The Rising Value of Time and the Origin of Urban Gentrification

In recent decades, gentrification has transformed American central city neighborhoods. I estimate a spatial equilibrium model to show that the rising value of high-skilled workers’ time contributes cities. increasing raises cost commuting and exogenously increases demand for locations by workers. While change in modest direct effect on cities, is substantially magnified endogenous amenity driven changes local skill mix. (JEL J22, J24, R21, R23)