The Effects of Metropolitan Job Growth on the Size Distribution of Family Income*

This article examines how a metropolitan area's job growth affects its income distribution, using CPS data from 1979 to 1988. Metropolitan growth increases the poorest quintile's income by a greater percentage than for the average family. Metropolitan growth also increases the value of property owned by the richest quintiles. Economic development programs to increase local growth will have a net progressive effect if the cost per job created is low, and these costs are financed by personal taxes. But programs with a high cost per job, or financed by cutting welfare, will reduce the net income of the poorest quintile.