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So close yet so unequal: Reconsidering spatial inequality in U.S. cities

Author

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  • Francesco Andreoli
  • Eugenio Peluso

    (Università Cattolica del Sacro Cuore
    Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)

Abstract

Spatial income inequality in cities is assessed by looking at the distribution of income across individuals and their neighbors. Two new Gini-type spatial inequality indices are introduced: the first index measures the average degree of income inequality within individual neighborhoods; the second index measures the inequality of average incomes among individual neighborhoods. Connections with geostatistics are investigated and the asymptotic distributions of these indices are derived. A rich income database from the U.S. census is used to establish new stylized facts about the patterns of spatial inequality in the 50 largest American cities during the last 35 years. Four different types of city are identified, according to the level of inequality between and within individual neighborhoods. Inequality within the neighborhood is shown to be associated with lifelong economic and health expectations of urban residents.

Suggested Citation

  • Francesco Andreoli & Eugenio Peluso, 2017. "So close yet so unequal: Reconsidering spatial inequality in U.S. cities," DISCE - Working Papers del Dipartimento di Economia e Finanza def055, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie1:def055
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    More about this item

    Keywords

    Neighborhood inequality; Gini; individual neighborhood; variogram; geostatistics; census; ACS; causal neighborhood e ects; life expectancy; divided city; mixed city.;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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