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Household savings and residential mobility in informal settlements

Author

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  • Lall, Somik V.
  • Suri, Ajay
  • Deichmann, Uwe

Abstract

Strategies to help the one billion people worldwide who live in informal settlements have mainly focused on slum upgrading, sites and services programs, and tenure security. In contrast, there has been less attention on what enables slum dwellers to transition into the formal housingsector, which has the dual benefits of improving service access and escaping social stigma. In this paper the authors investigate residential mobility among slum dwellers in Bhopal, India. Their analysis shows that one in five households succeeds in getting out of a slum settlement, and a major determinant is the household's ability to save on a regular basis. Due to limited outreach of institutional housing finance, most slum dwellers rely solely on household savings for purchasing a house. These findings underscore the urgent need to improve savings instruments for slum dwellers and to downmarket housing finance to reach the poorest residents of rapidly growing cities in developing countries.

Suggested Citation

  • Lall, Somik V. & Suri, Ajay & Deichmann, Uwe, 2005. "Household savings and residential mobility in informal settlements," Policy Research Working Paper Series 3596, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3596
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    References listed on IDEAS

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    1. Jalan, Jyotsna & Ravallion, Martin, 1999. "Income gains to the poor from workfare - estimates for Argentina's TRABAJAR Program," Policy Research Working Paper Series 2149, The World Bank.
    2. Jean O. Lanjouw & Philip I. Levy, 2002. "Untitled: A Study of Formal and Informal Property Rights in Urban Ecuador," Economic Journal, Royal Economic Society, vol. 112(482), pages 986-1019, October.
    3. Angus Deaton & Christina Paxson, 2000. "Growth and Saving Among Individuals and Households," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 212-225, May.
    4. Buckley, Robert M. & Kalarickal, Jerry, 2004. "Shelter strategies for the urban poor : idiosyncratic and successful, but hardly mysterious," Policy Research Working Paper Series 3427, The World Bank.
    5. Bertaud, Alain & Brueckner, Jan K., 2004. "Analyzing building height restrictions - predicted impacts, welfare costs, and a case study of Bangalore, India," Policy Research Working Paper Series 3290, The World Bank.
    6. Herbert Werlin, 1999. "The Slum Upgrading Myth," Urban Studies, Urban Studies Journal Limited, vol. 36(9), pages 1523-1534, August.
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    Cited by:

    1. Orbeta, Aniceto Jr. C., 2006. "Children and Household Savings in the Philippines," Discussion Papers DP 2006-14, Philippine Institute for Development Studies.
    2. repec:phd:pjdevt:pjd_2005_vol__xxxii_no__2-a is not listed on IDEAS
    3. Pedro Cavalcanti Ferreira & Alexander Monge-Naranjo & Luciene Torres de Mello Pereira, 2016. "Of Cities and Slums," Working Papers 2016-22, Federal Reserve Bank of St. Louis.

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    Keywords

    Housing&Human Habitats; Urban Housing; Banks&Banking Reform; Urban Services to the Poor; Urban Services to the Poor;
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