DP13296 Gentrification and pioneer businesses
|Author(s):||Kristian Behrens, Brahim Boualam, Julien Martin, Florian Mayneris|
|Publication Date:||November 2018|
|Keyword(s):||Gentrification, microgeographic data, New York, pioneer businesses|
|JEL(s):||R14, R23, R31|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=13296|
We build a time-consistent block-level dataset from 1990 to 2010 containing socio-economic characteristics of residents and information on businesses in New York. We identify both gentrifying areas and pioneer sectors characterized by atypical location decisions. The latter-mostly cultural, recreational, and creative industries-help us to better predict and understand gentrification. We find that a block's initial exposure to pioneers has a quantitatively sizable effect in predicting future gentrification. 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 arrival of consumption amenities.