An official website of the United States government
Abstract We explore the impact of rising incomes at the top of the distribution on spatial sorting patterns within large U.S. cities. We develop and quantify a spatial model of a city with heterogeneous agents and non-homothetic preferences for neighbourhoods with endogenous amenity quality. As the rich get richer, demand increases for the high-quality amenities available in downtown neighbourhoods. Rising demand drives up house prices and spurs the development of higher quality neighbourhoods downtown. This gentrification of downtowns makes poor incumbents worse off, as they are either displaced to the suburbs or pay higher rents for amenities that they do not value as much. We quantify the corresponding impact on well-being inequality. Through the lens of the quantified model, the change in the income distribution between 1990 and 2014 led to neighbourhood change and spatial resorting within urban areas that increased the welfare of richer households relative to that of poorer households, above and beyond rising nominal income inequality.
more »
« less
Frontier workers and the seedbeds of inequality and prosperity
Abstract This article examines the role of work at the cutting of technological change—frontier work—as a driver of prosperity and spatial income inequality. Using new methods and data, we analyze the geography and incomes of frontier workers from 1880 to 2019. Initially, frontier work is concentrated in a set of ‘seedbed’ locations, contributing to rising spatial inequality through powerful localized wage premiums. As technologies mature, the economic distinctiveness of frontier work diminishes, as ultimately happened to cities like Manchester and Detroit. Our work uncovers a plausible general origin story of the unfolding of spatial income inequality.
more »
« less
- Award ID(s):
- 1924670
- PAR ID:
- 10512435
- Publisher / Repository:
- Oxford University Press
- Date Published:
- Journal Name:
- Journal of Economic Geography
- Volume:
- 24
- Issue:
- 3
- ISSN:
- 1468-2702
- Format(s):
- Medium: X Size: p. 393-414
- Size(s):
- p. 393-414
- Sponsoring Org:
- National Science Foundation
More Like this
-
-
Abstract We examine trends in household disposable income inequality and potential mechanisms shaping inequality through changes to work, wages, earnings, marriage, and the tax and transfer system in the United States over the nearly five‐decade period from 1975 to 2022. Overall after‐tax and transfer income inequality increased more than 25 per cent since the mid‐1970s, and by as much as 50 per cent when comparing the 90thand 10thpercentiles. While there has been substantial upgrading in formal education credentials among both men and women – an inequality‐reducing development – those with fewer credentials have increasingly been less likely to work and marry, each of which could result in higher inequality. The latter effects are exacerbated by those selecting into marriage and cohabitation being more likely to partner with those holding similar educational credentials and earning power. Moreover, the decline in work among the less skilled coincided with the transformation of the safety net to rewarding work. These demographic and policy changes have resulted in a pulling apart of the US income distribution.more » « less
-
This paper explores the concepts and computational methods used tomeasure spatial inequality, emphasizing a reproducible approach thatsocial scientists can apply to their research. The analysis focuses ongeographic income disparities at the sub-national level, using Mexico asa case study. By examining various a-spatial and spatially explicitapproaches, the paper highlights the complexities of measuringinequality across places and over time. The discussion includes a reviewof traditional inequality measures and introduces spatial decompositionmethods that account for the geographical distribution of income. Thefindings underscore the importance of integrating spatial considerationsinto inequality analysis to better understand the patterns and driversof regional disparities, thereby informing more effective and equitablepolicy interventions.more » « less
-
Abstract Flooding remains a major problem for the United States, causing numerous deaths and damaging countless properties. To reduce the impact of flooding on communities, the U.S. government established the Community Rating System (CRS) in 1990 to reduce flood damages by incentivizing communities to engage in flood risk management initiatives that surpass those required by the National Flood Insurance Program. In return, communities enjoy discounted flood insurance premiums. Despite the fact that the CRS raises concerns about the potential for unevenly distributed impacts across different income groups, no study has examined the equity implications of the CRS. This study thus investigates the possibility of unintended consequences of the CRS by answering the question: What is the effect of the CRS on poverty and income inequality? Understanding the impacts of the CRS on poverty and income inequality is useful in fully assessing the unintended consequences of the CRS. The study estimates four fixed‐effects regression models using a panel data set of neighborhood‐level observations from 1970 to 2010. The results indicate that median incomes are lower in CRS communities, but rise in floodplains. Also, the CRS attracts poor residents, but relocates them away from floodplains. Additionally, the CRS attracts top earners, including in floodplains. Finally, the CRS encourages income inequality, but discourages income inequality in floodplains. A better understanding of these unintended consequences of the CRS on poverty and income inequality can help to improve the design and performance of the CRS and, ultimately, increase community resilience to flood disasters.more » « less
-
null (Ed.)Cities seek nuanced understanding of intraurban inequality in energy use, addressing both income and race, to inform equitable investment in climate actions. However, nationwide energy consumption surveys are limited (<6,000 samples in the United States), and utility-provided data are highly aggregated. Limited prior analyses suggest disparity in energy use intensity (EUI) by income is ∼25%, while racial disparities are not quantified nor unpacked from income. This paper, using new empirical fine spatial scale data covering all 200,000 households in two US cities, along with separating temperature-sensitive EUI, reveals intraurban EUI disparities up to a factor of five greater than previously known. We find 1) annual EUI disparity ratios of 1.27 and 1.66, comparing lowest- versus highest-income block groups (i.e., 27 and 66% higher), while previous literature indicated only ∼25% difference; 2) a racial effect distinct from income, wherein non-White block groups (highest quintile non-White percentage) in the lowest-income stratum reported up to a further ∼40% higher annual EUI than less diverse block groups, providing an empirical estimate of racial disparities; 3) separating temperature-sensitive EUI unmasked larger disparities, with heating–cooling electricity EUI of lowest-income block groups up to 2.67 times (167% greater) that of highest income, and high racial disparity within lowest-income strata wherein high non-White (>75%) population block groups report EUI up to 2.56 times (156% larger) that of majority White block groups; and 4) spatial scales of data aggregation impact inequality measures. Quadrant analyses are developed to guide spatial prioritization of energy investment for carbon mitigation and equity. These methods are potentially translatable to other cities and utilities.more » « less
