Income and Poverty across SMSAs: A Two-Stage Analysis

Two popular explanations of urban poverty are the "welfare-disincentive" and "urban-deindustrialization" theories. Using cross-sectional Census data, we develop a two-stage model to predict an SMSAs median family income and poverty rate. The model allows the city's welfare l...

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Bibliographic Details
Published in:Eastern economic journal 1993-01, Vol.19 (1), p.43-58
Main Authors: Leekley, Robert M., Seeborg, Michael C.
Format: Article
Language:English
Subjects:
Cities
Coefficients
Cost of living
Deindustrialization
Economic growth
Economic theory
Education
Employment
Employment statistics
Families & family life
Family income
Family structure
Impacts
Labor market
Manufacturing
Median family income
Noncitizens
Personnel policies
Poverty
Poverty rates
Public assistance
SMSA
Social classes
Statistical analysis
Studies
Under class
Wages & salaries
Welfare
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Summary:Two popular explanations of urban poverty are the "welfare-disincentive" and "urban-deindustrialization" theories. Using cross-sectional Census data, we develop a two-stage model to predict an SMSAs median family income and poverty rate. The model allows the city's welfare level and industrial structure to affect its median family income and poverty rate directly. It also allows welfare and industrial structure to affect income and poverty indirectly, through their effects on family structure, education, and employment. The results give limited support to both the welfare-disincentive and urban-deindustrialization explanations of urban income levels and poverty rates.
ISSN:0094-5056
1939-4632