IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

The welfare effects of slum improvement programs : the case of Mumbai

  • Takeuchi, Akie
  • Cropper, Maureen
  • Bento, Antonio

The authors compare the welfare effects of in situ slum upgrading programs with programs that provide slum dwellers with better housing in a new location. Evaluating the welfare effects of slum upgrading and resettlement programs requires estimating models of residential location choice, in which households trade off commuting costs against the cost and attributes of the housing they consume, including neighborhood attributes. The authors accomplish this using data for 5,000 households in Mumbai, a city in which 40 percent of the population live in slums. The precise welfare effects of resettlement programs depend on assumptions made about the ease with which workers can change jobs and also on the ethnic characteristics of neighborhoods in which new housing is located. To illustrate this point the authors consider a realistic slum upgrading program that could be offered to residents in their sample living in east Mumbai. They summarize the effects of job opportunities and neighborhood composition on welfare by mapping how compensating variation for the program changes depending on where in Mumbai improved housing is located. If program beneficiaries continue working in their original job, the set of welfare-enhancing locations for the upgrading program is small. The set increases greatly if it is assumed that workers can change jobs. The benefits of this program are contrasted with the benefits of in situ housing improvements.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3852.

in new window

Date of creation: 01 Feb 2006
Date of revision:
Handle: RePEc:wbk:wbrwps:3852
Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Kapoor, Mudit & Lall, Somik V. & Lundberg, Mattias K. A. & Shalizi, Zmarak, 2004. "Location and welfare in cities: impacts of policy interventions on the urban poor," Policy Research Working Paper Series 3318, The World Bank.
  2. Patrick Bayer & Stephen L. Ross & Giorgio Topa, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Working Papers 927, Economic Growth Center, Yale University.
  3. Buckley, Robert M. & Kalarickal, Jerry, 2004. "Shelter strategies for the urban poor : idiosyncratic and successful, but hardly mysterious," Policy Research Working Paper Series 3427, The World Bank.
  4. Jimenez, Emmanuel, 1984. "Tenure Security and Urban Squatting," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 556-67, November.
  5. Kaivan Munshi & Mark Rosenzweig, 2006. "Traditional Institutions Meet the Modern World: Caste, Gender, and Schooling Choice in a Globalizing Economy," American Economic Review, American Economic Association, vol. 96(4), pages 1225-1252, September.
  6. Patrick Bayer & Robert McMillan & Kim Rueben, 2002. "What Drives Racial Segregation? New Evidence Using Census Microdata," Working Papers 02-26, Center for Economic Studies, U.S. Census Bureau.
  7. Patrick Bayer & Robert McMillan & Kim Rueben, 2004. "An Equilibrium Model of Sorting in an Urban Housing Market," NBER Working Papers 10865, National Bureau of Economic Research, Inc.
  8. Bayer, Patrick & Ross, Stephen L., 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Working Papers 8, Yale University, Department of Economics.
  9. Mayo, Stephen K & Gross, David J, 1987. "Sites and Services--and Subsidies: The Economics of Low-Cost Housing in Developing Countries," World Bank Economic Review, World Bank Group, vol. 1(2), pages 301-35, January.
  10. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
  11. Kaufmann, Daniel & Quigley, John M., 1987. "The consumption benefits of investment in infrastructure : The evaluation of sites-and-services programs in underdeveloped countries," Journal of Development Economics, Elsevier, vol. 25(2), pages 263-284, April.
  12. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
  13. Malpezzi, Stephen & Mayo, Stephen K., 1987. "User cost and housing tenure in developing countries," Journal of Development Economics, Elsevier, vol. 25(1), pages 197-220, February.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:3852. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.