2.3.2. The New Data Set is Used for Convergence Analyses

The analysis based on the panel data set is twofold. First, the data relative to the upper decile yield measures of inequality between and within states. These inequality indicators and the growth rates of state i’s average income are used in regressions to study the β and σ convergence (see Chapter 5). Second, the remaining 90 percent of the distribution is not left ignored as lower measures (bottom decile, first 25 percent, median, first 75 percent, and upper decile) are estimated to analyze the convergence (or divergence) of income groups within the income distribution itself.