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

Fernanda Rojas-Ampuero and Felipe Carrera

No 35318, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: H75 I38 J13 N36 O18 R23 (search for similar items in EconPapers)
Date: 2026-06
Note: CH DEV PE
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