Abstract
The impact of economic restructuring in Cleveland was felt by more than those who either lost or changed jobs. The positive and negative effects of restructuring spilled into neighborhoods where workers live, resulting in marked changes in the incidence of poverty and the relative cost of housing. We present a model of the connection between the regional economy and neighborhoods and present data that highlights aspects of that model. We trace the impact of restructuring from 1979 to 1987 through quarterly changes in the distribution of earnings to indicators of neighborhood well being, poverty, and housing values. We hypothesize that the transmission mechanism between the workplace and neighborhood is the occupational characteristics of the residential work force. The analysis of changes in the earnings distribution is done for Cleveland's PMSA, and the remainder of the article uses census tract data.
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