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The Urban Learning Premium - Evidence from Peru

Author

Listed:
  • Fagernäs, Sonja

    (University of Sussex)

  • Pelkonen, Panu

    (University of Sussex)

  • del Pozo Segura, Juan Manuel

    (Pontificia Universidad Católica del Perú)

Abstract

We examine the urban learning and schooling premium in Peru using two approaches: 1) estimating the effect of local population density on pupils’ value-added in learning between grades two to eight, 2) quasi-experimental Census estimations on the effects of the duration of urban exposure in childhood on school attainment. Unconditional estimates show that a ten-fold increase in population density is associated with around 0.13 standard deviations higher value-added in learning. Conditional estimates suggest that this association is driven largely by sorting, captured mainly by household socio-economic status, and local area factors, reflecting agglomeration benefits. School resources, in turn, are unimportant. Finally, a higher population density also correlates with unobserved factors that can harm learning. The quasi-experimental estimations confirm a positive relationship between urban exposure and educational outcomes: a longer period of urban education leads to higher educational attainment and a higher likelihood of enrolment in the correct grade for age.

Suggested Citation

  • Fagernäs, Sonja & Pelkonen, Panu & del Pozo Segura, Juan Manuel, 2025. "The Urban Learning Premium - Evidence from Peru," IZA Discussion Papers 18177, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18177
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    Keywords

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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