Abstract

Using data from a survey of city and county managers, the 2014 ICMA Economic Development Survey, the effect of local area inequality on the perception that it is a barrier to development was estimated with ordered logit regression models. At most, there was weak evidence to suggest that higher inequality raised perceptions of its importance as a barrier to local development in poorer areas. However, estimates indicated that concerns about inequality were significantly higher in jurisdictions with larger African American and Hispanic populations. Compared to other potential barriers, income inequality was categorized with relatively low importance as a barrier to economic development.

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