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Transit Infrastructure and Informal Housing: Assessing an Expansion of the Medellin’s Metrocable System

H. M. Posada () and Andres Garcia-Suaza ()

Documentos de Trabajo from Universidad del Rosario

Abstract: Transportation policies have an important incidence on the allocation of resources within cities. Therefore, investigating the impacts of transit investment is relevant especially in developing countries where informal housing is highly prevalent and spatial disparities are remarkable. We study the impact of a transit expansion of the Metrocable system in Medellín (Colombia) as a natural scenario to understand the causal links between lowering access cost and informal housing. Using a difference-in-difference identification strategy, we estimate that the expasion of Line H of Metrocable reduces informal housing up to 15 percentage points. We also show that the magnitude of the effect depends on the distance to the intervention. When exploring potential mechanisms mediating the analyzed causal relation we find that the labor market plays a crucial role.

Keywords: Informal housing; Transportation cost; Land value; Informal labor market; Colombia (search for similar items in EconPapers)
JEL-codes: J46 R31 R41 R42 (search for similar items in EconPapers)
Pages: 34
Date: 2021-04-22
New Economics Papers: this item is included in nep-iue, nep-lma, nep-tre and nep-ure
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Handle: RePEc:col:000092:019239