No. 993: No Place Like Home? The Causal Effect of Forced Relocation from Central Addis Ababa
Gharad Bryan LSE Simon Franklin QMUL Tigabu Getahun Policy Studies Institute Ethiopia Sarah Winton LSE
October 1, 2025
Abstract
Do central slums provide essential economic and social benefits to the poor? We collected bespoke data for 5,000 households to study mass forced clearances in Addis Ababa. Evictees were offered alternative subsidized housing further from the center. Exploiting sharp clearance zone boundaries, regression-discontinuity estimates show negative impacts on social networks, but positive impacts on work, earnings, housing quality and environmental amenity. Relocating households close to their ex-ante neighbors eliminates social costs. Slums are not essential: relocation policies can be designed to fully compensate residents, and the sale value of cleared land more than covers the cost.
J.E.L classification codes: O18, R23, R31
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