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On Rich Cities and Boring Places

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  • Andreas Stich

    (Geschäftsstelle des Wissenschaftsrates, Brohler Strasse 11, 50968 Koln, Germany, stich@wrat.de)

Abstract

This paper investigates the effect of city size on income inequality in Germany after reunification. Using the Gini index, income inequality is computed. No correlation between income inequality and city size can be found, but dividing Germany in East and West Germany gives further insight into the dependence. It can be seen that a positive connection between city size and income inequality exists in West Germany, while in East Germany no correlation can be found. Another interesting point is the development of income in East German cities. It is shown in this paper that incomes increase rapidly in all cities while the increase in inequality is astonishingly small.

Suggested Citation

  • Andreas Stich, 1999. "On Rich Cities and Boring Places," Urban Studies, Urban Studies Journal Limited, vol. 36(10), pages 1649-1660, September.
    • Handle: RePEc:sae:urbstu:v:36:y:1999:i:10:p:1649-1660
    DOI: 10.1080/0042098992755
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    References listed on IDEAS

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    1. Richard V. Burkhauser & Timothy M. Smeeding & Joachim Merz, 1996. "Relative Inequality And Poverty In Germany And The United States Using Alternative Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(4), pages 381-400, December.
    2. Barry T. Hirsch, 1982. "Income Distribution, City Size and Urban Growth: a Final Re-examination," Urban Studies, Urban Studies Journal Limited, vol. 19(1), pages 71-74, February.
    3. Ulrich Rendtel & Rolf Langeheine & Roland Berntsen, 1992. "The Estimation of Poverty-Dynamics Using Different Household Income Measures," Discussion Papers of DIW Berlin 56a, DIW Berlin, German Institute for Economic Research.
    4. Stich, Andreas, 1996. "Poverty and life cycle effects: A nonparametric analysis for Germany," Discussion Papers in Econometrics and Statistics 5/96, University of Cologne, Institute of Econometrics and Statistics.
    5. Edward J. Bird & Johannes Schwarze & Gert G. Wagner, 1994. "Wage Effects of the Move toward Free Markets in East Germany," ILR Review, Cornell University, ILR School, vol. 47(3), pages 390-400, April.
    6. Long, James E & Rasmussen, David W & Haworth, Charles T, 1977. "Income Inequality and City Size," The Review of Economics and Statistics, MIT Press, vol. 59(2), pages 244-246, May.
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    Cited by:

    1. Gornig, Martin & Goebel, Jan, 2018. "Deindustrialisation and the polarisation of household incomes: The example of urban agglomerations in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(4), pages 790-806.
    2. Oren M. Levin-Waldman, 2004. "Exploring the Demographic Factors Affecting Passage of Living Wage Ordinances," Working Papers wp88, Political Economy Research Institute, University of Massachusetts at Amherst.

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