Urban Poverty: Theory and Evidence From American Cities

Luxembourg Institute of Socio-Economic Research (LISER) Working Paper Series 2019-07

68 Pages Posted: 12 Jun 2019

See all articles by Andreoli Francesco

Andreoli Francesco

Luxembourg Institute of Socio-Economic Research (LISER)

mauro mussini

affiliation not provided to SSRN

Vincenzo Prete

University of Verona - Department of Economics

Date Written: April 9, 2019

Abstract

The concentrated poverty index, i.e. the proportion of a metro area's poor population living in extreme-poverty neighborhoods, is widely adopted as a policy-relevant measure of urban poverty. We challenge this view and develop a family of new indices of urban poverty that, differently from concentrated poverty measures, i) capture aspects of the incidence and distribution of poverty across neighborhoods and ii) are grounded on empirical evidence that living in a high-poverty neighborhood is detrimental for many dimensions of resident's well-being. We demonstrate that a parsimonious axiomatic model that incorporates these two aspects characterizes exactly one urban poverty index. We show that changes of this urban poverty index within the same city are additively decomposable into the contribution of demographic, convergence, re-ranking and spatial effects. We collect new evidence of heterogeneous patterns and trends of urban poverty across American metro areas over the last 35 years and use city characteristics to identify relevant drivers.

Keywords: concentrated poverty, axiomatic, decomposition, Census, ACS, spatial

JEL Classification: D31, I32, P25

Suggested Citation

Francesco, Andreoli and mussini, mauro and Prete, Vincenzo, Urban Poverty: Theory and Evidence From American Cities (April 9, 2019). Luxembourg Institute of Socio-Economic Research (LISER) Working Paper Series 2019-07, Available at SSRN: https://ssrn.com/abstract=3394739 or http://dx.doi.org/10.2139/ssrn.3394739

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

Mauro Mussini

affiliation not provided to SSRN

Vincenzo Prete

University of Verona - Department of Economics ( email )

Via dell'Artigliere, 8
37129 Verona
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
29
Abstract Views
264
PlumX Metrics