Replication Data for: How State Responses to Economic Crisis Shape Income Inequality and Financial Well-Being

This study examines how state government responses to economic crisis, in the form of unexpected changes in state fiscal policy, influence income inequality. State governments are vital actors in times of fiscal stress since nearly every state must make difficult policy decisions related taxes and spending to address budget deficits, both of which are policies that shape the income gap. Focusing on periods of fiscal stress is important for the study of state inequality since those with fewer resources are the most likely to experience the consequences of their state's fiscal response during these times. Using time-series cross-sectional data, this research demonstrates that income inequality increases when states respond to economic crisis by relying on unexpected spending cuts. These effects tend to persist even after initial economic downturns. Additionally, one individual-level implication of the aggregate relationship between state policy responses and inequality -- that people will be worse off financially when their states emphasize budget cuts in response to economic decline -- is assessed using several post-Great Recession surveys. The findings have implications for the future of inequality in the U.S. and provide potential paths for state fiscal reform.

本研究探讨了州政府以州级财政政策突发变动为形式的经济危机应对举措，对收入不平等的影响机制。在财政承压时期，州政府扮演着至关重要的角色：几乎所有州都需围绕税收与支出制定艰难的政策决策，以解决预算赤字问题，而这两类政策均会对收入差距产生塑造作用。聚焦财政承压时段对于州级不平等研究具有重要意义，因为资源匮乏群体在这类时期最易受到本州财政应对举措的影响。本研究利用时间序列横截面数据开展分析，结果表明：当各州通过实施突发的支出削减举措应对经济危机时，收入不平等程度会随之上升；且该效应往往会在初始经济衰退结束后仍持续存在。此外，本研究还借助大衰退后的多项调查数据，对州级政策应对与收入不平等之间的整体关联所带来的个体层面影响展开了评估——即当所在州为应对经济衰退而侧重预算削减举措时，民众的经济状况会愈发窘迫。本研究结论对美国收入不平等的未来走向具有参考价值，同时也为州级财政改革提供了可行路径。