Geographic earnings inequality by race, 1960–2016

Abstract

AbstractGeographic inequality and racial disharmony are considered major factors in America's political divergence. This paper calculates geographic earnings inequality from 1960 to 2016 separately by race. From 2000 to 2016, White geographic inequality was significantly higher, and Hispanic geographic inequality was significantly lower, than Black and Asian geographic inequality. White geographic inequality rose from 1980 to 2008. Black and Hispanic geographic inequality fell from 1960 to 1980. Rural controls explain substantial shares of White geographic inequality in all years. Region and rural controls account for large shares of Black geographic inequality, especially from 1960 to 1990. Post‐1990, geographic inequality changes are largely explained by changes in overall earnings inequality, but 1960–1990 changes are not. Between‐race differences in geographic inequality translate into high‐income metropolitan statistical areas having had, since 1980, significantly smaller shares of Whites among their low‐income residents.