Trends in the Level and Distribution of Income in Metropolitan Areas, 1959-1969. Discussion Paper 316-75.

An overview of the level and distribution of income for a sample of Standard Metropolitan Statistical Areas (SMSAs) during the period 1959-1969, using data on pretax pretransfer incomes published by the Internal Revenue Service, is presented in this paper. Several results are described. (1) The level and distribution of income vary widely among the SMSAs. (2) A majority of the SMSAs experience an increase in inequality during the 1959-1969 period. (3) Differences among the SMSAs in both income level and degree of income inequality narrows. (4) Higher rates of growth of income are associated with smaller increases in inequality. While this paper is descriptive, the author hopes that the data set will be useful for testing theories that relate the income level and income distributions of metropolitan areas to their urban problems--for example, whether increases in SMSA crime rates or the incidence of urban riots or urban fiscal problems can be explained by changes in the level and distribution of metropolitan area incomes. (Author/AM)