Since the late 1970s, income inequality has increased throughout the American states. In order to get a deeper understanding of this phenomenon, the researcher assesses the relative contributions of a variety of economic, social, and political factors to the rise in state-level income inequality in the United States. Second, this research examines whether the national trend of rising inequality is a result of nationwide changes or if different states have taken unique causal paths to higher levels of income inequality. The researcher is using U.S. Census Bureau Current Population Survey (CPS) data to generate a variety of annual state-level measures of both earnings and household income inequality between 1970 and 2000. In order to explore trends within, and the causes of, rising income inequality these measures are subjected to a variety of statistical analyses, spatial econometrics, and Qualitative Comparative Analysis (QCA). The primary contribution to sociological knowledge within this research lies in its potential to expand our understanding of the causes of rising income inequality. A major goal of this research is to contribute to the development of a more coherent framework for understanding the recent upswing in income inequality by synthesizing a variety of explanations stemming from different intellectual perspectives. Additionally, the researcher hopes to do this while addressing a number of theoretical and methodological shortcomings of previous research on this issue. Obtaining a deeper understanding of the origins of rising income inequality may have broader impacts as it has been demonstrated that income inequality influences rates of economic growth, health, crime, and political conflict. The inequality measures generated in this analysis will be made publicly available online, providing the opportunity for further work on the causes and implications of rising income inequality. Ideally, this research could provide guidance for policy-makers and advocacy groups concerned with the recent rise in income inequality and its consequences. A clear understanding of the factors driving rising inequality, and the insight that relevant factors may not be identical in all regions or over time, is a critical first step to engaging in an informed discussion of the different types of policies that might be pursued in order to lower levels of inequality and the social problems, such as poverty, that are synonymous with high levels of inequality.
