Why Have Poorer Neighbourhoods Stagnated Economically, While the Richer have Flourished? Neighbourhood Income Inequality in Canadian Cities
Higher income neighbourhoods in Canadaâ€™s eight largest cities flourished economically during the past quarter century, while lower income communities stagnated. This paper identifies some of the underlying processes that led to this outcome. Increasing family income inequality drove much of the rise in neighbourhood inequality. Increased spatial economic segregation, the increasing tendency of â€œlike to live nearby likeâ€ , also played a role. In the end, the differential economic outcomes between richer and poorer neighbourhoods originated in the labour market, or in family formation patterns. Changes in investment, pension income, or government transfers played a very minor role. But it was not unemployment that differentiated the richer from poorer neighbourhoods. Rather, it was the type of job found, particularly the annual earnings generated. The end result has been little improvement in economic resources in poor neighbourhoods during a period of substantial economic growth, and a rise in neighbourhood income inequality.
|Date of creation:||21 Aug 2011|
|Date of revision:||21 Aug 2011|
|Contact details of provider:|| Web page: http://www.clsrn.econ.ubc.ca/|
References listed on IDEAS
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- Burkhauser, Richard V & Smeeding, Timothy M & Merz, Joachim, 1996.
"Relative Inequality and Poverty in Germany and the United States Using Alternative Equivalence Scales,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 42(4), pages 381-400, December.
- Burkhauser, Richard V. & Smeeding, Timothy M. & Merz, Joachim, 1994. "Relative Inequality and Poverty in Germany and the United States Using Alternative Equivalence Scales," MPRA Paper 7229, University Library of Munich, Germany.
- Burkhauser, Richard V. & Smeeding, Timothy M. & Merz, Joachim, 1994. "Relative Inequality and Poverty in Germany and the United States Using Alternative Equivalence Scales," MPRA Paper 16295, University Library of Munich, Germany.
- Richard Burkhauser & Timothy Smeeding & Joachim Merz, 1994. "Relative Inequality and Poverty in Germany and the United States Using Alternative Equivalence Scales," LIS Working papers 117, LIS Cross-National Data Center in Luxembourg.
- Richard V. Burkhauser & Timothy M. Smeeding & Joachim Merz, 1994. "Relative Inequality and Poverty in Germany and the United States Using Alternative Equivalence Scales," FFB-Discussionpaper 12, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
- Hatfield, M., 1997. "Concentrations of Poverty and Distressed Neighbourhoods in Canada," Papers w-97-1e, Gouvernement du Canada - Human Resources Development.
- Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
- Murphy, Brian B & Wolfson, Michael, 1998. "New Views on Inequality Trends in Canada and the United States," Analytical Studies Branch Research Paper Series 1998124e, Statistics Canada, Analytical Studies Branch. Full references (including those not matched with items on IDEAS)
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