Accounting for Central Neighborhood Change, 1980-2010

55 Pages Posted: 16 Sep 2016 Last revised: 22 Jun 2020

See all articles by Nathaniel Baum-Snow

Nathaniel Baum-Snow

University of Toronto - Rotman School of Management

Daniel A. Hartley

Federal Reserve Bank of Chicago

Date Written: November 29, 2019

Abstract

After 1980-2000 population decline and economic stagnation, downtown neighborhoods in most large US cities experienced 2000-2010 population growth and gentrification. Stark racial differences in valuations of downtown amenities and suburban labor market opportunities among those with less than college that only emerged after 2000 are the primary drivers of these downtown neighborhood dynamics. As college-educated whites moved in, increases in valuations of downtown amenities encouraged other whites to remain in downtowns, a reversal from prior decades. Continued departures of less than college educated minorities were driven both by relative improvements in suburban employment opportunities for this group and their continued declines in valuations of downtown amenities. Our evidence highlights the importance of racial differences in valuations of potentially endogenous local amenities for understanding recent downtown gentrification.

Keywords: Accounting, neighborhood change, U.S Metropolitan areas

JEL Classification: M41, N32, R42

Suggested Citation

Baum-Snow, Nathaniel and Hartley, Daniel A., Accounting for Central Neighborhood Change, 1980-2010 (November 29, 2019). FRB of Chicago Working Paper No. WP-2016-9, Available at SSRN: https://ssrn.com/abstract=2839686

Nathaniel Baum-Snow (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

Daniel A. Hartley

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

HOME PAGE: http://www.danielaaronhartley.com

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