THE EFFECTS OF METROPOLITAN JOB GROWTH ON THE SIZE DISTRIBUTION OF FAMILY INCOME

This article examines how a metropolitan area's job growth affects its income distribution, using CPS data from 1979 to 1988. Metropolitan g rowth increases the poorest quintile's income by a greater percentage than for the average family. Metropolitan growth also increase the val ue of property owned by the richest quintiles. Economic development pr ograms to increase local growth will have a net progressive effect if the cost per job created is low, and these costs are financed by perso nal taxes. But programs with a high cost per job, or financed by cutti ng welfare, will reduce the net income of the poorest quintile.