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On the Political Economy of Urbanization: Experimental Evidence from Mozambique

Author

Listed:
  • Armand, Alex
  • Mendonça, Frederica
  • Sandholtz, Wayne
  • Vicente, Pedro

Abstract

Urbanization can generate large economic gains, but it presents electoral risks for incumbents. This paper studies the economic and political effects of a program to integrate rural migrants in a growing Mozambican city. We randomized city blocks into three arms: program delivery with or without the involvement of local leaders, and a no-program control. The program increased rural-to-urban migration across both treatment arms, but improved labor market integration and local incumbent electoral outcomes only with leader involvement. We also observe electoral spillovers in migrants' origin areas, no clientelistic responses, and no resident backlash. These findings show that city-level integration policies can deliver both economic and political returns.

Suggested Citation

  • Armand, Alex & Mendonça, Frederica & Sandholtz, Wayne & Vicente, Pedro, 2026. "On the Political Economy of Urbanization: Experimental Evidence from Mozambique," CEPR Discussion Papers 21450, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:21450
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    Keywords

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    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • 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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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