Household Mobility, Networks, and Gentrification of Minority Neighborhoods in the United States

Fernando Ferreira, Jeanna Kenney and Benjamin Smith

Journal of Labor Economics, 2024, vol. 42, issue S1, S61 - S94

Abstract: We investigate the impact of recent gentrification shocks on minority neighborhoods in the 50 largest US labor markets. We show that household moves from a given neighborhood are concentrated to few destinations with similar minority shares and strong network ties, but those neighborhoods are farther away from downtown. Gentrification affects Black neighborhoods by raising house prices, reducing the proportion of Black households, and increasing the share of movers going to neighborhoods with network ties. However, gentrification has negligible effects on Hispanic neighborhoods. Overall labor market area segregation decreases after a gentrification shock because highly Black neighborhoods become less segregated.

Date: 2024
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