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 1969-1984 KIP program, which provided basic upgrades to 5 million residents covering 25% of land in Jakarta, Indonesia. We assemble high-resolution data on program boundaries and 2015 outcomes and address program 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 5km of the CBD. We develop a spatial equilibrium model to characterize the welfare implications of KIP. Counterfactuals suggest that 78% of the welfare effects stem from removing KIP in the center and highlight how to mitigate losses to displaced residents.

We study the role of Dutch colonial institutions on urban development for the megacity of Jakarta, Indonesia. Using historical maps of Dutch settlements and a rich granular database, we implement a boundary discontinuity design comparing locations on either side of Dutch boundaries. We find that historical Dutch areas today have significantly lower parcel density, are more likely to have formally registered parcels, and have more regular parcel layout, pointing to the importance of planning and cadastral mapping. Dutch settlements are also more likely to appear formal, as per a photographic index that ranks the appearance of neighborhoods. We highlight the role of land market institutions over alternative channels, such as direct Dutch investments or natural advantage.

Millions of migrants in developing countries move to urban areas in search of better prospects, but access to public services varies widely within cities. Yet, we know little about spatial inequalities within cities in low- and middle-income countries. This paper investigates the spatial distribution of socio-economic status and public goods access within Brazilian cities, using high-resolution Census maps. I consider spatial metrics of “distance segregation”, capturing the physical proximity between neighborhoods of different socio-economic status. I document descriptive patterns of segregation by income, race, and informality and disparities in access to public goods within cities. To make progress on the identification of the impacts of residential patterns on public goods provision, I develop an instrumental variables strategy that leverages within-city geography to predict where the poor and rich live. I find that cities with greater distance between rich and poor have fewer households connected to sewerage and water, worse neighborhood quality, and lower access to public amenities.