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Cities and Inequality

Author

Listed:
  • Alessandra Michelangeli

    (University of Milano-Bicocca, DEMS, Piazza Ateneo Nuovo 1, Milan I-20126, Italy)

  • Eugenio Peluso

    (Department of Economics (University of Verona))

Abstract

We propose an innovative methodology to measure inequality between cities. If an even distribution of amenities across cities is assumed to increase the average well-being in a given country, inequality between cities can be evaluated through a multidimensional index of the Atkinson (1970) type. This index is shown to be decomposabe into the sum of inequality indices computed on the marginal distributions of the amenities across cities, plus a residual term accounting for their correlation. We apply this methodology to assess inequality between Italian cities in terms of the distribution of public infrastructures, local services, economic and environmental conditions.

Suggested Citation

  • Alessandra Michelangeli & Eugenio Peluso, 2016. "Cities and Inequality," Working Papers 13/2016, University of Verona, Department of Economics.
    • Handle: RePEc:ver:wpaper:13/2016
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    • Alessandra Michelangeli & Eugenio Peluso, 2016. "Cities and Inequality," REGION, European Regional Science Association, vol. 3, pages 47-60.

    References listed on IDEAS

    as
    1. Abul Naga, Ramses H. & Geoffard, Pierre-Yves, 2006. "Decomposition of bivariate inequality indices by attributes," Economics Letters, Elsevier, vol. 90(3), pages 362-367, March.
    2. Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2005. "The Quantity and Quality of Life and the Evolution of World Inequality," American Economic Review, American Economic Association, vol. 95(1), pages 277-291, March.
    3. Aaberge, Rolf & Langørgen, Audun & Mogstad, Magne & Østensen, Marit, 2008. "The Impact of Local Public Services and Geographical Cost of Living Differences on Poverty Estimates," IZA Discussion Papers 3686, Institute of Labor Economics (IZA).
    4. Thibault Gajdos & John Weymark, 2005. "Multidimensional generalized Gini indices," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 26(3), pages 471-496, October.
    5. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    6. Marco Brambilla & Alessandra Michelangeli & Eugenio Peluso, 2013. "Equity in the City: On Measuring Urban (Ine)quality of Life," Urban Studies, Urban Studies Journal Limited, vol. 50(16), pages 3205-3224, December.
    7. Emilio Colombo & Alessandra Michelangeli & Luca Stanca, 2014. "La Dolce Vita : Hedonic Estimates of Quality of Life in Italian Cities," Regional Studies, Taylor & Francis Journals, vol. 48(8), pages 1404-1418, August.
    8. Brambilla, Marco Giovanni & Peluso, Eugenio, 2010. "A remark on "Decomposition of bivariate inequality indices by attributes" by Abul Naga and Geoffard, Economics Letters 90 (2006), pp. 362-367," Economics Letters, Elsevier, vol. 108(1), pages 100-100, July.
    9. Aaberge, Rolf & Bhuller, Manudeep & Langørgen, Audun & Mogstad, Magne, 2010. "The distributional impact of public services when needs differ," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 549-562, October.
    10. Croci Angelini, Elisabetta & Michelangeli, Alessandra, 2012. "Axiomatic measurement of multidimensional well-being inequality: Some distributional questions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 548-557.
    11. Timothy J. Bartik & V. Kerry Smith, 1996. "Urban Amenities and Public Policy," Book chapters authored by Upjohn Institute researchers, in: V. Kerry Smith (ed.),Estimating Economic Values for Nature: Methods for Non-Market Valuation, pages 271-318, W.E. Upjohn Institute for Employment Research.
    12. Paolo Veneri & Fabrice Murtin, 2016. "Where is inclusive growth happening? Mapping multi-dimensional living standards in OECD regions," OECD Statistics Working Papers 2016/1, OECD Publishing.
    13. Rolf Aaberge & Audun Langørgen & Petter Lindgren, 2013. "The distributional impact of public services in," Discussion Papers 746, Statistics Norway, Research Department.
    14. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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    Cited by:

    1. Tamara Premrov & Matthias Schnetzer, 2023. "Social mix and the city: Council housing and neighbourhood income inequality in Vienna," Urban Studies, Urban Studies Journal Limited, vol. 60(4), pages 752-769, March.

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    More about this item

    Keywords

    Inequality; inequality aversion; social welfare; city;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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