Economics at your fingertips  

Gentrification and the Rising Returns to Skill

Lena Edlund, Cecilia Machado and Maria Sviatschi

Economica, 2022, vol. 89, issue 354, 258-292

Abstract: Suburbanization—thriving suburbs surrounding increasingly impoverished inner cities—dominated the US postwar urban landscape. However, already in the 1980s there were signs of urban rejuvenation, and the decades since have seen gentrification replace urban decay. In this paper, we argue that this trend reversal stems from the rise in hours worked by high‐income households, epitomized by the dual‐earner household replacing the breadwinner–housewife household. Using a Bartik‐style share shifter for skilled labour demand and analysing restricted‐use Census microdata covering the 27 largest US cities for the period 1980–2010, we find support for our hypothesis. ‘Low‐leisure‐high‐skill’ households showed a pronounced proclivity towards central city location and their estimated effect on housing prices can account for the observed emergence of centrality as an increasingly prized amenity.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0013-0427

Access Statistics for this article

Economica is currently edited by Frank Cowell, Tore Ellingsen and Alan Manning

More articles in Economica from London School of Economics and Political Science Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2023-09-02
Handle: RePEc:bla:econom:v:89:y:2022:i:354:p:258-292