Faster-growing cities do worse for residents

Eben Fodor, "Relationship Between Growth and Prosperity in the 100 Largest U.S. Metropolitan Areas," Economic Development Quarterly 26 (2012): 3

The take-away: This is a comparative study of the 100 largest U.S. Metropolitan areas in terms of the relationship between population growth rate and economic well-being. 11 distinct findings demonstrate an association between faster growth and poorer economic well-being.

Abstract

This study examines the relationship between growth and economic prosperity in the 100 largest U.S. metropolitan areas to determine whether certain benefits commonly attributed to growth are supported by statistical data. The annual population growth rate of each metro area from 2000 to 2009 is used to compare economic well-being in terms of per capita income, unemployment rate, and poverty rate. The study finds that faster growth rates are associated with lower incomes, greater income declines, and higher poverty rates. Unemployment rates tend to be higher in faster growing areas, though the correlation is not statistically significant at the 95% confidence level. The 25 slowest growing metro areas outperformed the 25 fastest growing in every category and averaged $8,455 more in per capita personal income in 2009. 

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