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Exclusionary policies in urban development : how under-servicing of migrant households affects the growth and composition of Brazilian cities

Author: Leo Feler; J Vernon Henderson; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2008.
Series: Working paper series (National Bureau of Economic Research), no. 14136.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Localities in developed countries often restrict construction and population growth through regulations governing land usage, lot sizes, building heights, and frontage requirements. In developing countries, such policies are less effective because of the existence of unregulated, informal housing markets. Cities in developing countries that seek to limit in-migration must also discourage entry into informal housing  Read more...
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Additional Physical Format: Print version:
Feler, Leo.
Exclusionary policies in urban development.
Cambridge, Mass. : National Bureau of Economic Research, 2008
(DLC) 2008610952
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Leo Feler; J Vernon Henderson; National Bureau of Economic Research.
OCLC Number: 232959232
Description: 1 online resource (1 volume).
Series Title: Working paper series (National Bureau of Economic Research), no. 14136.
Responsibility: Leo Feler, J. Vernon Henderson.

Abstract:

Localities in developed countries often restrict construction and population growth through regulations governing land usage, lot sizes, building heights, and frontage requirements. In developing countries, such policies are less effective because of the existence of unregulated, informal housing markets. Cities in developing countries that seek to limit in-migration must also discourage entry into informal housing by providing low levels of public services to this sector. In this paper, we analyze the causes of slums, using data from Brazilian urban areas. We develop a model of the decisions that localities make to affect in-migration and find evidence that localities act strategically. Richer and larger localities in an urban area reduce provision of water and sewerage connections to the smaller houses in which poorer migrants would live to discourage the in-migration of these poorer migrants and deflect them to other localities. We also find that under-servicing smaller houses reduces the population growth rate of localities. Not only does it reduce the in-migration of low-educated households, it seems that, because of negative externalities, such under-servicing also reduces the growth rate of higher-educated households.

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