A PATH ANALYTIC EXPLORATION OF INCOME CLUSTERING AND LOCAL INEQUALITY

This article explores relationships among income status, economic resources, service needs, and taxing policies for municipalities and schools in 39 metropolitan suburbs of the Milwaukee SMSA. The results indicate some modest support for those who are concerned about the impact of class and income clustering, as well as government fragmentation, on inequalities regarding local tax policy. Use of path analysis to explore some of the possible alternative linkages that account for patterns of fiscal inequality among suburban municipalities shows that fiscal disparities resulting from income clustering by jurisdiction is only partially attributable to resourse and need inequities. It might also be that income status, reflecting differing service preferences, operates directly to generate inter municipal fiscal disparities.