The history of the Pennsylvania economy since 1970 can be summarized in 3 propositions. First, while the state has experienced significant economic growth over the period at a rate close to that of the national economy, Pennsylvania has experienced a decline relative to neighboring states. This relative decline is due to the state's unfavorable wage structure. Second, per capita incomes have diverged across Pennsylvania counties. The handful of high-income counties in Pennsylvania have favorable wages while the counties with incomes below the state average, although they have employment mixes comparable to the overall state mix, tend to have workers who receive low wages relative to the state industry average. And third, the state's economy has become less diversified and more like the national economy.