How Does Income Inequality Affect Community Economic Resilience? Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/mk61rk502

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  • The Great Recession, which resulted from the burst of housing bubble and officially lasted from December 2007 to June 2009, started as a national recession in the U.S. and then affected countries across the world. Economies reacted differently to this recession and those systems that lost fewer jobs and/or recovered more quickly are considered to be resilient. Rising income inequality might pose an explanation for what is behind the Great Recession and why regions react differently, as it has been considered one of the structural causes of the crisis. In this research, I explore the relationship between income inequality and economic resilience for U.S. counties. Specifically, I examine the relationship between three measures of inequality and income distribution – the Gini coefficient, poverty rate, share of aggregate income held by households earning $200,000 or more – and economic resilience measures developed by Han and Goetz (2015). Results show that, controlling for county-level capital stocks and economic structure variables, income inequality does not significantly predict drop, rebound or economic resilience.
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