Income Migration and Income Convergence across U . S . States, 1995–2010

In this paper we examine how internal migration redistributes earned income across U . S . states between 1995 and 2010. We examine interregional income flows by first describing the movement of earned income between U . S . states. Second, we examine the effect of income migration on spatial patterns of income inequality. The question we ask is, “does migration increase or decrease convergence income across U . S . States?” A primary contribution of this paper is that instead of using only 1 year of income migration data to explore these issues, we use yearly data from the first year the Internal Revenue Service (IRS) data started including income (1995/1996) up to the most current data available (2009/2010). Results indicate that income convergence/divergence across states varies by whether or not there is general economic expansion or contraction. Nevertheless, some high‐amenity states continually attract high‐income households.