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Inequality In Cities

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  • Edward L. Glaeser
  • Matt Resseger
  • Kristina Tobio
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    Abstract

    Much of the inequality literature has focused on national inequality, but local inequality is also important. Crime rates are higher in more unequal cities; people in unequal cities are more likely to say that they are unhappy. There is a negative association between local inequality and the growth of city-level income and population, once we control for the initial distribution of skills. High levels of mobility across cities mean that city-level inequality should not be studied with the same analytical tools used to understand national inequality, and policy approaches need to reflect the urban context. Urban inequality reflects the choices of more and less skilled people to live together in particular areas. City-level skill inequality can explain about one-third of the variation in city-level income inequality, while skill inequality is itself explained by historical schooling patterns and immigration. Local income also reflects the substantial differences in the returns to skill across, which are related to local industrial patterns. Copyright (c) 2009, Wiley Periodicals, Inc.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Regional Science.

    Volume (Year): 49 (2009)
    Issue (Month): 4 ()
    Pages: 617-646

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    Handle: RePEc:bla:jregsc:v:49:y:2009:i:4:p:617-646

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    Cited by:
    1. de Oliveira Cruz , Bruno & Naticchioni , Paolo, 2012. "Falling urban wage premium and inequality trends: evidence for Brazil," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 24, pages 91-113.
    2. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent & Roux, Sébastien, 2012. "Sorting and local wage and skill distributions in France," CEPR Discussion Papers 8920, C.E.P.R. Discussion Papers.
    3. Kristian Behrens & Gilles Duranton & Frédéric Robert-Nicoud, 2013. "Productive cities: Sorting, selection, and agglomeration," Research Papers by the Department of Economics, University of Geneva 13111, Département des Sciences Économiques, Université de Genève.
    4. Kohei Nagamachi, 2012. "Comparative Advantage and Skill Premium of Regions," CIRJE F-Series CIRJE-F-868, CIRJE, Faculty of Economics, University of Tokyo.
    5. Pokrovsky Dmitry & Behrens Kristian & Zhelobodko Evgeny, 2014. "Market Size, Entrepreneurship, and Income Inequality," EERC Working Paper Series 14/01e, EERC Research Network, Russia and CIS.
    6. Alessia Matano & Paolo Naticchioni, 2009. "Wage distribution and the spatial sorting of workers and firms," Working Papers - Dipartimento di Economia 8-DEISFOL, Dipartimento di Economia, Sapienza University of Rome, revised 2009.
    7. Tripathi, Sabyasachi, 2012. "Does higher economic growth reduce poverty and increase inequality? Evidence from Urban India," MPRA Paper 42022, University Library of Munich, Germany.

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