Creative Destruction? Creative firms, workers and residential gentrification

Authors: Dr Tasos Kitsos,  Dr Max Nathan, ​Dr Diana Gutierrez Posada.

A new study by Tasos Kitsos, Max Nathan, and Diana Gutierrez-Posada finds only a minor influence of creative firms and workers on neighborhood gentrification in England and Wales between 2001-2011. Meanwhile, the Creative Industries continue to be a key driver of economic growth, with creative clusters being particularly productive targets for investment and support.

Looking at over 80,000 neighborhoods, the authors uncover a negligible 0.2% higher probability of gentrification from a 10 percentage point increase in local creative businesses. The effect is slightly larger at 0.2% for creative workers, but still small. Most of the impacts are concentrated in major cities and very creative neighborhoods.

The paper argues that creative actors play a limited role in displacing poorer residents, contrary to some claims. But their imprint grows in specific urban contexts.

Policy makers should continue to invest in the creative industries, particularly in creative clusters, as key drivers of economic growth. On top of this, the study recommends policy interventions to respond to the limited impact of gentrification. For example, planning rules to mitigate impacts in hotspots, as well as employment training to help disadvantaged residents access creative jobs.

Please note: This discussion paper, which has not been externally peer-reviewed, combines a range of microdata at the Census Output Area level.

Read full article here.

The Creative PEC is led by Newcastle University with the Royal Society of Arts and funded by the Arts and Humanities Research Council (AHRC).