Sigma Convergence Versus Beta Convergence: Evidence from U.S. County-Level Data (revised version)

Andrew T. Young, University of Mississippi

Matthew J. Higgins, Georgia Institute of Technology

Daniel Levy, Bar-Ilan University

Abstract. In this paper we outline (i) why sigma-convergence may not accompany beta-convergence, (ii) discuss evidence of beta-convergence in the U.S., and (iii) use U.S. county-level data containing over 3,000 cross-sectional observations to demonstrate that sigma-convergence has not occurred at the county-level across the U.S., or within the vast majority of the individual U.S. states considered separately.

JEL Codes: O40, O11, O18, R11

Keywords: Sigma Convergence, Beta Convergence, Solow Growth Model, Speed of Convergence, U.S. County-Level Data, Income Distribution, Gini Coefficient, Equality