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Inequality in and across Cities

Author

Listed:
  • Jessica Sackett Romero
  • Felipe Schwartzman

Abstract

Inequality in the United States has an important spatial component. More-skilled workers tend to live in larger cities where they earn higher wages. Less-skilled workers make lower wages and do not experience similar gains even when they live in those cities. This dynamic implies that larger cities are also more unequal. These relationships appear to have become more pronounced as inequality has increased. The evidence points to externalities among high-skilled workers as a significant contributor to those patterns.

Suggested Citation

  • Jessica Sackett Romero & Felipe Schwartzman, 2018. "Inequality in and across Cities," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, issue October.
    • Handle: RePEc:fip:fedreb:00069
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    File URL: https://www.richmondfed.org/-/media/richmondfedorg/publications/research/economic_brief/2018/pdf/eb_18-10.pdf
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    Cited by:

    1. Philip Arestis, 2020. "Productivity and inequality in the UK: a political economy perspective," Review of Evolutionary Political Economy, Springer, vol. 1(2), pages 183-197, August.

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