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The Rising Value of Time and the Origin of Urban Gentrification
In recent decades, gentrification has transformed American central city neighborhoods. I estimate a spatial equilibrium model to show that the rising value of high-skilled workers’ time contributes to the gentrification of American central cities. I show that the increasing value of time raises the cost of commuting and exogenously increases the demand for central locations by high-skilled workers. While change in the value of time has a modest direct effect on gentrification of central cities, the effect is substantially magnified by endogenous amenity improvement driven by the changes in local skill mix.
Cite this item
Yichen Su, The Rising Value of Time and the Origin of Urban Gentrification, Federal Reserve Bank of Dallas, Working Papers 1913, 31 Oct 2019.
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
Keywords: Gentrification; Value of time; Amenities; Central cities
This item with handle RePEc:fip:feddwp:1913
is also listed on EconPapers
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