TY - JOUR AU - Glaeser,Edward L. AU - Resseger,Matthew G. AU - Tobio,Kristina TI - Urban Inequality JF - National Bureau of Economic Research Working Paper Series VL - No. 14419 PY - 2008 Y2 - October 2008 UR - http://www.nber.org/papers/w14419 L1 - http://www.nber.org/papers/w14419.pdf N1 - Author contact info: Edward L. Glaeser Department of Economics 315A Littauer Center Harvard University Cambridge, MA 02138 Tel: 617/495-0575 Fax: 617/495-7730 E-Mail: eglaeser@harvard.edu Matthew G. Resseger Harvard University Faculty of Arts and Sciences Cambridge, MA 02138 E-Mail: resseger@fas.harvard.edu Kristina Tobio Kennedy School of Government 79 JFK St- T347 Cambridge, MA 02138 E-Mail: kristina_tobio@ksg.harvard.edu AB - What impact does inequality have on metropolitan areas? Crime rates are higher in places with more inequality, and people in unequal cities are more likely to say that they are unhappy. There is also a negative association between local inequality and the growth of both income and population, once we control for the initial distribution of skills. What determines the degree of inequality across metropolitan areas? Twenty years ago, metropolitan inequality was strongly associated with poverty, but today, inequality is more strongly linked to the presence of the wealthy. Inequality in skills can explain about one third of the variation in income inequality, and that skill inequality is itself explained by historical schooling patterns and immigration. There are also substantial differences in the returns to skill, related to local concentrations in different industries, and these too are strongly correlated with inequality. ER -