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The income-inequality relationship within U.S. metropolitan areas 1980-2016

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  • Seifert, Friederike

Abstract

Economic growth might both increase and decrease income inequality, depending on the circumstances. The nature of this relationship matters at the city level as well. This paper examines the income-inequality relationship within U.S. metropolitan areas using cross-section and panel regression techniques over the 1980-2016 period. It finds that this relationship changes over time. A higher per capita income level was associated with a lower within-MSA inequality level in earlier years, but this association vanished later. For the 1980-2000 panel, per capita income increases are accordingly associated with decreases in inequality. In contrast, an increase in per capita income is associated with an increase in inequality in the 2006-2016 panel. The obtained results hint at polarization resulting from technological change substituting middle-skill routine tasks, but further research is still required to solve this puzzle.

Suggested Citation

  • Seifert, Friederike, 2021. "The income-inequality relationship within U.S. metropolitan areas 1980-2016," CEPIE Working Papers 01/21, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    • Handle: RePEc:zbw:tudcep:0121
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    References listed on IDEAS

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    1. Richard Florida & Charlotta Mellander, 2016. "The Geography of Inequality: Difference and Determinants of Wage and Income Inequality across US Metros," Regional Studies, Taylor & Francis Journals, vol. 50(1), pages 79-92, January.
    2. David Castells-Quintana & Raul Ramos & Vicente Royuela, 2015. "Income inequality in European Regions: Recent trends and determinants," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 35(2), pages 123-146, October.
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    More about this item

    Keywords

    Inequality; Income; Metropolitan Areas; United States;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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