Localized income inequality, concentrated disadvantage and homicide

Several theories (e.g., routine activities, strain and social disorganization theories) suggest that there are effects of income inequality and concentrated disadvantage on crime. This study follows primarily the long line of social disorganization theorizing to explain the intraurban variation of homicide rates in Chicago. In addition to poverty, income inequality adds stress to individuals when they compare their situation to those around them. A localized income inequality (LII) index is implemented in a Geographic Information System (GIS) to measure the inequality between contiguous areas. Defining inequality in a localized context is important because geographic proximity permits close contacts between residents and thus reinforces the awareness of relative deprivation. This inequality index adds a new dimension to concentrated disadvantage in urban areas. The study shows that the new concentrated disadvantage measure is a strong predictor of homicide rates across three areal units of analysis in Chicago, i.e., census tracts, community areas and neighborhood clusters.