Household Savings and Residential Mobility in Informal Settlements

25 Pages Posted: 24 Jun 2005

See all articles by Somik V. Lall

Somik V. Lall

World Bank

Uwe Deichmann

World Bank - Development Research Group (DECRG)

Ajay Suri

World Bank

Date Written: May 2005

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 housing sector, which has the dual benefits of improving service access and escaping social stigma. In this paper we investigate residential mobility among slum dwellers in Bhopal, India. Our 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. and Deichmann, Uwe and Suri, Ajay, Household Savings and Residential Mobility in Informal Settlements (May 2005). Available at SSRN: https://ssrn.com/abstract=748405

Somik V. Lall (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/slall

Uwe Deichmann

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Ajay Suri

World Bank

1818 H Street, N.W.
Washington, DC 20433
United States

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