The Income-Inequality Relationship within US Metropolitan Areas 1980-2016

Friederike Seifert ()
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Friederike Seifert: TU Dresden: Faculty of Business and Economics and "Friedrich List" Faculty of Transport and Traffic Sciences, Dresden, Germany. Leibniz Institute of Ecological Urban and Regional Development, Dresden, Germany. Dresden Leibniz Graduate School, Dresden, Germany

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, 2022, issue 53, 67-90

Abstract: Economic growth might both increase and decrease income inequality, also at the city level. This paper examines the income-inequality relationship within US metropolitan areas and finds that it changes over time. A higher average income per capita level was associated with a lower inequality level in earli-er years, but this association vanished later. For the 1980-2000 panel, increases in the average income per capita are associated with decreases in inequality. In contrast, increases in the average income per capita are associated with increases in inequality in the 2006-2016 panel. The obtained results hint at polarization resulting from technological change substituting middle-skill routine tasks.

Keywords: Inequality; income; metropolitan areas; United States (search for similar items in EconPapers)
JEL-codes: D31 O18 R10 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ris:invreg:0485

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