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Urban Inequality

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  • Edward L. Glaeser
  • Matthew G. Resseger
  • Kristina Tobio

Abstract

What impact does inequality have on metropolitan areas? Crime rates are higher in places with more inequality, and people in unequal cities are more likely to say that they are unhappy. There is also a negative association between local inequality and the growth of both income and population, once we control for the initial distribution of skills. What determines the degree of inequality across metropolitan areas? Twenty years ago, metropolitan inequality was strongly associated with poverty, but today, inequality is more strongly linked to the presence of the wealthy. Inequality in skills can explain about one third of the variation in income inequality, and that skill inequality is itself explained by historical schooling patterns and immigration. There are also substantial differences in the returns to skill, related to local concentrations in different industries, and these too are strongly correlated with inequality.

Suggested Citation

  • Edward L. Glaeser & Matthew G. Resseger & Kristina Tobio, 2008. "Urban Inequality," NBER Working Papers 14419, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:14419
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    References listed on IDEAS

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    Cited by:

    1. Weizeng Sun & Siqi Zheng & Yuming Fu, 2016. "Local Public Service Provision and Spatial Inequality in Chinese Cities," ERSA conference papers ersa16p799, European Regional Science Association.
    2. Shahid Yusuf & Kaoru Nabeshima, 2009. "Growth through Innovation : An Industrial Strategy for Shanghai," World Bank Other Operational Studies 18613, The World Bank.
    3. Papps, Kerry L. & Bryson, Alex & Gomez, Rafael, 2011. "Heterogeneous worker ability and team-based production: Evidence from major league baseball, 1920-2009," Labour Economics, Elsevier, vol. 18(3), pages 310-319, June.
    4. World Bank, 2012. "From Political to Economic Awakening in the Arab World : The Path of Economic Integration - Deauville Partnership Report on Trade and Foreign Direct Investment, Volume 1. Overview Report," World Bank Other Operational Studies 11886, The World Bank.
    5. Mark Frank, 2009. "Income Inequality, Human Capital, and Income Growth: Evidence from a State-Level VAR Analysis," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 37(2), pages 173-185, June.
    6. Peter McHenry, 2014. "The Geographic Distribution Of Human Capital: Measurement Of Contributing Mechanisms," Journal of Regional Science, Wiley Blackwell, vol. 54(2), pages 215-248, March.
    7. Cruces, Guillermo & Perez-Truglia, Ricardo & Tetaz, Martin, 2013. "Biased perceptions of income distribution and preferences for redistribution: Evidence from a survey experiment," Journal of Public Economics, Elsevier, vol. 98(C), pages 100-112.
    8. World Bank, 2012. "From Political to Economic Awakening : The Path of Economic Integration - Deauville Partnership Report on Trade and Foreign Direct Investment, Volume 2. Main Report," World Bank Other Operational Studies 11887, The World Bank.
    9. Karima Kourtit & Peter Nijkamp & Mark D. Partridge & Hans Lööf & Pardis Nabavi, 2013. "Increasing returns to smart cities," Regional Science Policy & Practice, Wiley Blackwell, vol. 5(2), pages 255-262, June.
    10. Fabio Clementi & Francesco Schettino & Enzo Valentini, 2017. "Squilibri distributivi e criminalità nelle regioni italiane," Working Papers 48-2017, Macerata University, Department of Studies on Economic Development (DiSSE), revised May 2017.

    More about this item

    JEL classification:

    • H0 - Public Economics - - General
    • I0 - Health, Education, and Welfare - - General
    • J0 - Labor and Demographic Economics - - General
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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