Determinants of Income Inequality in US Nonmetropolitan Tourism- and Recreation-Dependent Communities

This study examines the determinants of income inequality in nonmetropolitan tourism- and recreation-dependent, manufacturing-dependent, and farming-dependent communities. Earnings in tourism and recreation industry, race, and region show a positive relationship with income inequality. Median household income and manufacturing employment are negatively related to income inequality. Tourism- and recreation-related variables (tourism and recreation employment, and tourism and recreation earnings) are identified as factors that contribute to income inequality. Race dualism and tourism- and recreation-dependent communities also contribute to increases in income inequality. Results of this study show that income inequality in selected U. S. nonmetropolitan communities increased during 1990 and 2000. The need for additional research on income inequality associated with tourism and recreation development is discussed. Characteristics of the labor market in the tourism and recreation industry and economic structures of the communities will be main issues in investigating the relationship between tourism and recreation development and income inequality.