Gentrification, displacement, and income trajectory of incumbents

Fuente: arXiv
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Main Author: Beauregard, Pierre-Loup
Format: Preprint
Published: 2024
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author Beauregard, Pierre-Loup
author_facet Beauregard, Pierre-Loup
contents Gentrification is associated with rapid demographic changes within inner-city neighborhoods. While many fear that gentrification drives low-income people from their homes and communities, there is limited evidence of the consequences of these changes. I use Canadian administrative tax files to track the movements of incumbent workers and their income trajectory as their neighborhood gentrifies. I exploit the timing at which neighborhoods gentrify in a matched staggered event-study framework. I find no evidence of displacement effects, even for low socioeconomic status households. In fact, families living in gentrifying neighborhoods are more likely to stay longer. I suggest that this might be related to tenant rights protection laws. When they endogenously decide to leave, low-income families do not relocate to worse neighborhoods. Finally, I find no adverse effects on their income trajectory, suggesting no repercussions on their labor market outcomes.
format Preprint
id arxiv_https___arxiv_org_abs_2403_10614
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Gentrification, displacement, and income trajectory of incumbents
Beauregard, Pierre-Loup
General Economics
Economics
Gentrification is associated with rapid demographic changes within inner-city neighborhoods. While many fear that gentrification drives low-income people from their homes and communities, there is limited evidence of the consequences of these changes. I use Canadian administrative tax files to track the movements of incumbent workers and their income trajectory as their neighborhood gentrifies. I exploit the timing at which neighborhoods gentrify in a matched staggered event-study framework. I find no evidence of displacement effects, even for low socioeconomic status households. In fact, families living in gentrifying neighborhoods are more likely to stay longer. I suggest that this might be related to tenant rights protection laws. When they endogenously decide to leave, low-income families do not relocate to worse neighborhoods. Finally, I find no adverse effects on their income trajectory, suggesting no repercussions on their labor market outcomes.
title Gentrification, displacement, and income trajectory of incumbents
topic General Economics
Economics
url https://arxiv.org/abs/2403.10614