Park Avenues: Wealth, Neighborhoods, and Mobility in Gilded Age Manhattan

I study the long-run effects of major urban improvements on existing households. I exploit family location near the site of New York's Central Park (1858-76) prior to an east-west divergence in land values, neighbor wealth, and amenities. Between 1860-70, east side property holders gained 70% more wealth than their west-side counterparts, while non-holders remained similar. Regardless of property, son mobility by 1900 and grandson mobility by 1940 are unchanged. Gains for propertied households were partially offset by reduced labor force participation. Limited social integration with wealthy newcomers may explain why improved neighborhood conditions failed to increase mobility for existing households.

Available at SSRN: https://ssrn.com/abstract=5254607