The Effects of Gentrification on the Well-Being and Opportunity of Original Resident Adults and Children

Brummet, Quentin; Reed, Davin

doi:10.21799/frbp.wp.2019.30

Working Paper

The Effects of Gentrification on the Well-Being and Opportunity of Original Resident Adults and Children

Abstract: We use new longitudinal census microdata to provide the first causal evidence of how gentrification affects a broad set of outcomes for original resident adults and children. Gentrification modestly increases out-migration, though movers are not made observably worse off and neighborhood change is driven primarily by changes to in-migration. At the same time, many original resident adults stay and benefit from declining poverty exposure and rising house values. Children benefit from increased exposure to higher-opportunity neighborhoods, and some are more likely to attend and complete college. Our results suggest that accommodative policies, such as increasing the supply of housing in high-demand urban areas, could increase the opportunity benefits we find, reduce out-migration pressure, and promote long-term affordability

Keywords: Gentrification; neighborhood change; migration; mobility;

JEL Classification: J62; R11; R21; R23; R28;

https://doi.org/10.21799/frbp.wp.2019.30