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The Geography of Inequality: Difference and Determinants of Wage and Income Inequality across US Metros

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  • Florida , Richard

    () (University of Toronto)

  • Mellander , Charlotta

    () (Jönköping International Business School)

Abstract

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.

Suggested Citation

  • Florida , Richard & Mellander , Charlotta, 2013. "The Geography of Inequality: Difference and Determinants of Wage and Income Inequality across US Metros," Working Paper Series in Economics and Institutions of Innovation 304, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0304
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    References listed on IDEAS

    as
    1. 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.
    2. 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, March.
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    Cited by:

    1. Mario Reinhold, 2016. "On the Link between Job Polarisation and Wage Inequality - A regional approach for Germany," ERSA conference papers ersa16p361, European Regional Science Association.
    2. Betsy Donald & Mia Gray & Centre for Business Research, 2018. "The Double Crisis: In What Sense A Regional Problem?," Working Papers wp507, Centre for Business Research, University of Cambridge.
    3. Neil Lee & Andrés Rodríguez-Pose, 2016. "Is there trickle-down from tech? Poverty, employment and the high-technology multiplier in US cities," Papers in Evolutionary Economic Geography (PEEG) 1618, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2016.
    4. Reinhold, Mario, 2016. "On the Link between Job Polarisation and Wage Inequality in Germany," Annual Conference 2016 (Augsburg): Demographic Change 145802, Verein für Socialpolitik / German Economic Association.
    5. Batabyal, Amitrajeet & Nijkamp, Peter, 2017. "A Two-Sector Model of Creative Capital Driven Regional Economic Growth," MPRA Paper 79572, University Library of Munich, Germany.
    6. repec:spr:qualqt:v:51:y:2017:i:5:d:10.1007_s11135-016-0384-4 is not listed on IDEAS

    More about this item

    Keywords

    inequality; income; wage; high-tech; skills;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

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