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Journal of Economic Geography 2004 4(4):421-437; doi:10.1093/jnlecg/lbh033
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Journal of Economic Geography, Vol. 4, No. 4, © Oxford University Press 2004; all rights reserved.

Wage inequality and urban density

Christopher H. Wheeler*

* Department of Economics. Tulane University, 206 Tilton Hall, New Orleans, LA 70118, USA email <cwheele{at}tulane.edu>

Abstract

While a sizable body of research has studied the relationship between aggregate productivity and geographic density, little work has considered how density influences the distribution of productivity across workers. This paper offers some descriptive evidence on the relationship between three measures of earnings inequality—unconditional percentile gaps, residual percentile gaps, between education-group gaps—and population density across a sample of US metropolitan areas between 1970 and 1990. On the whole, the findings reveal a significant and strikingly robust negative association between density and each measure.

Keywords: agglomeration density, urban labor markets, wage inequality,
JEL classifications: J24, J31, R12, R23
Date submitted: 4 February 2003     Date accepted: 12 March 2004


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