This paper uses the Solow and Kuznets models to help explain the pattern and differences in economic growth and income distribution in four major regions within California. Using county-level data from 1969 to 1999, I estimated that statewide real per-capita personal income has diverged (become more unequal). However, after controlling for regional affects, statewide income divergence becomes statistically insignificant. On a continuum, the data suggest that on average, the Central, Northern, Southern, and Coastal regions have the least to most well endowed composition of resources. The corresponding spatial division of labor across California's regions results in income inequality. Regional development policies should be diversified and coordinated to insure long-term success and not be overly reliant on one best approach. Policies are more likely to fail if they deviate from the local context. Regional economic development depends more on a partnership of local policy-makers, industry, labor unions and community leaders who can work together towards common goals.

Rebecca M. Blank offers the first comprehensive analysis of an economic trend that has been reshaping the United States over the past three decades: rapidly rising income inequality. In clear language, she provides an overview of how and why the level and distribution of income and wealth has changed since 1979, sets this situation within its historical context, and investigates the forces that are driving it. Among other factors, Blank looks closely at changes within families, including women’s increasing participation in the work force. The book includes some surprising findings—for example, that per-person income has risen sharply among almost all social groups, even as income has become more unequally distributed. Looking toward the future, Blank suggests that while rising inequality will likely be with us for many decades to come, it is not an inevitable outcome. Her book considers what can be done to address this trend, and also explores the question: why should we be concerned about this phenomenon?