Back to Search Start Over

Transportation Technology and Gentrification: Evidence from the entry of Ridesharing Services

Authors :
Agarwal, Sumit
Alok, Shashwat
Correia, Sergio
Mani, Deepa
Morais, Bernardo
Publication Year :
2024

Abstract

We analyze the staggered entry of rideshare services across U.S. metropolitan areas, estimating its effect on the spatial redistribution and real outcomes of residents. Ridesharing services gentrify urban areas-especially those with ex-ante lower housing values-causing housing prices to rise 9 percent, with the in-migration of rich-younger individuals more than offsetting the out-migration of incumbent residents and reduced in-migration of poorer individuals. Impact on incumbent residents is conditional on ex-ante homeownership. For homeowners, there is no displacement and a decline in delinquency rates. For non-homeowners, displacement and delinquency rates rise 11 percent and 42 percent, respectively. Our study emphasizes how the private provision of high-end transportation technologies can increase urbanization and exacerbate inequality.

Subjects

Subjects :
Economics - General Economics

Details

Database :
arXiv
Publication Type :
Report
Accession number :
edsarx.2409.15462
Document Type :
Working Paper