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Spatial inequality

Spatial inequality refers to the unequal distribution of income and resources across geographical regions.[1] Attributable to local differences in infrastructure,[2] geographical features (presence of mountains, coastlines, particular climates, etc.) and economies of agglomeration,[3] such inequality remains central to public policy discussions regarding economic inequality more broadly.[1]

Whilst jobs located in urban areas tend to have higher nominal wages (unadjusted for differences in price levels or inflation) than rural areas, the cost-of-living and availability of skilled work correlates to regional divergences in real income and output.[3] Additionally, the spatial component of public infrastructure affects access to quality healthcare and education (key elements of human capital and worker productivity, which directly impacts economic well-being).[4]

Variation in both natural resource composition and quality of regional infrastructure are traditionally considered to be motivating factors for migration patterns between urban cities and rural areas.[5] This, in turn, impacts the concentration of specific industries and sectors within a given area, as well as the investment choices made by local governments, thus perpetuating spatially-based disparities.[5] However, there remain significant challenges in carrying out empirical research to quantify these disparities (particularly within a given nation, as opposed to across different nations), due to lack of region-specific datasets,[6][7] the level of geographical disaggregation required to reveal such trends,[8] as well as the inherent differences in incomes and living costs across different communities.[3][9]

  1. ^ a b Ravi, K.; Venables, A. J. (2005). Ravi, K.; Venables, A. J. (eds.). Spatial Inequality and Development. Oxford University Press. pp. 3–12. doi:10.1093/0199278636.003.0001. ISBN 9780191602191.
  2. ^ Pandey, Bhartendu; Brelsford, Christa; Seto, Karen C. (2022). "Infrastructure inequality is a characteristic of urbanization". Proceedings of the National Academy of Sciences. 119 (15): e2119890119. doi:10.1073/pnas.2119890119. PMC 9169802. PMID 35377809.
  3. ^ a b c Romero, Jessie and Schwartzman, Felipe F. Inequality in and across Cities. October 2018, No. 18-10. Federal Reserve Bank of Richmond Economic Brief.
  4. ^ Lall, S. V.; Chakravorty, S. (2005). "Industrial Location and Spatial Inequality: Theory and Evidence from India" (PDF). Review of Development Economics. 9 (1): 47–68. doi:10.1111/j.1467-9361.2005.00263.x. S2CID 14489250.
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