Jobs,Cities,and Suburbs in the Global Economy

Abstract

Intra-metropolitan shifts in the location of higher- income people increase the concentration of the poor in cities. These movements threaten the economic productivity of cities, endangering national prosperity. If we cannot utilize fully the capital, buildings, and environments that are unique to cities because of problems that arise from the concentration of the poor, then we have diminished the nation's "economic portfolio." Jobs decrease not only for city residents but for people throughout the nation, regardless of whether they live in or near a city. The author examines evidence for the premise that cities are essential to the productivity of the U.S. economy. She also examines how cities affect their suburbs. Some national policies are identified that encourage higher-income metropolitan residents to live in new suburbs. The policies include the home mortgage and property deductions from income taxes and the cost to city residents of poverty and other income redistribution programs.