines regional trends in state income inequality in the
United States. Data for the 48 contiguous states are used to estimate
separate cross-sectional equations of state income inequality for 1960
, 1970, 1980, and 1990. Thus, previous cross-sectional studies of stat
e income inequality are updated with the addition of recent census dat
a. Moreover, the model specified includes variables not previously exa
mined, which reduces the possibility of omitted variable bias and prov
ides a richer policy framework. State characteristics are identified t
hat may explain the convergence of state income inequality both during
earlier years and in recent years.