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Moving to Opportunity or Isolation? Network Effects of a Slum Relocation Program in India

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  • Barnhardt, Sharon
  • Field, Erica
  • Pande, Rohini

Abstract

A" housing" lottery" in" a" large" Indian" city" provided" 110" out" of" 497" participants the" opportunity" to" move" out" of" a" slum" and" into" improved" housing" on" the" city's" periphery." Fourteen"years"after"housing"assignment,"relative" to"lottery"losers,"winners"report"better" housing"conditions"farther"from"the"city"center,"but"no"change"in"family"income"or"human" capital."Winners"also"state"increased"isolation" from" family"and"caste"networks"and"lower" access" to" informal" insurance." In" particular," they" are" significantly" less" likely" to" know" someone"they"can"rely"on"for"borrowing"needs"and"report"fewer"informal"transfers"in"the" event" of" shocks." We" also" observe significant" program" exit:" 34%" of" winners" never" even" moved" into" the" assigned" housing" and" 32%" eventually" exited" the" colony" to" be" closer" to" family" and" the" city" center." Our" results" suggest" that" the" benefits" of" improved" suburban" housing"were"offset"by"its"drawbacks"in"the"form"of"destruction"of"social"capital,"pointing"to" the"importance"of"considering"social"networks"when"designing"housing"programs" for" the" poor.

Suggested Citation

  • Barnhardt, Sharon & Field, Erica & Pande, Rohini, 2014. "Moving to Opportunity or Isolation? Network Effects of a Slum Relocation Program in India," IIMA Working Papers WP2014-11-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:12921
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    References listed on IDEAS

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    2. Sandrine Mesplé-Somps & Laure Pasquier-Doumer & Charlotte Guénard, 2016. "Quel impact des projets de réhabilitation urbaine sur les conditions de vie ? Le cas d’un bidonville à Djibouti," Working Papers 20160002, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.

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