Who Benefits From Brownfield Cleanup and Gentrification? Evidence From Chicago

Abstract

This paper presents research on the distribution of economic benefits from brownfield cleanup and land development. There is growing concern that cleaning up blighted areas, including brownfields, can entrench inequality by disproportionately benefiting some demographic groups more than others. We look for evidence of disproportionate benefits by relating changes in move decisions to land use activity in Chicago using a heterogeneous sorting model. Our research produces two key insights: first, Black and Hispanic households benefit less than White households from brownfield cleanup and vacant land development. Second, owners appear to benefit more than renters from cleanup and development. Overall, these results provide evidence of differences associated with race and housing tenure in who benefits from local land use actions.