Article: Changes in Income Inequality within U.S. Metropolitan Areas.(Review)

By Janice F. Madden.

Kalamazoo, MI: W. E. Upjohn Institute for Employment Research, 2000. Pp. xiii, 199 $15.00 (paper).

Feldstein (1998) argues that the attention economists pay to income inequality is somewhat curious. From a Pareto perspective, changes in the distribution of income that leave one group better off without hurting any other groups are an improvement. If the increase in income inequality that occurred during the 1980s was of this sort, then the case for policy intervention is weak. According to Feldstein, the issue that economists should try to understand better is poverty. If policies can be devised that lift groups out of poverty, then ...

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