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Does gentrification displace poor households? An 'identification-via-interaction' approach

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  • Sevrin Waights

Abstract

My theoretical model motivates an 'identification-via-interaction' (IvI) approach that separates the causal impact of gentrification on poor exits from endogenous channels. In the empirical analysis, I create a measure of gentrification as the increase in the share of neighbourhood residents who hold a university degree based on the UK Census for 1991, 2001 and 2011. Applying the IvI approach for a sample of private renters from the British Household Panel Survey, 1991-2008, I find that gentrification results in displacement. The IvI approach has general applications in estimating causal relationships where variables are highly endogenous.

Suggested Citation

  • Sevrin Waights, 2018. "Does gentrification displace poor households? An 'identification-via-interaction' approach," CEP Discussion Papers dp1540, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp1540
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    More about this item

    Keywords

    neighbourhood change; mobility; turnover; causality; cities; urban; housing;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General

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