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Employment Location, Neighborhood Change, and Gentrification

Jed Kolko

Public Policy Institute of California

August 10, 2011

This paper assesses the contribution of employment location to neighborhood change and to gentrification. At the tract level, average household income change from 1990 to 2000 is positively correlated both with the change and the level of average earnings for nearby jobs. I instrument for the tract-level change in average earnings with predicted change in tract average earnings based on national industry trends, confirming a causal interpretation. The relationship between employment location and neighborhood change is strongest for tracts with slower commuting speeds, suggesting that people live nearer work where the time cost of commuting is higher.

Number of Pages in PDF File: 30

Keywords: neighborhood change, gentrification, employment location, commuting

JEL Classification: R11, R12, R21, R23

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Date posted: August 22, 2010 ; Last revised: August 12, 2011

Suggested Citation

Kolko, Jed, Employment Location, Neighborhood Change, and Gentrification (August 10, 2011). Available at SSRN: https://ssrn.com/abstract=1662548 or http://dx.doi.org/10.2139/ssrn.1662548

Contact Information

Jed Kolko (Contact Author)
Public Policy Institute of California ( email )
500 Washington Street
Suite 800
San Francisco, CA 94111
United States
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