Economic growth might both increase and decrease income inequality, also at the city level. This paper examines the income-inequality relationship within US metropolitan areas and finds that it changes over time. A higher average income per capita level was associated with a lower inequality level in earlier years, but this association vanished later. For the 1980-2000 panel, increases in the average income per capita are associated with decreases in inequality. In contrast, increases in the average income per capita are asso-ciated with increases in inequality in the 2006-2016 panel. The obtained results hint at polarization re-sulting from technological change substituting middle-skill routine tasks.
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