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Of Cities and Slums

Author

Listed:
  • Pedro Cavalcanti Ferreira
  • Alexander Monge-Naranjo
  • Luciene Torres de Mello Pereira

Abstract

We study the emergence and persistence of urban slums in Brazil. Using data on labor markets, housing costs, and access to education, we construct a quantitative model to explore the impact of slums on the country’s human capital and structural transformation. Urban slums emerge and persist due to their dual roles as intergenerational stepping stones for low-educated households and as blockades for higher-educated ones. Providing slum children access to schools in formal urban areas would have led to larger but shorter-lived slums. Improved rural schools, if available earlier during urbanization, would have vastly prevented the formation of urban slums.

Suggested Citation

  • Pedro Cavalcanti Ferreira & Alexander Monge-Naranjo & Luciene Torres de Mello Pereira, 2025. "Of Cities and Slums," Journal of Political Economy, University of Chicago Press, vol. 133(9), pages 2693-2734.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/736210
    DOI: 10.1086/736210
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    Cited by:

    1. is not listed on IDEAS
    2. Adrien Bilal & Esteban Rossi‐Hansberg, 2021. "Location as an Asset," Econometrica, Econometric Society, vol. 89(5), pages 2459-2495, September.
    3. Guedes, Ricardo & Iachan, Felipe S. & Sant’Anna, Marcelo, 2023. "Housing supply in the presence of informality," Regional Science and Urban Economics, Elsevier, vol. 99(C).
    4. Rivera-Padilla, Alberto, 2021. "Slums, allocation of talent, and barriers to urbanization," European Economic Review, Elsevier, vol. 140(C).
    5. Brotherhood, Luiz & Cavalcanti, Tiago & Da Mata, Daniel & Santos, Cezar, 2022. "Slums and pandemics," Journal of Development Economics, Elsevier, vol. 157(C).

    More about this item

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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