This paper examines the geographic variation in wage inequality and income inequality across US metros. The findings indicate that the two are quite different. Wage inequality is closely associated with skills, human capital, technology and metro size, in line with the literature, but these factors are only weakly associated with income inequality. Furthermore, wage inequality explains only 15% of income inequality across metros. Income inequality is more closely associated with unionization, race and poverty. No relationship is found between income inequality and average incomes and only a modest relationship between it and the percentage of high-income households.

Citation:

Florida, R., and Mellander, C. (2014). The Geography of Inequality: Difference and Determinants of Wage and Income Inequality across US Metros. Regional Studies, 1–14. doi:10.1080/00343404.2014.884275