How Income Inequality Makes Economic Downturns Worse

////How Income Inequality Makes Economic Downturns Worse

How Income Inequality Makes Economic Downturns Worse

Not only has income inequality surged in the United States and other advanced nations over the past couple of decades, it is worse in America’s largest, densest, most innovative and knowledge based cities and metro areas. High levels of inequality carve deep divides in our nation and its cities, lead to fraying social ties, rising crime and worsening health outcomes, and can also damage the prospects for innovation, job creation and economic growth in the long run.

A new study published in the Journal of Regional Studies by Paul Lewin, Philip Watson, and Anna Brown of the University of Idaho takes a close look at the connection between income inequality and the resilience of U.S. counties in the wake of the economic crisis.

The study covers 639 urban counties in the United States and when they went into recession between 2006 and 2010. It defined a county as entering the recession if the county experienced a decrease in per-capita personal income after it reached a business cycle pick. In 2007, 126 urban counties entered a recession, another 266 counties followed in 2008 and 180 more did in 2009. By 2010, only 50 urban counties had not fallen into a recession.

Read more at City Lab

2017-07-19T03:59:26+00:00 Tags: |