The Urban Learning Premium - Evidence from Peru

Sonja Fagernäs (), Panu Pelkonen and Juan Manuel del Pozo Segura ()
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Sonja Fagernäs: University of Sussex
Juan Manuel del Pozo Segura: Pontificia Universidad Católica del Perú

No 18177, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: agglomeration; neighborhoods; learning; urbanization; Latin America (search for similar items in EconPapers)
JEL-codes: H75 I21 O15 R58 (search for similar items in EconPapers)
Date: 2025-10
New Economics Papers: this item is included in nep-dev, nep-lam and nep-ure
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