Changes in Income Inequality Within U.S. Metropolitan Areas


Book Description

Based on data from the 5 percent Public Use Micro Samples of the 1980 and 1990 U.S. censuses, discusses the effect of demography, the labour market and the geographic structure of a metropolitan area on changes in income inequality.







Urban Socio-Economic Segregation and Income Inequality


Book Description

This open access book investigates the link between income inequality and socio-economic residential segregation in 24 large urban regions in Africa, Asia, Australia, Europe, North America, and South America. It offers a unique global overview of segregation trends based on case studies by local author teams. The book shows important global trends in segregation, and proposes a Global Segregation Thesis. Rising inequalities lead to rising levels of socio-economic segregation almost everywhere in the world. Levels of inequality and segregation are higher in cities in lower income countries, but the growth in inequality and segregation is faster in cities in high-income countries. This is causing convergence of segregation trends. Professionalisation of the workforce is leading to changing residential patterns. High-income workers are moving to city centres or to attractive coastal areas and gated communities, while poverty is increasingly suburbanising. As a result, the urban geography of inequality changes faster and is more pronounced than changes in segregation levels. Rising levels of inequality and segregation pose huge challenges for the future social sustainability of cities, as cities are no longer places of opportunities for all.




Neighborhood Income Inequality


Book Description

"This paper offers a descriptive empirical analysis of the geographic pattern of income inequality within a sample of 359 US metropolitan areas between 1980 and 2000. Specifically, we decompose the variance of metropolitan area-level household income into two parts: one associated with the degree of variation among household incomes within neighborhoods - defined by block groups and tracts - and the other associated with the extent of variation among households in different neighborhoods. Consistent with previous work, the results reveal that the vast majority of a city's overall income inequality--at least three quarters--is driven by within-neighborhood variation rather than between-neighborhood variation, although we find that the latter rose significantly during the 1980s, especially between block groups. We then identify a number of metropolitan area-level characteristics that are associated with both levels of and changes in the degree of each type of residential income inequality"--Federal Reserve Bank of St. Louis web site.




Equity, Growth, and Community


Book Description

In the last several years, much has been written about growing economic challenges, increasing income inequality, and political polarization in the United States. Addressing these new realities in America's metropolitan regions, this book argues that a few lessons are emerging: first, inequity is bad for economic growth; second, bringing together the concerns of equity and growth requires concerted local action; and third, the fundamental building block for doing this is the creation of diverse and dynamic epistemic (or knowledge) communities, which help to overcome political polarization and to address the challenges of economic restructuring and social divides.




Essays on Income Inequality and Environmental Outcomes in Metropolitan America


Book Description

"Income inequality has increased significantly in more than three quarters of OECD countries over the last few decades (OECD, 2011). This rise in inequality has been particularly pronounced in the United States, and especially so across urban areas where the average metropolitan total income Gini coefficient rose from .45 to .52 over the 1980 to 2010 period. During this time, the increasingly uneven distribution of income reflects the pulling away of high-income earners with the top decile share of income rising from 35% to nearly 50%. Such an increase in inequality has far-reaching effects, undermining political, economic, social and environmental stability. The processes that drive inequality, working simultaneously at the global and local scales, take place in and shape the environment. This thesis examines trends in metropolitan income inequality in the United States and its relationship to environmental inequality by asking two overarching questions: 1) how is income inequality distributed across metropolitan areas in the US and how have these patterns changed over time? and (2) how is metropolitan income inequality related to environmental inequality in the US? The systematic review (Chapter 2) shows that as income inequality has grown, there has been a commensurate growth in the literature, especially since the mid- to late-1990s. Researchers from a multitude of disciplines have sought to further our understanding of income inequality, examining both the (i) causes of and (ii) consequences of rising inequality from a variety of perspectives. Indeed, the review finds that one of the hallmarks of the literature is a growing trend towards interdisciplinary and multidimensional approaches to the study of inequality as roughly half of the top journals publishing work on both the causes and consequences of inequality cut across traditional disciplinary boundaries. Findings also suggest there is a need for a better understanding of the dynamics of inequality at the metropolitan level.To shed light on these dynamics, this thesis uses the Census Bureau’s Integrated Public Use Microdata Series (IPUMS) to build a unique large-scale comparative dataset for 226 Metropolitan Statistical Areas (MSAs) in the US (Chapter 3). In terms of our understanding of the drivers of metropolitan inequality, modeling results suggest that education has the strongest impact on rising inequality; metropolitan areas with greater educational dispersion typically have higher levels of inequality, while increasing educational differences within metropolitan areas drive internal growth in inequality. Racial segregation is also linked to increasing inter-metropolitan inequality; places with greater levels of segregation are more unequal, and deepening segregation within metropolitan areas increases inequality. On the consequences side, much of the literature has focused its efforts on understanding the health outcomes of inequality. Much less attention has been paid to the potential environmental outcomes of higher inequality, particularly from an inter-metropolitan comparative perspective. To this effect, the panel model results presented in Chapter 4 are mixed. On the one hand, the examination of the long-run inequality-environment connection highlights a positive relationship between environmental degradation and inequality across US cities. On the other hand, short-term models show that while an increase in metropolitan inequality is associated with decreasing degradation, deepening segregation continues to be linked with increasing levels of pollution. These cross-city results lend further support to existing state-level and intra-metropolitan case study findings in the US. Future research should work toward obtaining better quality environmental degradation and pollution data at the metropolitan level in order to better parse out the connections between rising inequality and environmental outcomes"--




