Gentrification, gun violence, and drug markets

I demonstrate the linkage between gentrification and gun violence. As the underlying mechanism, I focus on gentrification’s displacement effect on local drug markets. Using two-way fixed effects differences-in-differences estimators, I show the gentrification of one block increases violence across the surrounding neighborhood. I find that some 2400 (8%) of Philadelphia’s shootings between the years 2011 and 2020 can be attributed to spillover effects from the gentrification of drug blocks. This effect is nearly ten times stronger than that observed on blocks without high levels of drug crime. This study also contributes a new empirical measurement of gentrification drawn primarily from property sales, along with building, zoning, and alteration permit issuance and utilizes a novel nearest-neighbor network approach to identify spatial spillover effects.