The US structural transformation and regional convergence: Racial heterogeneity

Structural transformation and regional convergence in US income are both longstanding trends. Caselli and Coleman (2001) documented that 60% of regional convergence between the US South and North from 1940 to 1990 was due to structural transformation. Our replication confirms these robust findings. Examining black and white populations separately, we find the magnitude of regional income convergence was much larger for the black workers, and that structural transformation explains most regional income convergence for white workers but only 30% for black workers. Extending the analysis until 2020, however, we observe income convergence among black workers and divergence among white workers. Structural transformation's role in income convergence or divergence from 1990 to 2020 is negligible.