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.
16 April 2018 Paper Number CEPDP1540
This CEP discussion paper is published under the centre's Urban programme.