Is the ‘Shop Around the Corner’ a Luxury or a Nuisance? The Relationship between Income and Neighborhood Retail Patterns

38 Pages Posted: 23 Sep 2010

See all articles by Jenny Schuetz

Jenny Schuetz

Brookings Institution

Jed Kolko

Public Policy Institute of California

Rachel Meltzer

affiliation not provided to SSRN

Date Written: September 23, 2010

Abstract

Affluent neighborhoods present a potentially attractive location for retail establishments because of their higher purchasing power and demand for a wide range of specialized goods and services. However, if high income households perceive retail in general – or certain types of retail, such as Big Box stores – as an undesirable use, they may be able to block commercial development through zoning and the political process. In this paper we shed light on these issues by examining the relationship between neighborhood income and several different types of retail presence for 58 large U.S metropolitan areas. We combine detailed data from the National Establishment Time-Series database on retail establishments and employment, by industry category and firm type, with Census data on ZCTA income and demographics. Results indicate that retail density varies with income for certain retail types, such as food service and chain supermarkets and drugstores. In addition, average establishment size increases with income for all retail types. Retail density increases with population density, as expected, and decreases with distance to CBD and with share of owner-occupied housing.

Keywords: retail employment, firm location, commercial land use, neighborhood income, chain stores, neighborhood amenities

JEL Classification: R00, R12, R22, R33

Suggested Citation

Schuetz, Jenny and Kolko, Jed and Meltzer, Rachel, Is the ‘Shop Around the Corner’ a Luxury or a Nuisance? The Relationship between Income and Neighborhood Retail Patterns (September 23, 2010). Available at SSRN: https://ssrn.com/abstract=1681734 or http://dx.doi.org/10.2139/ssrn.1681734

Jenny Schuetz (Contact Author)

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

Jed Kolko

Public Policy Institute of California ( email )

500 Washington Street
Suite 800
San Francisco, CA 94111
United States

Rachel Meltzer

affiliation not provided to SSRN

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
98
Abstract Views
950
rank
290,706
PlumX Metrics