The Retail Price of Inequality
This paper studies the relation between a city's income distribution and its retail price level using panel data. We find that an increase in the presence of lower-middle income households, relative to poor or upper income households, is associated with lower prices. Our findings suggest that greater income inequality raises the prices that poor households face, thus making it harder for them to invest in human capital.
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| Length: | |
| Date of creation: | 01 Jan 2001 |
| Date of revision: | |
| Publication status: | Published in Journal of Urban Economics 2001,, pp. 219-239 |
| Handle: | RePEc:isu:genres:11922 |
| Contact details of provider: | Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070 Phone: +1 515.294.6741 Fax: +1 515.294.0221 Web page: http://www.econ.iastate.edu Email: More information through EDIRC
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References listed on IDEAS
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- 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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- Kunreuther, Howard, 1973. "Why the Poor May Pay More for Food: Theoretical and Empirical Evidence," The Journal of Business, University of Chicago Press, vol. 46(3), pages 368-83, July.
- Joseph G. Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcomes of Natives," NBER Working Papers 3123, National Bureau of Economic Research, Inc.
- Daniel Feenberg & Elisabeth Coutts, 1993. "An introduction to the TAXSIM model," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(1), pages 189-194.
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- MacDonald, James M. & Nelson, Paul Jr., 1991. "Do the poor still pay more? Food price variations in large metropolitan areas," Journal of Urban Economics, Elsevier, vol. 30(3), pages 344-359, November.
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