Slum Upgrading and Long-Run Urban Development: Evidence from Indonesia.
Developing countries face massive urbanization and slum upgrading is a popular policy to improve shelter for many. Yet, preserving slums at the expense of formal developments can raise concerns of misallocation of land. We estimate causal, long-term impacts of the 1969–84 KIP programme, which provid...
| Published in: | Review of Economic Studies Vol. 93; no. 4; pp. 2646 - 2680 |
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| Main Authors: | , |
| Format: | Article |
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Oxford University Press / USA
Jul2026
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| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=195161457&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 195161457 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00346527 REM jtl: Review of Economic Studies issn: 00346527 maglogo: N pubinfo: dt: Jul2026 vid: 93 iid: 4 pid: 622 pub: Oxford University Press / USA artinfo: ui: 195161457 10.1093/restud/rdaf090 ppf: 2646 ppct: 34 formats: tig: atl: Slum Upgrading and Long-Run Urban Development: Evidence from Indonesia. aug: au: Harari, Mariaflavia Wong, Maisy affil: University of Pennsylvania, USA University of Pennsylvania and NBER, USA su: Jakarta (Indonesia) Indonesia Slums Urban growth Economic models Squatter settlements Social impact Real property sales & prices Indonesians sug: subj: Slums Urban growth Economic models Squatter settlements Social impact Jakarta (Indonesia) Indonesia Land Subdivision Lessors of Other Real Estate Property Offices of Real Estate Agents and Brokers Real property sales & prices Indonesians keyword: Cities copyrightHolder:Review of Economic Studies Ltd copyrightYear:2026 Housing Informality inLanguage:en Land markets publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/restud/rdaf090 Urbanization Cities copyrightHolder:Review of Economic Studies Ltd copyrightYear:2026 Housing Informality inLanguage:en Land markets publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/restud/rdaf090 Urbanization ab: Developing countries face massive urbanization and slum upgrading is a popular policy to improve shelter for many. Yet, preserving slums at the expense of formal developments can raise concerns of misallocation of land. We estimate causal, long-term impacts of the 1969–84 KIP programme, which provided basic upgrades to 5 million residents covering 25% of land in Jakarta, Indonesia. We assemble high-resolution data on programme boundaries and 2015 outcomes and address programme selection bias through localized comparisons. On average, KIP areas today have lower land values, shorter buildings, and are more informal, per a photographs-based slum index. The negative effects are concentrated within 5 km of the CBD. We develop a spatial equilibrium model to characterize the welfare implications of KIP. Counterfactuals suggest that 79% of the welfare effects stem from removing KIP in the centre and highlight how to mitigate losses to displaced residents. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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