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How does diversity of employment affect the welfare(income per person) in cities of America - Dissertation Example

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HOW DOES DIVERSITY OF EMPLOYMENT AFFECT THE WELFARE (INCOME PER PERSON) IN MAJOR 30 CITIES OF THE U.S. A comprehensive review of both economic theory as well as several studies pertaining to the topic of diversity of employment and welfare (income per person) has been undertaken and relevant variables for explaining welfare have been determined…
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How does diversity of employment affect the welfare(income per person) in cities of America
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How does diversity of employment affect the welfare(income per person) in cities of America

The initial variables included in the model were average education level of population, median age, unemployment rate, income tax rate and coastal city and a dummy variable equal to identify cities with welfare. Additional variables for inclusion in the model are still being considered, for example, transfer payments. It is important to hypothesize the expected relationship between the independent variables and the income per person. The higher average education level of the population in a city should increase the level of welfare, since, education is known to have a salutary effect on the income of a person. For median age, one would expect the welfare to increase up to a certain point and then begin to decrease after a certain peak age. This certain age, perhaps, between the ages of 18-50, as suggested in the literature, but, it is difficult to determine the sign of the coefficient for median age. It is possible there is a non linear relationship between welfare and age, with income increasing with age up to a certain point and then beginning to decrease after a certain age. A higher unemployment rate should lead to decrease in income, based on theory. ... Read More
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