Gentrification and the Rising Returns to Skill
Cecilia Machado and
Economica, 2022, vol. 89, issue 354, 258-292
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.
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:econom:v:89:y:2022:i:354:p:258-292
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 ().