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.

---

16 April 2018     Paper Number CEPDP1540

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

This CEP discussion paper is published under the centre's Urban programme, Neighbourhoods programme.

This publication comes under the following theme: Housing