Location and welfare in cities: impacts of policy interventions on the urban poor
AbstractInformal settlements are an integral part of the urban landscape in developing countries. These settlements are widely distributed within cities, including central business centers and peripheral areas with environment hazards. In most cases, residents of these settlements do not have access to basic public services and amenities. In this paper, the authors examine the impact of interventions, such as upgrading basic services and resettlement policies, on the welfare of residents of these informal settlements, who are typically the urban poor. To examine these interventions, they estimate models of residential location choice and allow households to be sensitive to commuting costs to work, demand for public services, and preferences for community composition. The authors'empirical analysis is based on recently collected survey data from Pune, India, and shows that poor households prefer to live close to work and in communities that consist of people sharing common socio-demographic characteristics. From the perspective of households living in informal settlements, upgrading settlements in the original place is welfare enhancing. If a household must be relocated, it greatly prefers to be moved to a community that resembles its current community.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 3318.
Date of creation: 01 May 2004
Date of revision:
Municipal Financial Management; Public Health Promotion; Decentralization; Housing&Human Habitats; Urban Services to the Poor; Municipal Financial Management; Housing&Human Habitats; VN-Acb Mis -- IFC-00535908; Urban Housing; City Development Strategies;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lall, Somik V. & Deichmann, Uwe & Lundberg, Mattias K.A. & Chaudhury, Nazmul, 2002.
"Tenure, Divesity, and commitment - community participation for urban service provision,"
Policy Research Working Paper Series
2862, The World Bank.
- Somik Lall & Uwe Deichmann & Mattias KA Lundberg & Nazmul Chaudhury, 2004. "Tenure, Diversity and Commitment: Community Participation for Urban Service Provision," Journal of Development Studies, Taylor & Francis Journals, vol. 40(3), pages 1-26.
- Patrick Bayer & Robert McMillan & Kim Rueben, 2005.
"Residential Segregation in General Equilibrium,"
NBER Working Papers
11095, National Bureau of Economic Research, Inc.
- Baland, J.M. & Platteau, J.P., 1994. "Does Hiterogeneity Hinder Collective Action," Papers 146, Notre-Dame de la Paix, Sciences Economiques et Sociales.
- Jha, Saumitra & Rao, Vijayendra & Woolcock, Michael, 2007.
"Governance in the Gullies: Democratic Responsiveness and Leadership in Delhi's Slums,"
Elsevier, vol. 35(2), pages 230-246, February.
- Jha, Saumitra & Rao, Vijayendra & Woolcock, Michael, 2005. "Governance in the gullies : democratic responsiveness and leadership in Delhi's slums," Policy Research Working Paper Series 3694, The World Bank.
- Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
- McGuire, Martin, 1974. "Group Segregation and Optimal Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 112-32, Jan.-Feb..
- Ross, Stephen & Yinger, John, 1999. "Sorting and voting: A review of the literature on urban public finance," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 47, pages 2001-2060 Elsevier.
- Daniel McFadden, 1977. "Modelling the Choice of Residential Location," Cowles Foundation Discussion Papers 477, Cowles Foundation for Research in Economics, Yale University.
- Takeuchi, Akie & Cropper, Maureen & Bento, Antonio, 2006. "The welfare effects of slum improvement programs : the case of Mumbai," Policy Research Working Paper Series 3852, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.