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Abstract for:

Does Gentrification Displace Poor Households? An 'Identification-Via-Interaction' Approach

Sevrin  Waights,  April 2018
Paper No' CEPDP1540: | Full paper (pdf)
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Keywords: neighbourhood change, mobility, turnover, causality, cities, urban, housing

JEL Classification: R21; R23; R31; C20

Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: CEP Discussion Papers
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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.