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Local Area Inequality and Worker Well-Being

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  • Michael D. Carr

Abstract

This paper uses General Social Survey data linked to Census data to investigate the effect of local area income and income inequality on worker well-being. Others have found a robust negative correlation between reference group income and self-reported well-being. However, in many cases the reference group is defined as a large geographic area. This paper adds to the literature in two ways. First, it considers multiple nested geographic reference groups with US data. Second, it explicitly considers income inequality in addition to the level of income. It is found that both income and income inequality are positively associated with well-being at the census tract level, but negatively associated at the county level. Further, the effect of inequality on well-being decreases as income increases at the census tract and county level, while it increases at the state level.

Suggested Citation

  • Michael D. Carr, 2013. "Local Area Inequality and Worker Well-Being," Review of Social Economy, Taylor & Francis Journals, vol. 71(1), pages 44-64, March.
    • Handle: RePEc:taf:rsocec:v:71:y:2013:i:1:p:44-64
    DOI: 10.1080/00346764.2012.707399
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    Cited by:

    1. repec:mab:wpaper:15 is not listed on IDEAS
    2. Michael D. Carr & Arjun Jayadev, 2015. "Relative Income and Indebtedness: Evidence from Panel Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(4), pages 759-772, December.
    3. Michael D. Carr & Arjun Jayadev, 2013. "Relative Income and Indebtedness: Evidence from Panel Data," Working Papers 2013_02, University of Massachusetts Boston, Economics Department.
    4. Michael Carr & Aurelie Charles & Wilfred Dolfsma & Robert McMaster & Tonia Warnecke, 2015. "Effective Contributions to the Review of Social Economy and Social Economics—Editorial," Review of Social Economy, Taylor & Francis Journals, vol. 73(2), pages 139-145, June.

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