Patterns of residential segregation by income are examined for a sample of incorporated suburban municipalities in 31 SMSAs. Using a variety of indicators of community fiscal wealth and government service levels, the observed patterns of residential segregation are linked to patterns of fiscal inequality. Evidence is presented documenting the extent of benefits of the present system of suburban fragmentation to the small number of the very richest communities and families in suburbs. The costs of this system are seen to fall more heavily on the poor and middle-income families.
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