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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

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    1. Berry, Christopher R. & Glaeser, Edward L., 2005. "Divergence of Human Capital Levels across Cities," Working Paper Series rwp05-057, Harvard University, John F. Kennedy School of Government.
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    5. 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.
    6. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    7. Maarten Goos & Alan Manning, 2007. "Lousy and Lovely Jobs: The Rising Polarization of Work in Britain," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 118-133, February.
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    12. Joakim Palme & Walter Korpi, 1998. "The Paradox of Redistribution and Strategies of Equality: Welfare State Institutions, Inequality and Poverty in the Western Countries," LIS Working papers 174, LIS Cross-National Data Center in Luxembourg.
    13. Christopher R. Berry & Edward L. Glaeser, 2005. "The divergence of human capital levels across cities," Papers in Regional Science, Wiley Blackwell, vol. 84(3), pages 407-444, August.
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    Citations

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    Cited by:

    1. Amitrajeet A. Batabyal & Peter Nijkamp, 2018. "A Two-Sector Model of Creative Capital Driven Regional Economic Growth," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(3), pages 831-840, September.
    2. Kaltenberg, Mary & Foster-McGregor, Neil, 2020. "The impact of automation on inequality across Europe," MERIT Working Papers 2020-009, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. 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.
    4. 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.
    5. Haroon Ur Rashid Khan & Anwar Khan & Khalid Zaman & Agha Amad Nabi & Sanil S. Hishan & Talat Islam, 2017. "Gender discrimination in education, health, and labour market: a voice for equality," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(5), pages 2245-2266, September.
    6. 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.
    7. Benedikt S. L. Fritz & Robert A. Manduca, 2019. "The Economic Complexity of US Metropolitan Areas," Papers 1901.08112, arXiv.org.
    8. Stefania De Medici & Patrizia Riganti & Serena Viola, 2018. "Circular Economy and the Role of Universities in Urban Regeneration: The Case of Ortigia, Syracuse," Sustainability, MDPI, Open Access Journal, vol. 10(11), pages 1-26, November.
    9. 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.
    10. Anastasia PANORI & Yannis PSYCHARIS, 2018. "The impact of the economic crisis on poverty and welfare in Athens," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 48, pages 23-40.
    11. Rafa Madariaga & Joan Carles Martori & Ramon Oller, 2019. "Wage income inequality in Catalonian second-rank cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 285-304, April.

    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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