Thursday, 28 August 2008

Low-income? No Car? Expect To Pay More For Groceries

�Households located in pitiful neighborhoods pay off more for the like items than people living in loaded ones, according to a new study in the Journal of Consumer Research.



Author Debabrata Talukdar (Columbia University) examines the impact of what has been dubbed the "ghetto tax" on low-income individuals. His study found that the critical factor in how lots a family spends on groceries is whether it has access to a car. "Arguably, as the bigger, more cost-efficient stores move out, the poor increasingly are likely to find themselves choosing betwixt traveling further to purchase nutritious, competitively priced groceries or paying inflated prices for inferiority, processed foods at nook stores," Talukdar writes.



According to the findings, those without access to cars - which are exclusively poor households, just include only 40 percent of poor households - pay higher prices for groceries than households with access to a