Spatial inequality refers to the unequal distribution of resources and income across geographical regions. Attributable to local differences in infrastructure, geographical features (presence of mountains, coastlines, particular climates, etc.) and economies of agglomeration, such inequality remains central to public policy discussions regarding economic inequality more broadly. Whilst jobs located in urban areas tend to have higher nominal wages (unadjusted for differences in price levels or inflation) than rural areas, the cost-of-living and availability of skilled work correlates to regional divergences in real income and output. Additionally, the spatial component of public infrastructure affects access to quality healthcare and education (key elements of human capital and worker productivity, which directly impacts economic well-being). Variation in both natural resource composition and quality of regional infrastructure are traditionally considered to be motivating factors for migration patterns between urban cities and rural areas. This, in turn, impacts the concentration of specific industries and sectors within a given area, as well as the investment choices made by local governments, thus perpetuating spatially-based disparities. However, there remain significant challenges in carrying out empirical research to quantify these disparities (particularly within a given nation, as opposed to across different nations), due to lack of region-specific datasets, the level of geographical disaggregation required to reveal such trends, as well as the inherent differences in incomes and living costs across different communities. In The Sociology of Spatial Inequality (2007), editors Linda M. Lobao, Gregory Hooks, and Ann R. Tickamyer argue that sociology's traditional question of "who gets what and why" must be expanded to "who gets what where," positioning geographic space as a fundamental dimension of social stratification alongside race, class, and gender.
Determinants
Urbanization and economies of agglomeration The relationship between population density and productivity is a significant factor affecting the difference in economic capital, cultural capital, and social capital found between cities and rural areas. In particular, the clustering of agriculture activities versus manufacturing activities informs much of the urban-rural wage gap, as industrial jobs tend to earn higher wages than their counterparts in the agricultural sector. The rate at which this clustering of jobs occurs provides a partial explanation as to why different communities undergo urbanization at different rates. From this, the theory of the core-periphery model in urban economics suggests that manufacturing tends to form the "core" of an industrial cluster, with agricultural activity tending to take place on the "periphery" of such urban formations. This affects the organizational set-up of linkages throughout supply chains, as agricultural goods and resources (directly outputted from agricultural processes) are then transported inwards towards the urbanized center of the region. Such patterns permit greater economies of scale to be realized, as different economic activities become concentrated in regions that are best suited for such work, and transportation costs can be reduced accordingly. Agglomeration economies refer to the benefits gained from such industrial clustering and city-formation. With the observed savings in transportation costs from this phenomenon being central to the study of economic geography, the positive externalities (indirect benefits gained from third-party activities) afforded by such urbanization (and the mechanisms by which they occur) remain to be of interest for academic studies and public policy considerations. Population concentration and the clustering of particular industries also allows for the pooling of workers, which results in local business needs and workers' specific skillsets becoming better aligned. Such specialization also allows for knowledge spillovers and greater exchange of ideas, as similar firms can more easily and dynamically interact with one another. This can assist in gaining a comparative advantage with respect to a particular industry or sector, which can be especially beneficial for realizing gains from trade when interacting with other communities and regions which are not as specialized, thus resulting in more geography-based disparities in economic activity.
Natural resources and geographical features Natural resource availability affects industry prevalence, as economic activities which are heavily dependent on specific natural resources tend to cluster around suitable geographical regions and climates. Localities which have a heavy reliance on agricultural jobs require favorable climate conditions for crop production and harvesting. For instance, empirical evidence from Ghana points towards the impact of such spatial inequities on the quality of natural resources available. Although employment in the northern regions of the nation is heavily reliant on the agricultural sector, there is limited access to irrigation and modern implements needed for efficient farming. Such unsustainable farming practices have led to natural resource depreciation over time, including lower quality of soil and higher rates of erosion, which in turn impacts the region's ability to continue engaging in future crop production. In addition, in the face of erratic weather patterns, global warming, and climate change, these challenges have been exacerbated by distorted rainfall patterns and increasingly frequent crop failures.
The resource curse theory suggests that an over-reliance of employment on abundance of natural resources (including forestry, fossil fuels, mineral deposits, etc.) can lead to instability and volatile prices. However, the exogenously determined geographical features of the area directly determines the region's ability to produce traditional agricultural goods and exports. Therefore, such externally determined geographical and climate features informs the composition of employment in the region.
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