The Geography of Inequality: Difference and Determinants of Wage and Income Inequality across US Metros
This paper examines the geographic variation in inequality, and it distinguishes between wage and income inequality. Wage inequality is associated with skills, human capital, technology and metro size - in line with the literature on skill-biased technical change. Income inequality is instead more closely associated with race, poverty, lower levels of unionization and lower taxes. This suggests that income inequality is a product not only of skill-biased technical change, but also of the enduring legacy of race and poverty at the bottom of the socio-economic order, as well as the unraveling of the post-war social compact between capital and labor.
|Date of creation:||12 Apr 2013|
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- Nathaniel Baum-Snow & Ronni Pavan, 2013. "Inequality and City Size," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1535-1548, December.
- Boyd Hamilton Hunter, 2003. "Trends in neighbourhood inequality of Australian, Canadian, and United States of America cities since the 1970s," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 43(1), pages 22-44, 03.