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Gentrification and residential mobility in Philadelphia

Author

Listed:
  • Lei Ding
  • Eileen Divringi
  • Jackelyn Hwang

Abstract

Gentrification has provoked considerable debate and controversy about its effects on neighborhoods and the people residing in them. This paper draws on a unique large-scale consumer credit database to examine the mobility patterns of residents in gentrifying neighborhoods in the city of Philadelphia from 2002 to 2014. We find significant heterogeneity in the effects of gentrification across neighborhoods and subpopulations. Residents in gentrifying neighborhoods have slightly higher mobility rates than those in nongentrifying neighborhoods, but they do not have a higher risk of moving to a lower-income neighborhood. Moreover, gentrification is associated with some positive changes in residents? financial health as measured by individuals? credit scores. However, when more vulnerable residents (low-score, longer-term residents, or residents without mortgages) move from gentrifying neighborhoods, they are more likely to move to lower-income neighborhoods and neighborhoods with lower values on quality-of-life indicators. The results reveal the nuances of mobility in gentrifying neighborhoods and demonstrate how the positive and negative consequences of gentrification are unevenly distributed.

Suggested Citation

  • Lei Ding & Eileen Divringi & Jackelyn Hwang, 2015. "Gentrification and residential mobility in Philadelphia," Working Papers 15-36, Federal Reserve Bank of Philadelphia.
    • Handle: RePEc:fip:fedpwp:15-36
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    References listed on IDEAS

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    1. McKinnish, Terra & Walsh, Randall & Kirk White, T., 2010. "Who gentrifies low-income neighborhoods?," Journal of Urban Economics, Elsevier, vol. 67(2), pages 180-193, March.
    2. Helms, Andrew C., 2003. "Understanding gentrification: an empirical analysis of the determinants of urban housing renovation," Journal of Urban Economics, Elsevier, vol. 54(3), pages 474-498, November.
    3. Ellen, Ingrid Gould & O'Regan, Katherine M., 2011. "How low income neighborhoods change: Entry, exit, and enhancement," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 89-97, March.
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    Cited by:

    1. Michael E. Porter, 2016. "Inner-City Economic Development," Economic Development Quarterly, , vol. 30(2), pages 105-116, May.
    2. Joseph Gibbons & Atsushi Nara & Bruce Appleyard, 2018. "Exploring the imprint of social media networks on neighborhood community through the lens of gentrification," Environment and Planning B, , vol. 45(3), pages 470-488, May.
    3. H. Shellae Versey & Serene Murad & Paul Willems & Mubarak Sanni, 2019. "Beyond Housing: Perceptions of Indirect Displacement, Displacement Risk, and Aging Precarity as Challenges to Aging in Place in Gentrifying Cities," IJERPH, MDPI, vol. 16(23), pages 1-21, November.
    4. Winifred Curran, 2018. "‘Mexicans love red’ and other gentrification myths: Displacements and contestations in the gentrification of Pilsen, Chicago, USA," Urban Studies, Urban Studies Journal Limited, vol. 55(8), pages 1711-1728, June.

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    More about this item

    Keywords

    Gentrification; Residential mobility; Credit scores; Displacement;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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