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Cities, growth and poverty - Evidence paper 2: Data analysis

Cities, growth and poverty - Evidence paper 2: Data analysis

Paul Sissons, Neil Lee & Ceri Hughes
07 February 2014

This report outlines the results from the data analysis phase of the research. The aim of this phase was to examine empirically the link between growth and poverty in British cities. To do this we have assembled a dataset to assess the economic and poverty-related performance of the Travel-To-Work-Areas of the 60 largest British cities over the period 2001 to 2010 (with most of the analysis focusing on the period from 2001 to 2008). We consider both employment and output (Gross Value Added, or GVA) growth and two poverty proxies. These proxies utilise administrative data on benefits which correlate strongly with income based poverty definitions. In addition to this evidence paper, which considers the evidence linking cities, economic growth and poverty, evidence papers relating to the literature review (Evidence Paper 1) and case studies (Evidence Paper 3).

The aims of this paper are to:

  1. ​​​​​​​​​Outline broad national trends in growth and poverty, providing background to the city-level analysis which is presented;
  2. Examine patterns of growth in British cities between 2001 and 2010 and consider some of the drivers of this growth;
  3. Analyse how different forms of growth are linked to poverty reduction;
  4. Explore how growth affects other factors, such as wages and housing costs, which potentially impact in poverty rates.

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