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Trends In Neighborhood Income Inequality In The U.S.: 1980–2000

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  • Christopher H. Wheeler
  • Elizabeth A. La Jeunesse

Abstract

ABSTRACT This paper reports evidence on the geographic pattern of income inequality, both within and between neighborhoods, across a sample of 359 U.S. metropolitan areas between 1980 and 2000. The results indicate that overall income inequality within a metro area tends to be driven by variation within neighborhoods, not between them, although we find that between‐neighborhood differences rose dramatically during the 1980s and subsided somewhat during the 1990s. While this trend is similar to what existing research has found, our findings reveal potentially important differences in the magnitudes of the changes depending on whether neighborhoods are defined by block groups or tracts.

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  • Christopher H. Wheeler & Elizabeth A. La Jeunesse, 2008. "Trends In Neighborhood Income Inequality In The U.S.: 1980–2000," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 879-891, December.
    • Handle: RePEc:bla:jregsc:v:48:y:2008:i:5:p:879-891
    DOI: 10.1111/j.1467-9787.2008.00590.x
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    1. Dennis Epple & Holger Sieg, 1999. "Estimating Equilibrium Models of Local Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 645-681, August.
    2. Susan E. Mayer, 2001. "How the Growth in Income Inequality Increased Economic Segregation," Working Papers 0117, Harris School of Public Policy Studies, University of Chicago.
    3. Hardman, Anna & Ioannides, Yannis M., 2004. "Neighbors' income distribution: economic segregation and mixing in US urban neighborhoods," Journal of Housing Economics, Elsevier, vol. 13(4), pages 368-382, December.
    4. Christopher J. Mayer, 1996. "Does location matter?," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 26-40.
    5. Janice F. Madden, 2000. "Changes in Income Inequality within U.S. Metropolitan Areas," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number cii, August.
    6. Ioannides, Yannis M., 2004. "Neighborhood income distributions," Journal of Urban Economics, Elsevier, vol. 56(3), pages 435-457, November.
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    Cited by:

    1. Peters, David J., 2013. "Understanding the Poverty U-turn Across Geographic Scales in the American Midwest, 1980-2010," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(2).
    2. Fuad Hasanov & Oded Izraeli, 2011. "Income Inequality, Economic Growth, And The Distribution Of Income Gains: Evidence From The U.S. States," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 518-539, August.
    3. Francesco Andreoli & Mauro Mussini & Vincenzo Prete, 2019. "Urban poverty: Theory and evidence from American cities," Working Papers 08/2019, University of Verona, Department of Economics.
    4. Pangallo, Marco & Nadal, Jean-Pierre & Vignes, Annick, 2019. "Residential income segregation: A behavioral model of the housing market," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 15-35.
    5. David J. Peters, 2011. "Place-Based Income Inequality Clusters in the Rural North Central Region, 1979–2009," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(2), pages 222-240.
    6. Gallagher, Ryan M., 2021. "Income segregation's impact on local public expenditures: Evidence from municipalities and school districts, 1980–2010," Regional Science and Urban Economics, Elsevier, vol. 90(C).
    7. Hu, Xiao & Liang, Che-Yuan, 2022. "Does income redistribution prevent residential segregation?," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 519-542.
    8. Francesco Andreoli & Eugenio Peluso, 2016. "So close yet so unequal: Reconsidering spatial inequality in U.S. cities," Working Papers 21/2016, University of Verona, Department of Economics.
    9. Schulz, Jan & Mayerhoffer, Daniel M., 2021. "A network approach to consumption," BERG Working Paper Series 173, Bamberg University, Bamberg Economic Research Group.
    10. Bebonchu Atems, 2013. "A Note On The Differential Regional Effects Of Income Inequality: Empirical Evidence Using U.S. County-Level Data," Journal of Regional Science, Wiley Blackwell, vol. 53(4), pages 656-671, October.
    11. Francesco Andreoli & Vincenzo Prete & Claudio Zoli, 2023. "The measurement of segregation sensitive spatial income deprivation," Working Papers 03/2023, University of Verona, Department of Economics.

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