Do slum upgrading programs impact school attendance?

Abstract

This study investigates the impact of slum upgrading programs on elementary school attendance, a strong predictor of dropout and adult outcomes. Slum upgrading programs are interventions in impoverished areas that involve building housing, roads, sewerage systems, and installing public lighting. Using administrative data on Uruguayan students, we examine the effects of slum upgrading programs on school attendance. The study employs a regression discontinuity design based on the eligibility rule that considers a slum eligible for the program when it has 40 or more dwelling units. The results show that students exposed to slum upgrading programs had 28 fewer absences (16 percent of the school year or 70 percent of the total missed days that qualify a student as having insufficient attendance), and lower probability of being recurrent absentees. This study provides insights into the impact of slum upgrading programs on human capital accumulation among low-income children.