Metropolitan growth and community disparities: Insights from the state of New Jersey in the US

An increasing concern among regional growth policymakers who aim to promote balanced growth is the widening economic disparity among the communities in metropolitan areas. But the causes and consequences of such disparities have not been fully addressed in planning and public policy literature. Using the longitudinal data (1970–2009) for 566 municipalities in the State of New Jersey in US, this study shows that overall metropolitan economic disparity is attributable to interjurisdictional economic disparity. The inter-jurisdictional economic disparity arises from the disproportionate distribution of human capital and minority populations across municipalities. Our study also confirms that housing market constraints, municipal taxes, and public expenditures play a significant role in inter-jurisdictional economic disparity and polarization. Since narrowing interjurisdictional disparity is imperative for community stability and regional economic competitiveness, we discuss the policy implications for reducing inter-jurisdictional disparity within metropolitan areas.

► We identify economic disparities among local municipalities in New Jersey.
► Metropolitan economic disparities come from inter-jurisdictional disparities.
► Local municipalities compete for the tax base and economic growth.
► The key determinants for economic disparities are minorities and human capital.
► The housing market and municipal taxes are significant to economic disparities.