So Close Yet so Unequal: Spatial Inequality in American Cities

Luxembourg Institute of Socio-Economic Research (LISER) Working Paper Series 2017-11

92 Pages Posted: 20 Jul 2017

See all articles by Andreoli Francesco

Andreoli Francesco

Luxembourg Institute of Socio-Economic Research (LISER)

Eugenio Peluso

University of Verona - Department of Economics

Date Written: July 13, 2017

Abstract

Rich income data and a new methodology are employed to investigate patterns and consequences of spatial inequality in American cities over the last 35 years. New Gini-type indices, which assess spatial inequality using individual neighborhoods of variable size as primitives, uncover from the data robust evidence of growing income inequality within the neighborhood. The welfare implications of this trend are investigated through reduced-form models, addressing potential bias due to sorting across and within cities. An exogenous increase of the income mix in the neighborhood is found to yield a significant drop in intergenerational mobility gains for young people.

Keywords: Neighborhood inequality, Gini, individual neighborhood, geostatistics, census, ACS, causal neighborhood effects, life expectancy, divided city, mixed city

JEL Classification: D31, D63, C21, R23, J62, I14

Suggested Citation

Francesco, Andreoli and Peluso, Eugenio, So Close Yet so Unequal: Spatial Inequality in American Cities (July 13, 2017). Luxembourg Institute of Socio-Economic Research (LISER) Working Paper Series 2017-11, Available at SSRN: https://ssrn.com/abstract=3003959 or http://dx.doi.org/10.2139/ssrn.3003959

Andreoli Francesco (Contact Author)

Luxembourg Institute of Socio-Economic Research (LISER) ( email )

11, Porte des Sciences
Campus Belval – Maison des Sciences Humaines
Esch-sur-Alzette, L-4366
Luxembourg

HOME PAGE: http://www.liser.lu

Eugenio Peluso

University of Verona - Department of Economics ( email )

Via dell'Artigliere, 8
37129 Verona
Italy

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