Showing posts with label Income Inequality. Show all posts
Showing posts with label Income Inequality. Show all posts

Thursday, April 2, 2009

Can Transportation Investment Reduce Income Inequality

Interesting little article from the Economic Policy Institute about a potential effect of investing in transportation and infrastructure development in the American Recovery and Reinvestment Act of 2009. Namely, that it could reduce income inequality. Ethan Pollack explains:
According to research that will be presented at an upcoming EPI event, workers in jobs created or supported by these investments are less likely to have a college degree and more likely to be union members compared to workers in the overall economy. Despite employing workers with less education on average, fewer of these jobs are low-wage jobs. Green investments—including mass transit, but also energy efficiency, electric grid, etc.—result in very similar job characteristics and are thus equally effective at reducing wage inequality.
I don't really have more details than that. It would probably be a small effect. But interesting. Here is the graph, reprinted from the EPI:

Transportation Investment Jobs Compared to Overall Economy.  Reprinted from the EPI, at http://www.epi.org/page/-/img/20090402snapshot.jpg