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Exclusionary policies in urban development: Under-servicing migrant households in Brazilian cities

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  • Feler, Leo
  • Henderson, J. Vernon

Abstract

Localities in developed countries often enact regulations to deter low-income households from moving in. In developing countries, such restrictions lead to the emergence of informal housing sectors. To deter low-income migrants, localities in developing countries withhold public services to the informal housing sector. Using a large sample of Brazilian localities, we examine migration and exclusion, focusing on the public provision of water to small houses where low-income migrants are likely to live. Withholding water connections reduces the locality growth rate, particularly of low-education households. In terms of service provision, during dictatorship in Brazil, we find evidence of strategic exclusion, where localities appear to withhold services to deter in-migration. We also find evidence of strategic interactions among localities within metro areas in their setting of service levels: if one locality provides more services to migrant households, other localities respond by withholding service.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 69 (2011)
Issue (Month): 3 (May)
Pages: 253-272

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Handle: RePEc:eee:juecon:v:69:y:2011:i:3:p:253-272

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Web page: http://www.elsevier.com/locate/inca/622905

Related research

Keywords: Urban slums Urban growth Urban services Exclusion;

References

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  1. Timothy Besley & Anne Case, 1992. "Incumbent Behavior: Vote Seeking, Tax Setting and Yardstick Competition," NBER Working Papers 4041, National Bureau of Economic Research, Inc.
  2. Daniel da Mata & U. Deichmann & J. Vernon Henderson & Somik V. Lall & H.G. Wang, 2005. "Determinants of City Growth in Brazil," NBER Working Papers 11585, National Bureau of Economic Research, Inc.
  3. Jan K. Brueckner, 1999. "Welfare Reform and the Race to the Bottom: Theory and Evidence," Southern Economic Journal, Southern Economic Association, Southern Economic Association, vol. 66(2), pages 505-525, January.
  4. Edward L. Glaeser & Jose A. Scheinkman & Andrei Shleifer, 1995. "Economic Growth in a Cross-Section of Cities," NBER Working Papers 5013, National Bureau of Economic Research, Inc.
  5. Rosenthal, Stuart S. & Strange, William C., 2008. "The attenuation of human capital spillovers," Journal of Urban Economics, Elsevier, Elsevier, vol. 64(2), pages 373-389, September.
  6. Wildasin, David E, 1991. "Income Redistribution in a Common Labor Market," American Economic Review, American Economic Association, American Economic Association, vol. 81(4), pages 757-74, September.
  7. Xavier Gabaix, 1999. "Zipf'S Law For Cities: An Explanation," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(3), pages 739-767, August.
  8. Case, Anne C. & Rosen, Harvey S. & Hines, James Jr., 1993. "Budget spillovers and fiscal policy interdependence : Evidence from the states," Journal of Public Economics, Elsevier, Elsevier, vol. 52(3), pages 285-307, October.
  9. Duncan Black & Vernon Henderson, 1999. "A Theory of Urban Growth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 107(2), pages 252-284, April.
  10. Fredriksson, Per G. & Millimet, Daniel L., 2002. "Strategic Interaction and the Determination of Environmental Policy across U.S. States," Journal of Urban Economics, Elsevier, Elsevier, vol. 51(1), pages 101-122, January.
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  1. > Real Estate and Housing Economics
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Cited by:
  1. Fox, Sean, 2014. "The Political Economy of Slums: Theory and Evidence from Sub-Saharan Africa," World Development, Elsevier, Elsevier, vol. 54(C), pages 191-203.
  2. Duranton, Gilles, 2014. "Growing through cities in developing countries," Policy Research Working Paper Series, The World Bank 6818, The World Bank.
  3. Eric Heikkila & Michael Lin, 2014. "An integrated model of formal and informal housing sectors," The Annals of Regional Science, Springer, Springer, vol. 52(1), pages 121-140, January.
  4. Coleman, Nicholas & Feler, Leo, 2014. "Bank Ownership, Lending, and Local Economic Performance During the 2008-2010 Financial Crisis," International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) 1099, Board of Governors of the Federal Reserve System (U.S.).
  5. Ajay Sharma & S Chandrasekhar, 2014. "Growth of the urban shadow, spatial distribution of economic activities and commuting by workers in rural and Urban India," Indira Gandhi Institute of Development Research, Mumbai Working Papers, Indira Gandhi Institute of Development Research, Mumbai, India 2014-015, Indira Gandhi Institute of Development Research, Mumbai, India.
  6. Michael Greenstone & B. Kelsey Jack, 2013. "Envirodevonomics: A Research Agenda for a Young Field," NBER Working Papers 19426, National Bureau of Economic Research, Inc.
  7. Julia A. Barde & Juliana Walkiewicz, 2014. "Access to Piped Water and Human Capital Formation - Evidence from Brazilian Primary Schools," Discussion Paper Series, Department of International Economic Policy, University of Freiburg 28, Department of International Economic Policy, University of Freiburg, revised Jul 2014.

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