Does gentrification lead to greater social polarization?

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1 Does gentrification lead to greater social polarization? Evidence from large Canadian cities R. Alan Walks & Richard Maaranen Centre for Urban and Community Studies, Neighbourhood Change & Building Inclusive Communities from Within Community University Research Alliance, Social Science and Humanities Research Council of Canada Does gentrification lead to greater social polarization? Evidence from Large Canadian cities Outline:. Research questions: Does Gentrification Social Polarization? How do the stages of gentrification shifts in polarization? 2. Methods: a) defining and measuring gentrification b) defining and measuring polarization (and inequality) 3. Results: Indices of income polarization and inequality 4. Conclusions: tentative

2 Defining and Measuring Gentrification - Census tract data, Census of Canada 96, 97, 98, 99, 996, Principal Components Analysis (PCA) with 4 variables:. Social Status (LQ of professional/managerial occupations, and university education 2. Average Personal Income (persons aged 5+) 3. Tenure Composition (% Tenants) 4. LQ for Artists - PCA analyzed changes between 97, 98, 99, 996 and 200 Censuses - Settled on 5 components, indicating changes between Census years The timing and patterning of gentrification and upgrading, Toronto 2

3 The timing and patterning of gentrification and upgrading, Vancouver The timing and patterning of gentrification and upgrading, Montreal 3

4 Defining and Measuring Polarization & Inequality - Census tract data, census of Canada 97, 98, 99, 996, 200 -Census tracts as proxies for neighbourhoods - Polarization and Inequality between households within census tracts -Calculated from data on income ranges but many limitations Inequality Indices: Polarization Indices:. Gini concentration ratio (Gini CR). Wang-Tsui (WT) 2. Exponent (Exp) 2. Coefficient of Polarization (CoP) 3. Coefficient of Variation squared (CV2) 4. General Entropy (GE0) (Theil L) 5. Skewness Ratio (Mean/Med) -Measured social diversity as a function of a) LQ of 3 groups over time (Chinese, Blacks, South Asians) and 2) Canadian/Foreign Born Defining and Measuring Polarization & Inequality Inequality and Polarization are distinct concepts Inequality: Pigou-Dalton axiom = transfers from richer to poorer must always decrease inequality Polarization: 2 axioms: ) Spread 2) Bipolarity 4

5 Results Changes in polarization and inequality in large Canadian cities Change in Inequality and Polarization Toronto CMA Cop WT Skewness Theil L Gini CR Exponent CVsquared

6 Change in Inequality and Polarization Montreal CMA Cop WT Skewness Theil L Gini CR Exponent CVsquared 0.9 Change in Inequality and Polarization Vancouver CMA Cop WT Skewness Theil L Gini CR Exponent CVsquared

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10 Focus on Toronto: Stages of Gentrification in Toronto: LQ Artistic occupations LQ Social Status (occupation and education) % Tenants (residual is Owner %) Personal Income Ratio 4 LQ for those employed in Artistic occupations, Toronto LQ Artists _inc _inc Future? Decline Mixed Trends (rest of City) 0 0

11 2.5 LQ of Social Status (Occupation & Education), Toronto Soc cial Status Index (CMA =..00) _inc _inc Future? Decline Mixed Trends (rest of City) 0 % Tenants, Toronto 70% P ercent who are Tenants 60% 50% 40% _inc _inc Future? Decline Mixed Trends (rest of City) 30%

12 Ave. Personal Income Ratio (CMA =.00), Toronto In ncome Ratio (CMA =.00) _inc _inc Future? Decline Mixed Trends (rest of City) Shifts in Income Polarization - Toronto 2

13 Coefficient of Polarization Values , Toronto Index values Mixed _inc inc Potential Future Decline Coefficient of Polarization (COP) values for each group As a ratio of the rest of the City - Toronto.3.2 Index values. 0.9 _inc inc Potential Future Decline

14 Shifts in Social Diversity - Toronto % who are Chinese, Black, or of South Asian descent - Toronto 45% 40% 35% Percent (population) 30% 25% 20% 5% 0% 5% Mixed Trends _inc _inc Potential Future? Downgrading_Decline 0% 4

15 LQ of those who are Chinese, Black, or of South Asian descent - Toronto LQ _inc _inc Potential Future? Downgrading_Decline CMA=.00 0 % Born in Canada - Toronto 80% 70% Percent (population) 60% 50% 40% 30% Mixed Trends _inc _inc Potential Future? Downgrading_Decline 20% 5

16 LQ of those Born in Canada - Toronto LQ _inc _inc Potential Future? Downgrading_Decline CMA =.00 Does gentrification lead to greater social polarization? Evidence from Large Canadian cities Conclusions. Polarization trends in gentrified neighbourhoods are different from other forms of upgrading 2. Gentrification linked with particular trajectory: A) Before onset of gentrification, polarization levels significantly lower than average b) rapid increase in income polarization during the primary period of upgrading c) followed by stable or declining levels of income polarization (until late 90s when polarization increased across higher income neighbourhoods) 3. Neighbourhoods with incomplete upgrading, show greater stability over time, though higher-than-average polarization levels 4. Social diversity, in relative terms, is lower and declined faster in gentrified neighbourhoods, though the process is slower than for polarization 6

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