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This paper proposes an analytical framework describing how initial capacity and resistance variability in parallel-connected battery cells may inflict additional variability or reduce variability while the cells age. We derive closed-form equations for current and SOC imbalance dynamics within a charge or discharge cycle. These dynamics are represented by a first-order equivalent circuit model and validated against experimental data. To demonstrate how current and state of charge (SOC) imbalance leads to cell degradation, we developed a successive update scheme in which the intercycle imbalance dynamics update the intracycle degradation dynamics, and vice versa. Using this framework, we demonstrate that current imbalance can cause convergent degradation trajectories, consistent with previous reports. However, we also demonstrate that different degradation assumptions, such as those associated with SOC imbalance, may cause divergent degradation. We finally highlight the role of different cell chemistries, including different OCV function nonlinearities, on system behavior, and derive analytical bounds on the SOC imbalance using Lyapunov analysis. [ABSTRACT FROM AUTHOR]