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Urban Income Distribution, City Size, and Urban Growth: Some Further Evidence

Economics, Northern Illinois University, Dekalb, Illinois

A recent study by Haworth, Long, and Rasmussen (1978) developed the monopoly hypothesis and presented supporting empirical evidence that suggest the Gini measure of total income inequality rises with urban size and growth. This study extends the monopoly hypothesis to apply to the inequality in racial earnings. After controlling for other important factors in a regression analysis on the 125 SMSAs with 1970 populations exceeding 250,000, our results affirm the extended monopoly hypothesis that increasing urban size and growth manifest independent and direct inequality generating effects on family and male racial earnings.

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