Abstract
ABSTRACT: Explanations for dissimilarities in intracity income inequality have been dominated by Kuznets's hypothesis. It is argued that this identifies statistical associations rather than causal relationships. An alternative model is presented which focuses on the ideas of James O'Connor and Claus Offe concerning the effects of employers' market power on the income of their workers. The model is tested for 274 mid-Atlantic cities in 1980. The explanatory power and main propositions of the model are confirmed and the effects of differences in human capital are shown to be weak. Suggestions are made for improving the basic formulation which is offered.
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