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CEP discussion paper

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


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.


Sevrin Waights

16 April 2018     Paper Number CEPDP1540

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