iajimi/nyc-income-inequality

Final project on income inequality in New York City in 2016 for my Spring 2018 Data Bootcamp class.

Data Bootcamp Final Project

This project was completed by Ines Ajimi in partial fulfilment of ECON-UB.0232, Data Bootcamp, Spring 2018. I certify that the NYU Stern Honor Code applies to this project. In particular, I have: Clearly acknowledged the work and efforts of others when submitting written work as our own. The incorporation of the work of others–including but not limited to their ideas, data, creative expression, and direct quotations (which should be designated with quotation marks), or paraphrasing thereof– has been fully and appropriately referenced using notations both in the text and the bibliography. And I understand that: Submitting the same or substantially similar work in multiple courses, either in the same semester or in a different semester, without the express approval of all instructors is strictly forbidden. I acknowledge that a failure to abide by NYU Stern Honor Code will result in a failing grade for the project and course.

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Income inequality has been on the rise since the 1970s and is considerably larger in the U.S. than in other OECD nations. In 2014, "Capital in the Twenty-First Century", a detailed study of inequality in income and wealth, posited that this increase may have been primarily due by increased compensation at the higher rungs of private firms. The 'working rich', as Piketty calls them to differentiate them from individuals whose wealth is primarily inherited, are then able to further accrue wealth through investments. The high rate of return of capital (e.g. investment portfolios) of the wealthiest households and the stagnant average wage growth have deepened those differences in income (Piketty & Saez 2003, 2014).

Manhattan, as one of the biggest and the most unequal cities in the U.S., is therefore a particularly interesting area to study. This project thus focuses on the geographic distribution of income inequality in NYC, and more specifically Manhattan, at a census tract level. Using the 5 year American Community Survey, I look at factors usually thought to explain wage differentials such as education, sectors, industry, and other factors (primarily demographic) to try to shed light on some of these income distribution patterns. I conclude with a 'tale of two census tracts', which vividly illustrates the deep rifts present in the city.