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Coming out of the 1960s, unearned income has expanded to comprise over one-third of total personal income. Transfer payments, commonly social safety net benefits, comprise the largest component. In Appalachia, where transfer payments have historically been relied upon at an elevated level, their importance has decreased as the region integrates into national economic processes and economic structures change. This integration has been uneven, with multiple theories and processes offered as explanation. As such, no complete understanding of the factors leading to a change in transfer payment income in Appalachia has yet been made. To inform this deficiency, this paper utilizes spatial regression techniques to examine the role of Appalachian disadvantage and economic integration in county level transfer payment income change in Appalachia, 1990–2010. Results indicate that trajectory stemming from local structures of Appalachian disadvantage drive transfer payment change more so than specific industries related to neo-classical growth. Further, results identify a spatial structure where factors of disadvantage (e.g. unemployment) produce stronger spillover effects than factors of advantage (e.g. manufacturing growth) in changing transfer payment reliance. A partir de la década de 1960, los ingresos no derivados del trabajo se han ampliado hasta abarcar más de un tercio de los ingresos personales totales. Los pagos de transferencia, comúnmente los beneficios de la red de seguridad social, constituyen el componente más grande. En Appalachia, donde históricamente los pagos de transferencia se han confiado a un nivel elevado, su importancia ha disminuido a medida que la región se integra en los procesos económicos nacionales y las estructuras económicas cambian. Esta integración ha sido desigual, con múltiples teorías y procesos ofrecidos como explicación. Como tal, aún no se ha realizado una comprensión completa de los factores que conducen a un cambio en los ingresos por pagos de transferencia en Appalachia. Para informar sobre esta deficiencia, este documento utiliza técnicas de regresión espacial para examinar el papel de la desventaja de los Apalaches y la integración económica en el cambio en los ingresos de pago por transferencia a nivel de condado en Appalachia, 1990–2010. Los resultados indican que la trayectoria que se deriva de las estructuras locales de la desventaja de los Apalaches impulsa el cambio de pago más que las industrias específicas relacionadas con el crecimiento neoclásico. Además, los resultados identifican una estructura espacial donde los factores de desventaja (por ejemplo, el desempleo) producen efectos de desbordamiento más fuertes que los factores de ventaja (por ejemplo, [End Page 213] el crecimiento de la manufactura) al cambiar la dependencia de los pagos por transferencia. [ABSTRACT FROM AUTHOR]

Coming out of neo-classical growth theory, convergence theory suggests that regional differences in income will decrease over time. Studied in a variety of frameworks, there is evidence that convergence occurs, though conditioned upon regional economic capacities and participation in the larger neo-classical economy. Within the United States, convergence evidence is present at the national and sub-national levels. Of particular interest in this process is Appalachia, a region understood to have taken a peripheral role to the larger neo-classical economy, and not subject to convergence. Recent work suggests the possibility of convergence and movement towards a neo-classical growth process, though the evidence is mixed and indirect. This paper tests for convergence in Appalachia and the influence of neo-classical and Appalachian-specific growth factors. Results indicate convergence and a movement of the Appalachian economy away from a core-periphery structure to a more neo-classical process largely driven by industrial structure and human capital. [ABSTRACT FROM AUTHOR]