What Lies Behind America's Rising Inequality

Wage inequality does not tell the whole picture of the growing income inequality in the United States, writes Richard Florida, who examines the myriad other factors that may be driving this trend.

1 minute read

March 8, 2012, 9:00 AM PST

By Jonathan Nettler @nettsj


In a companion piece to an article we posted earlier this week, Florida looks at shifts in populations, declining rates of unionization, and the intersection of race, poverty and economic disadvantage for their role in explaining, "the inequality puzzle across America's cities."

According to Florida, the results of this inquiry, conducted with the assistance of Martin Prosperity Institute (MPI) colleague Charlotta Mellander, "suggest that full story of inequality across American cities goes beyond technology, globalization, skills and wages, and includes unions, race and poverty."

Florida sees the strongest correlation between income inequality and poverty, leading him to conclude that, "[w]e need to create more good jobs, and to develop strategies to turn the tens of millions of current low-wage, low-skill jobs into higher-wage jobs by more fully engaging worker sand leveraging their skills. But we must also build a more robust social safety net to address the persistent legacies of poverty and race which plague the truly disadvantaged."

Wednesday, March 7, 2012 in The Atlantic Cities

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

September 16, 2026 - Zachary Whalen

Passengers board an Amtrak train under a cloudy sky.

Amtrak, CN end decades-long dispute with eight-year agreement

The new operating agreement establishes an updated framework for the companies to work together, including processes to resolve disputes.

September 18, 2026 - Mass Transit

The Gross Reservoir, a large body of water surrounded by trees and mountains.

Judges permit Denver to divert 77,000 acre feet from the Colorado River for reservoir expansion

Overuse and climate change have caused the Colorado River’s water levels to plummet.

September 18, 2026 - Inside Climate News

A painted bus lane in NYC.

NYC DOT wants faster, more permanent street upgrades

The city is examining ways to build more concrete infrastructure without getting entangled in 'decades-long' projects.

5 hours ago - NYC Streetsblog

A woman looks at a utility bill.

'Something we’ve never seen before:' rising utility rates could strain city finances nationwide

Data centers, climate change and other factors have caused utility rates in the United States to increase by 38% since 2020.

6 hours ago - Smart Cities Dive

A person scuba diving in a coral reef off Guam.

Trump to overrule local leaders, lease millions of acres of America’s Pacific Island territories’ seafloors to mining companies

International law says that the Indigenous people of America’s territories have a right to prior and informed consent regarding projects that impact their countries.

7 hours ago - Grist