There Is No Free House: Ethnic Patronage in a Kenyan Slum

Benjamin Marx, Thomas M. Stoker and Tavneet Suri

American Economic Journal: Applied Economics, 2019, vol. 11, issue 4, 36-70

Abstract: Using unique data from one of Africa's largest informal settlements, the Kibera slum in Nairobi, we provide evidence of ethnic patronage in the determination of rental prices and investments. Slum residents pay higher rents and live in lower quality housing (measured via satellite pictures) when the landlord and the locality chief belong to the same ethnicity. Conversely, rental prices are lower, and investments higher when residents and chiefs are co-ethnics. Our identification relies on the exogenous appointment of chiefs and is supported by several tests, including a regression discontinuity design.

JEL-codes: J15 O15 O17 O18 R21 R31 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/app.20160484
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Citations: View citations in EconPapers (45)

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Working Paper: There Is No Free House: Ethnic Patronage in a Kenyan Slum (2019)
Working Paper: There Is No Free House: Ethnic Patronage in a Kenyan Slum (2019)
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