Three theses that attempt to explain the rise of concentrated poverty and the growth of racial inequality in urban areas are examined in this study: (1) education/job mismatch and social class transformation, (2) labor market segmentation, and (3) industrial decline and uneven economic development. The author tests the undergirding assumptions of these theses for the Detroit metropolitan area using 1970 and 1980 census tract data. Although data provide some support for each thesis, the industrial decline and uneven economic growth view emerges as the strongest explanation for the growth of concentrated poverty and racial inequality in the Detroit area.
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