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Sent Away: Displacement, Neighborhoods, and Children’s Outcomes under Slum Clearance Policies

Author

Listed:
  • Fernanda Rojas-Ampuero
  • Felipe Carrera

Abstract

We examine the difference between two policies that target urban slums, relocation versus redevelopment on-site, on children’s future outcomes. We use evidence from a slum clearance program in Chile between 1979 and 1984, where two-thirds of slum-dwelling families were relocated to housing projects on the city’s periphery, and one-third received housing through on-site redevelopment at their original locations. We find that 40 years post-policy, displaced children receive 0.62 fewer years of schooling, earn 10.2% less, experience higher labor informality, and live in higher poverty areas compared to non-displaced children. Relocation to lower-opportunity areas and disruption of social networks explain the negative displacement effects.

Suggested Citation

  • Fernanda Rojas-Ampuero & Felipe Carrera, 2026. "Sent Away: Displacement, Neighborhoods, and Children’s Outcomes under Slum Clearance Policies," NBER Working Papers 35318, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:35318
    Note: CH DEV PE
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    More about this item

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean
    • 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

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