  Gentrification is associated with rapid demographic changes within inner-city
neighborhoods. While many fear that gentrification drives low-income people
from their homes and communities, there is limited evidence of the consequences
of these changes. I use Canadian administrative tax files to track the
movements of incumbent workers and their income trajectory as their
neighborhood gentrifies. I exploit the timing at which neighborhoods gentrify
in a matched staggered event-study framework. I find no evidence of
displacement effects, even for low socioeconomic status households. In fact,
families living in gentrifying neighborhoods are more likely to stay longer. I
suggest that this might be related to tenant rights protection laws. When they
endogenously decide to leave, low-income families do not relocate to worse
neighborhoods. Finally, I find no adverse effects on their income trajectory,
suggesting no repercussions on their labor market outcomes.
