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Dual Cities? Sectoral Shifts and Metropolitan Income Inequality, 1980--90

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  • Hilary Silver
  • REGINA BURES

Abstract

The sectoral shift from manufacturing to services is one of several potential explanations for increasing income inequality in the United States. This article reframes national-level explanations of rising inequality at the level of urban labour markets and assesses their relative contributions to levels and trends in metropolitan income inequality. We find that sectoral shifts, especially the rates of deindustrialisation and employment growth in personal services, significantly affect changes in Gini indices for the largest constant-boundary MSAs between 1980 and 1990. In addition, rising metropolitan inequality is associated with the trend towards self-employment and such supply-side factors as local education levels, changing family structure and immigration. The study provides mixed support for the mismatch and global cities hypotheses.

Suggested Citation

  • Hilary Silver & REGINA BURES, 1997. "Dual Cities? Sectoral Shifts and Metropolitan Income Inequality, 1980--90," The Service Industries Journal, Taylor & Francis Journals, vol. 17(1), pages 69-90, January.
    • Handle: RePEc:taf:servic:v:17:y:1997:i:1:p:69-90
    DOI: 10.1080/02642069700000004
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    References listed on IDEAS

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    3. Joseph G. Altonji & David Card, 1991. "The Effects of Immigration on the Labor Market Outcomes of Less-skilled Natives," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 201-234, National Bureau of Economic Research, Inc.
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