City Inequality


Book Description




A Spatial Analysis of Wage Inequality Among Foreign-born Workers in U.S. Metropolitan Areas


Book Description

This dissertation extends and connects prior research on wage inequality and immigration to the U.S. Focusing on evidences derived from cross-metropolitan comparisons, it finds unique temporal trends and spatial patterns of wage inequality among immigrant workers, identifies wage differentials among immigrant groups by individual characteristics, and evaluates the roles of different labor market conditions in determining changes in immigrant wage inequality and their spatial variations. These findings point to the fact that race and ethnicity and geography are two key factors in understanding immigrant wage inequality. While race and ethnicity play an increasingly important role in determining wage disparities among immigrant workers, wage inequality of immigrant workers also depends on their settlement patterns and labor market conditions in their destinations. Wage inequality among immigrants in the U.S. is a function of different types of metropolitan areas, which serve as urban contexts to accommodate racial and ethnic concentration of immigrant workers and their divergent historical economic incorporation. Using the Integrated Public Use Microdata Sample (IPUMS) data of the Decennial Census for the years 1980, 1990, 2000 and pooled 5-year ACS data in 2009, my empirical analysis shows that immigrants had wider wage gap and higher rates of inequality growth during the past three decades than the native-born workers in the U.S. There was great heterogeneity in urban wage inequality among immigrant workers. But all metropolitan areas experienced a rapid growth in wage inequality since 1980. A decomposition of wage inequality of the overall labor force in the U.S. by nativity shows that immigrant wage inequality and their local income shares both had an impact on the contribution of immigrant wage inequality to wage inequality of the overall labor force. An examination of immigrant wage differentials between educational and racial and ethnic groups finds rapid growths in three-decade wage gaps between college graduates and high-school dropouts and that between White and Hispanic foreign-born workers. Among different sources of growth in immigrant wage inequality, the contribution of residual wage inequality declined moderately while the contribution of race and ethnicity continued to grow rapidly during the past three decades. Finally, focusing on labor market level attributes, panel regression models suggest that city population size, R & D spending, structural shifts from manufacturing to services employment, de-unionization in the labor force all contributed significantly to changes in overall and residual wage inequality among both male and female immigrant workers in U.S. metropolitan areas. To certain extent, geography also explained inter-metropolitan variations in overall wage inequality and in residual wage inequality among immigrant workers. For both genders, wage inequalities among immigrant workers tended to be lower in former immigrant gateway metros than in low-immigrant metros. Major-continuous gateway cities were more likely to have significantly higher levels of residual wage inequality among male immigrant workers than low-immigrant metropolitan areas.




Causes and Consequences of Income Inequality


Book Description

This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.




Inequality and the Measurement of Residential Segregation by Income in American Neighborhoods


Book Description

American metropolitan areas have experienced rising residential segregation by income since 1970. One potential explanation for this change is growing income inequality. However, measures of residential sorting are typically mechanically related to the income distribution, making it difficult to identify the impact of inequality on residential choice. This paper presents a measure of residential segregation by income, the Centile Gap Index (CGI) which is based on income percentiles. Using the CGI, I find that a one standard deviation increase in income inequality raises residential segregation by income by 0.4-0.9 standard deviations. Inequality at the top of the distribution is associated with more segregation of the rich, while inequality at the bottom and declines in labor demand for less-skilled men are associated with residential isolation of the poor. Inequality can fully explain the rise in income segregation between 1970 and 2000.