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Income segregation is the separation of various classes of people based on their income. For example, certain people cannot get into country clubs because of insufficient funds. Another example of income segregation in a neighborhood would be the schools, facilities and the characteristics of a population. Income segregation can be illustrated in countries such as the United States, where racial segregation is a major cause of income inequality.[1]
Income segregation is associated with greater inequality in educational attainment between classes.[2] Income segregation is highly correlated with income inequality, racial segregation and segregation of poverty and affluence. Also, the correlation of the income segregation between schools has been documented and is an increasing trend with little or no exception.[2]
Income segregation is also dependent on other variables which are observable within society – income inequality, spatial segregation of affluence and poverty (which describes the isolation of the upper- or low-income households and other classes), and racial segregation. Also, inequality within the educational system of a given class is associated to so extend with the income segregation.[3][2]
The importance of measuring income segregation is given by the different redistribution of outcomes across the society, uneven within different income classes. For the upper-income classes these differences can even be positive, often giving them better social and educational background or more pleasing environments in their metropolitan area. These neighborhoods can make themselves better off in comparison to lower-income ones, mostly due to public policy (and the difference among the tax base each class pays). As a result, income segregation expands because upper-income communities have these advantages and benefit from them.[2]
Metropolitan income segregation in the US grew constantly between 1970 and 2000; it was fastest in the 1980s. The growth was stronger for black families than white ones as well as the covariance of income inequality and the segregation of poverty and affluence.[4][2]
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