THE EFFECTS OF METROPOLITAN JOB GROWTH ON THE SIZE DISTRIBUTION OF FAMILY INCOME*

ABSTRACT. This article examines how a metropolitan area's job growth affects its income distribution, using CPS data from 1979 to 1988. Metropolitan growth increases the poorest quintile's income by a greater percentage than for the average family. Metropolitan growth also increases the value of property owned by the richest quintiles. Economic development programs to increase local growth will have a net progressive effect if the cost per job created is low, and these costs are financed by personal taxes. But programs with a high cost per job, or financed by cutting welfare, will reduce the net income of the poorest quintile.     

THE SENSITIVITY OF INPUT-OUTPUT MULTIPLIERS*

The present paper derives analytical expressions for the sensitivity of input-output multipliers to errors in the data. The effects on the simple output multipliers are investigated for additive errors, multiplicative errors in the columns, multiplicative errors in the rows, error rectangles, the error couple and the single error, and price changes. In contrast to earlier investigations, the results are not obtained from the Leontief inverse. The present approach focusses on the effects of errors on the eigenvector corresponding to the dominant eigenvalue. It is indicated how similar expressions may be derived for several other multipliers.     

THE STRUCTURE OF METROPOLITAN FACTOR AND PRODUCT MARKETS*

ABSTRACT. In this study we use a translog profit function and iterate seemingly unrelated regressions to estimate a system of factor demand and output supply functions for metropolitan economies. Our sample includes all metropolitan areas defined by the Census in 1977 for the period 1962 to 1982. Estimation shows that all price elasticities are elastic and that the signs are as expected. These results hold true for virtually all model specifications. Our findings indicate that federal, state, and local tax policies have significant impacts on factor demand and output supply. Public investment plays a positive and significant, but small, role in increasing output and in complementing other factors, although this influence has declined over time. Additionally, capital provided by the private sector has a substantially larger impact on output and employment than does capital provided by the public sector.     

LOGNORMAL EXTRAPOLATION AND INCOME ESTIMATION FOR POOR BLACK FAMILIES*

ABSTRACT. In studies of urban and state income distribution, the estimation of percentile incomes within intervals reported by the Bureau of the Census has often been done under the assumption that incomes are uniformly distributed. This paper shows that income may be significantly underestimated if the assumption is applied to lower-level percentiles in the black family income distribution. Consequently, conclusions about the level and determinants of the relative income of poor black families may be misleading.     

MEASURES OF INCOME INEQUALITY AND SOCIAL POLARIZATION IN CANADIAN METROPOLITAN AREAS

Rising inequality and polarization of employment earnings have been clearly documented in Canada and most other developed economies in the 1990s. Following a critical discussion of the use of the Cini coefficient as a measure of inequality in geography, the level of inequality and social polarization of household incomes at the census tract level is assessed for Canada's 22 largest Census Metropolitan Areas. The distribution of household income among metropolitan census tracts is generally becoming more unequal. In addition, the proportion of households in middle-income census tracts is declining in most metropolitan centres, lending further support to arguments that Canada's middle class is in decline .
L'augmentation des intégalité et la polarisation des revenus d'emploi a été clairement documentee au Canada et dans la plupart des autres pays industrialises durant les annees 90. Á la suite d'une discussion critique sur l'utilisation du coefficient Gini comme mesure d'inégalite en geographie, on evalue le niveau d'inegalitéet la polarisation sociale des revenus menagers au niveau du secteur de recensement pour les 22 plus grandes regions metropolitaines de recensement au Canada. La distribution du revenu des menages parmi les secteurs de recensement metropolitains devient en général plus idgale. De plus, le fait que la proportion des menages parmi les secteurs de recensement d revenus moyens est d la baisse dans la plupart des regions métropolitaines soutient l'idee que la classe moyenne est en diminution.     

EDUCATION AND INCOME INEQUALITY IN THE REGIONS OF THE EUROPEAN UNION*

ABSTRACT This paper provides an empirical study of the determinants of income inequality across regions of the EU. Using the European Community Household Panel dataset for 102 regions over the period 1995–2000, it analyses how microeconomic changes in human capital distribution affect income inequality for the population as a whole and for normally working people. The different static and dynamic panel data analyses conducted reveal that the relationship between income per capita and income inequality, as well as between a good human capital endowment and income inequality is positive. High levels of inequality in educational attainment are also associated with higher income inequality. The above results are robust to changes in the definition of income distribution and may be interpreted as a sign of the responsiveness of the EU labor market to differences in qualifications and skills. Other results indicate that population ageing, female participation in the labor force, urbanization, agriculture, and industry are negatively associated to income inequality, while unemployment and the presence of a strong financial sector positively affect inequality. Finally, income inequality is lower in social‐democratic welfare states, in Protestant areas, and in regions with Nordic family structures.