On the Political Economy of Urbanization: Experimental Evidence from Mozambique

Alex Armand, Mendonça, Frederica, Wayne Sandholtz and Pedro Vicente

No 21450, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Urbanization can generate large economic gains, but it presents electoral risks for incumbents. This paper studies the economic and political effects of a program to integrate rural migrants in a growing Mozambican city. We randomized city blocks into three arms: program delivery with or without the involvement of local leaders, and a no-program control. The program increased rural-to-urban migration across both treatment arms, but improved labor market integration and local incumbent electoral outcomes only with leader involvement. We also observe electoral spillovers in migrants' origin areas, no clientelistic responses, and no resident backlash. These findings show that city-level integration policies can deliver both economic and political returns.

Keywords: Urbanization; Internal migration; Political economy; Urban policy; Political leaders (search for similar items in EconPapers)
JEL-codes: D72 J61 O18 R23 (search for similar items in EconPapers)
Date: 2026-05
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