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Gentrification and the Rising Returns to Skill

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  • Lena Edlund
  • Cecilia Machado
  • Maria Micaela Sviatschi

Abstract

In 1980, housing prices in large US cities rose with distance from the city center. By 2010, that relationship had reversed. We propose that the inversion can be traced to more hours worked by the skilled. Scarce non-market time downgrades the importance of residential space and upgrades that of proximity to work, factors favoring the central-city location. Geo- coded census micro data covering the 27 largest US cities and the period 1980-2010 support our hypothesis: full-time skilled workers are more likely to locate in the city center and their growth can account for the observed price changes.

Suggested Citation

  • Lena Edlund & Cecilia Machado & Maria Micaela Sviatschi, 2015. "Gentrification and the Rising Returns to Skill," NBER Working Papers 21729, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:21729
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    Cited by:

    1. repec:eee:juecon:v:104:y:2018:i:c:p:1-15 is not listed on IDEAS
    2. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2016. "Human capital in cities and suburbs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 57(1), pages 91-123, July.
    3. Alexander N. Bogin & William M. Doerner & William D. Larson, 2016. "Local House Price Growth Accelerations," FHFA Staff Working Papers 16-02, Federal Housing Finance Agency.
    4. repec:fip:fedpei:00020 is not listed on IDEAS
    5. Hwang, Jackelyn & Lin, Jeffrey, 2016. "What Have We Learned About the Causes of Recent Gentrification?," Working Papers 16-20, Federal Reserve Bank of Philadelphia.
    6. repec:taf:houspd:v:27:y:2017:i:3:p:468-471 is not listed on IDEAS
    7. Behrens, Kristian & Boualam, Brahim & Martin, Julien & Mayneris, Florian, 2018. "Gentrification and pioneer businesses," CEPR Discussion Papers 13296, C.E.P.R. Discussion Papers.
    8. repec:eee:regeco:v:66:y:2017:i:c:p:52-73 is not listed on IDEAS
    9. repec:kap:jrefec:v:58:y:2019:i:2:d:10.1007_s11146-017-9643-y is not listed on IDEAS

    More about this item

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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