Inequality in the Creative City: Is There Still a Place for “Old-Fashioned” Institutions?

Abstract

Creative class theory, now a mainstay of local economic development policy, has a dark side: Cities that have a larger creative talent pool are also likely to have greater income inequality. Richard Florida, in acknowledging this disturbing trend, has assigned a new role to the creative class—helping low-wage service sector employees harness and express their creative energy and talent. In this article, the authors explore the complex relationship between creative workers and earnings inequality in the context of the broader urban economy. Drawing on this analysis and an expansive body of literature on urban income inequality, the authors propose an alternative set of policy actions aimed at mediating creativity and inequality through a deepening of traditional labor market institutions and legislative supports. In contrast to claims that these are obsolete solutions in the new economy, the authors argue they are necessary for the long-term sustainability of the creative economy.