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City size, diversification, and income smoothing

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  • Andrea Lamorgese

Abstract

This article investigates the mechanisms by which the cities of the United States smooth out fluctuations in their income. Contributions for social security and government transfers (the government channel) take the bulk of smoothing (17 per cent), and intercity mobility ranks high: about 6 per cent of income shocks are smoothed via the choice of working in a city different from the place of residence. The empirical analysis also shows that the various channels of income smoothing operate differently according to the size and the degree of diversification of the city.

Suggested Citation

  • Andrea Lamorgese, 1999. "City size, diversification, and income smoothing," National Institute Economic Review, National Institute of Economic and Social Research, vol. 170(1), pages 99-105, October.
    • Handle: RePEc:sae:niesru:v:170:y:1999:i:1:p:99-105
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    Cited by:

    1. Shahid Yusuf, 2003. "Globalisation and the Challenge for Developing Countries," Journal of African Economies, Centre for the Study of African Economies, vol. 12(Supplemen), pages 35-72, February.

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