Earnings inequality and central-city development
This paper was presented at the conference "Unequal incomes, unequal outcomes? Economic inequality and measures of well-being" as part of session 4, "Economic inequality and local public services." The conference was held at the Federal Reserve Bank of New York on May 7, 1999. The author considers not only the competition between cities, but also the competition between cities and the surrounding areas - the suburbs. He notes that rising income inequality tends to lead to greater income disparity between the suburbs and the central cities because the rich are more likely to move to the suburbs. In addition, business suburbanization has occurred because modern transportation and communication technologies have reduced the costs of moving people, goods, and messages over considerable distances. Moreover, some central business districts have become so large as to exhaust the advantages of locating there. However, the author suggests that the movement of businesses away from central cities began to change around 1996. Tighter labor markets have induced U.S. businesses to locate in central cities for the same reason that these businesses have been going to Mexico and East Asia - namely, the availability of relatively low-wage workers. The author also cites the dramatic fall in central-city crime rates in the 1990s and new legislation allowing cities to limit "brownfields liability" - the liability of businesses for environmental damage that occurred before their occupation of a site - as developments that have made it easier for businesses to return to the central cities.
Volume (Year): (1999)
Issue (Month): Sep ()
|Contact details of provider:|| Postal: 33 Liberty Street, New York, NY 10045-0001|
Web page: http://www.newyorkfed.org/
More information through EDIRC
|Order Information:|| Web: http://www.ny.frb.org/rmaghome/staff_rp/ Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mills, Edwin S., 1992. "The measurement and determinants of suburbanization," Journal of Urban Economics, Elsevier, vol. 32(3), pages 377-387, November.
- Peter Mieszkowski & Edwin S. Mills, 1993. "The Causes of Metropolitan Suburbanization," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 135-147, Summer.
- James Heckman & Lance Lochner & Christopher Taber, 1998.
"Explaining Rising Wage Inequality: Explanations With A Dynamic General Equilibrium Model of Labor Earnings With Heterogeneous Agents,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 1-58, January.
- James J. Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explorations with a Dynamic General Equilibrium Model of Labor Earnings with Heterogeneous Agents," NBER Working Papers 6384, National Bureau of Economic Research, Inc.
- Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers and Journal Articles 03-91, W.E. Upjohn Institute for Employment Research.
- Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:fip:fednep:y:1999:i:sep:p:133-142:n:v.5no.3. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amy Farber)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.