Subsidizing Capital and Expanding Low-Wage Work

2016 ◽  
Author(s):  
David J. Karjanen
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Inner City ◽  
Urban Renewal ◽  
Federal Funding ◽  
Economic Policies ◽  
Enterprise Zones ◽  
Federal Level ◽  
Wage Work ◽  
City Revitalization

The first chapter looks at the background of San Diego’s inner city revitalization, the targeting and subsidization of specific industries, and the politics involved in the process. Since the 1970s, growing inequality, declining economic mobility, and an erosion of standardized work and wages for most Americans has reshaped the postwar U.S. economy. The dominant shift throughout the 1980s and 1990s saw more neoliberal economic policies adopted at the federal level and below. These coincided or overlapped with urban devolution, reduced federal funding for urban renewal programs, a shift toward more conservative-favored efforts like enterprise zones, and the elimination of welfare as a system of income supports. All of these changes resulted in growing income inequality and greater economic and labor market polarization overall, and they left many inner-city residents isolated and with high rates of joblessness.

scholarly journals Disruption, destruction and the creation of ‘the inner cities’: the impact of urban renewal on industry, 1945–1980

Urban History ◽  
2016 ◽  
Vol 44 (3) ◽  
pp. 492-515 ◽  
Author(s):  
ALISTAIR KEFFORD
Keyword(s):  
Inner City ◽  
Urban Renewal ◽  
Economic Activity ◽  
Policy Makers ◽  
Industrial Activities ◽  
Inner Cities ◽  
The Creation ◽  
Post War ◽  
The Impact

ABSTRACT:This article examines the impact of post-war urban renewal on industry and economic activity in Manchester and Leeds. It demonstrates that local redevelopment plans contained important economic underpinnings which have been largely overlooked in the literature, and particularly highlights expansive plans for industrial reorganization and relocation. The article also shows that, in practice, urban renewal had a destabilizing and destructive impact on established industrial activities and exacerbated the inner-city problems of unemployment and disinvestment which preoccupied policy-makers by the 1970s. The article argues that post-war planning practices need to be integrated into wider histories of deindustrialization in British cities.

scholarly journals Market Imperfections and Income Distribution

2016 ◽  
Vol 16 (2) ◽  
pp. 1147-1167
Author(s):  
Ensar Yılmaz
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Income Distribution ◽  
Labor Markets ◽  
Wage Rate ◽  
Consumption Patterns ◽  
Market Imperfections ◽  
Luxury Goods ◽  
Sector Model ◽  
Two Sectors

Abstract This paper aims to search links between market imperfections and functional income distribution. For this purpose we construct a two-sector model – wage goods and luxury goods producing sectors – incorporating imperfections of the product and labor markets under income inequality. In a structure with interdependent and partially monopolistic and competitive markets, we analytically trace up the effects of the changes in power relations proxied by the degree of mark-ups in the product and labor market. The model shows that price and wage mark-ups in two sectors have crucial income distribution implications for the agents in the economy to varying extents. It also demonstrates the effect of the existence of the differentiated consumption patterns arising from income inequality on income distribution. Furthermore, it seems that unemployment level creates externalities on wage rate and on corporate taxes of firms.

scholarly journals Monetary Policy and Inequality under Labor Market Frictions and Capital-Skill Complementarity

2021 ◽  
Vol 13 (2) ◽  
pp. 292-332
Author(s):  
Juan J. Dolado ◽  
Gergő Motyovszki ◽  
Evi Pappa
Keyword(s):  
Monetary Policy ◽  
Labor Market ◽  
Income Inequality ◽  
New Keynesian ◽  
Labor Income ◽  
Skilled Workers ◽  
Investment Demand ◽  
Multiplier Effect ◽  
Distributional Consequences ◽  
Amplification Mechanism

