Metropolitan Hierarchy and Income Distribution

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Abstract
The objective of this article is to test what are in many ways complementary approaches to the problem of income inequality in the metropolitan hierarchy. The traditional urban economic approach sees a direct link between the distinctive industrial structure of an apex metropolis and increased levels of income inequality. The neo-Marxist perspective does not deny this link, but argues that class structure has a strong mediating influence on the distribution of income. The latter argument is supported by the fact that 66% of the total effect of hierarchical position on income inequality is mediated by the size of the underclass. Other interesting findings include the fact that while unionization directly suppresses income differentials, unionization also raises inequality by enlarging the size of the underclass. In addition, the location of an SMSA in the South does not directly raise inequality, but the massive size of the South's underclass ensures higher levels of income inequality. The policy implications of these findings are discussed.

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