The Effects of Metropolitan Job Growth on the Size Distribution of Family Income

Authors

Timothy J. Bartik, W.E. Upjohn Institute for Employment ResearchFollow

Upjohn Author ORCID Identifier

https://orcid.org/0000-0002-6238-8181

Publication Date

11-1994

Source

Journal of Regional Science 34(4): 483-501

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.

DOI

10.1111/j.1467-9787.1994.tb00879.x

Publisher

Wiley

Subject Areas

LABOR MARKET ISSUES; Wages, health insurance and other benefits; ECONOMIC DEVELOPMENT; Local labor markets; Regional policy and planning; Urban issues