Do slum upgrading programmes improve living standards? Evidence from Djibouti
Impact studies of urban upgrading projects are few and far between. This article presents the case of an integrated urban development project in a Djibouti slum. It uses two difference-in-differences estimation techniques, one to compare the project zone with a control zone and the other to compare individuals and households within the project zone based on the extent to which the project has connected them. We find that the project has had a not-inconsiderable impact on tenure regularisation, but no impact on housing or property values. In employment, the project has had no impact on the labour supply, but has nonetheless prompted the emergence of self-employed activities. Lastly, near the new roads, poorer households are crowded out by much better-off households.
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