Gentrification and Pioneer Businesses

56 Pages Posted: 5 Nov 2018 Last revised: 21 Jan 2019

See all articles by Kristian Behrens

Kristian Behrens

University of Quebec at Montreal (UQAM) - Department of Economics

Brahim Boualam

University of Quebec at Montreal (UQAM)

Julien Martin

University of Quebec at Montreal (UQAM)

Florian Mayneris

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE)

Date Written: November 2018

Abstract

We study gentrification at a micro-geographic scale using information on residents and businesses in New York from 1990 to 2010. We exploit atypical location decisions of businesses to identify the sectors that usually locate in wealthy neighborhoods but are overrepresented in poor soon-to-gentrify areas. These pioneer sectors - mostly cultural, recreational, and creative industries - help us to better predict gentrification at its early stage: including the presence of pioneers improves the accuracy of the prediction of future gentrifying spots by up to 200 meters. We show that pioneers foster gentrification through the types of workers they hire, their signal as to the future prospects of a neighborhood, and their effect on the subsequent arrival of consumption amenities.

Keywords: Gentrification, microgeographic data, New York, pioneer businesses

JEL Classification: R14, R23, R31

Suggested Citation

Behrens, Kristian and Boualam, Brahim and Martin, Julien and Mayneris, Florian, Gentrification and Pioneer Businesses (November 2018). CEPR Discussion Paper No. DP13296, Available at SSRN: https://ssrn.com/abstract=3278671

Kristian Behrens (Contact Author)

University of Quebec at Montreal (UQAM) - Department of Economics ( email )

P.O. Box 8888, Downtown Station
Montreal, Quebec H3C 3P8
Canada

Brahim Boualam

University of Quebec at Montreal (UQAM) ( email )

PB 8888 Station DownTown
Succursale Centre Ville
Montreal, Quebec H3C3P8
Canada

Julien Martin

University of Quebec at Montreal (UQAM) ( email )

PB 8888 Station DownTown
Succursale Centre Ville
Montreal, Quebec H3C3P8
Canada

Florian Mayneris

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE) ( email )

34 Voie du Roman Pays
B-1348 Louvain-la-Neuve, b-1348
Belgium

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