Movin’ on up? The impacts of a large-scale housing lottery in Uruguay

Abstract

We report on a large-scale urban resettlement program in Uruguay. Under the program, thousands of low- to middle-income households were randomly assigned over the course of seven years to ownership of apartments in new buildings in more central areas and received a subsidy averaging $44,000 per household. We match applicants to comprehensive administrative data on employment, schooling, fertility, and voting over the decade after the move. We find that the program led to a small decline in fertility for women and a two-percentage-point increase in formal employment but did not affect school attendance. The relocation program did not result in transformative improvements in the lives of its beneficiaries, likely because of its minimum income requirements and the lack of strong spatial inequality in Uruguay.