We provide a new channel through which monetary policy has distributional consequences at business cycle frequencies. We show that an unexpected monetary easing increases labor income inequality between high-skilled and less-skilled workers. To rationalize these findings, we build a New Keynesian DSGE model with asymmetric search-and-matching (SAM) frictions and capital-skill complementarity (CSC) in production. We show that CSC on its own introduces a dynamic demand amplification mechanism: the increase in high-skilled employment after a monetary expansion makes complementary capital more productive, encouraging a further rise in investment demand and creating a multiplier effect. SAM asymmetries magnify this channel. (JEL E32, E52, E24, E12, E25, J63)

THE DRIVERS OF LABOR INCOME INEQUALITY — A LITERATURE REVIEW

2013 ◽  
Vol 04 (01) ◽  
pp. 1350004 ◽  
Author(s):  
RAFAL KIERZENKOWSKI ◽  
ISABELL KOSKE
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Literature Review ◽  
General Trend ◽  
Labor Income ◽  
Labor Market Policies ◽  
Biased Technological Change ◽  
Key Drivers ◽  
Main Determinants

Despite a general trend of increasing labor income inequality, there have been differences in the timing, intensity and even direction of these changes across OECD countries. These stylized facts have led to numerous studies about the main determinants of labor income inequality and, as a result, a significant revision of the previous consensus about the key drivers. The most researched channels include skill-biased technological change, international trade, immigration, education as well as the role of labor market policies and institutions.

REDUCING INCOME INEQUALITY WHILE BOOSTING ECONOMIC GROWTH: CAN IT BE DONE? EVIDENCE FROM OECD COUNTRIES

2014 ◽  
Vol 59 (01) ◽  
pp. 1450001 ◽  
Author(s):  
PETER HOELLER ◽  
ISABELLE JOUMARD ◽  
ISABELL KOSKE
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Income Inequality ◽  
Oecd Countries ◽  
Gdp Per Capita ◽  
Labor Market Institutions ◽  
Policy Reforms ◽  
Market Institutions ◽  
Trade Off ◽  
Per Capita

This paper identifies inequality patterns across Organisation for Economic Co-operation and Development (OECD) countries and provides new analysis of their policy and non-policy drivers. One key finding is that education and anti-discrimination policies, well-designed labor market institutions and large and/or progressive tax and transfer systems can all reduce income inequality. On this basis, the paper identifies several policy reforms that could yield a double dividend in terms of boosting GDP per capita and reducing income inequality, and also flags other policy areas where reforms would entail a trade-off between both objectives.

scholarly journals Relationships between young adults’ housing tenure, elements of perceived job security and social capital in Britain

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oluwadamilola Aguda ◽  
Obas John Ebohon
Keyword(s):  
Social Capital ◽  
Young Adults ◽  
Urban Renewal ◽  
Social Cohesion ◽  
Job Security ◽  
Housing Tenure ◽  
Sustainable Communities ◽  
Economic Policies ◽  
Content Type ◽  
The Uk

Purpose Against the backdrop of the changing trends in tenure in the UK housing system, young adults are faced with different situations that continue to shape their housing consumption and decisions. The purpose of this paper is to investigate the relationships amongst young adults’ housing tenure, social capital and elements of perceived job security in Britain. Socio-psychological dimension of housing tenure decisions has been receiving attention by housing market analysts and practitioners seeking deeper understandings of the UK housing market dynamics, particularly in the wake of changing tastes and preferences of young people concerning housing decisions across major cities of the world. Design/methodology/approach A quantitative approach has been applied to the harmonised version of the British Household Panel Survey (BHPS) from 2001 to 2015. Findings The authors discovered that British young adults’ homeownership decisions are increasingly influenced by social capital and elements of perceived job insecurity, depending on their tenure of origin. Furthermore, this study will significantly enhance the understanding of tenure shifts amongst young adults in the UK and provide property developers, local authorities and central governments the knowledge and information to guide economic policies, urban renewal towards achieving better social cohesion and sustainable communities. Originality/value Very little has been done to investigate the contributions of social capital formation, for example, neighbourhood or social integration and social relations and elements of perceived job security on housing tenure transitions among British young adults. This study will further provide property developers, local authorities and central governments the knowledge and information to guide economic policies, urban renewal towards achieving better social cohesion and sustainable communities.

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