Income Inequality: Do Different Inequality Measures Show Different Impacts on Economic Growth, at the State Level? An Analysis of the State of New Jersey

Bertram Chukwudum Ifeanyi Okpokwasili


This paper investigates whether the use of different inequality measures is instrumental in determining impact on economic growth at the State level. We find that different measures show different levels of significance with respect to economic health. We study New Jersey income distribution and shares from 1964 to 2014, using graphs and statistics. The dual analyses approach and the use of different inequality measures enabled conclusions to be reached, that only one view and one inequality measure would have made difficult, if not misleading. New Jersey Real GDP/Capita (RGC) was going up, whether or not the inequality measure was getting better. Inequality had little or no effect on the direction of the RGC. Economic Growth is not a good measure of the effects of inequality.


Economic growth, gini coefficients, quintiles, real GDP/capita.

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