Urban Renewal and Inequality: Evidence from Chicago's Public Housing Demolitions

65 Pages Posted: 3 Jan 2023

See all articles by Milena Almagro

Milena Almagro

University of Chicago - Booth School of Business

Eric T. Chyn

University of Virginia - Department of Economics

Bryan A. Stuart

George Washington University - Department of Economics

Multiple version iconThere are 3 versions of this paper

Date Written: December 14, 2022

Abstract

This paper studies one of the largest spatially targeted redevelopment efforts implemented in the United States: public housing demolitions sponsored by the HOPE VI program. Focusing on Chicago, we study welfare and racial disparities in the impacts of demolitions using a structural model that features a rich set of equilibrium responses. Our results indicate that demolitions had notably heterogeneous effects where welfare decreased for low-income minority households and increased for White households. Counterfactual simulations explore how housing policy mitigates negative effects of demolitions and suggest that increased public housing site redevelopment is the most effective policy for reducing racial inequality.

Keywords: Urban Renewal, Inequality, Segregation, Endogenous Neighborhood Change

JEL Classification: R23, R28, K42

Suggested Citation

Almagro, Milena and Chyn, Eric T. and Stuart, Bryan A., Urban Renewal and Inequality: Evidence from Chicago's Public Housing Demolitions (December 14, 2022). University of Chicago, Becker Friedman Institute for Economics Working Paper No. 2022-163, Available at SSRN: https://ssrn.com/abstract=4317066 or http://dx.doi.org/10.2139/ssrn.4317066

Milena Almagro (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL IL 60637
United States
9179134779 (Phone)
60637 (Fax)

Eric T. Chyn

University of Virginia - Department of Economics ( email )

237 Monroe Hall
P.O. Box 400182
Charlottesville, VA 22904-418
United States

Bryan A. Stuart

George Washington University - Department of Economics ( email )

United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
47
Abstract Views
251
PlumX Metrics