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On the Political Economy of Urbanization: Experimental Evidence from Mozambique

Alex Armand

Nova SBE, CEPR, Institute for Fiscal Studies, and NOVAFRICA

Frederica Mendonça

Nova SBE, and NOVAFRICA

Wayne Aaron Sandholtz

Nova SBE, CESifo, IZA, and NOVAFRICA

Pedro C. Vicente

Nova SBE, BREAD, CEPR, and NOVAFRICA

ISSN 2183-0843
Working Paper No 2403
September 2024

Abstract:

Urbanization is a force for economic structural change and is underway in Sub-Saharan Africa. However, the slow pace of these transformations in some countries likely results from contrary political interests at the central level. We study the political impacts of a randomized program integrating rural migrants in Mozambique, sponsored by a city government. In the program, local leaders had an active role in the face-to-face coaching of migrants. When looking at behaviors around the municipal elections of 2023, we find that the program increased the political mobilization of local leaders whom we observe conducting more electoral campaigning. Migrants turn out to the election more often, measured by recording inked fingers, and are observed to use more political objects, despite the limited labor market impacts of the integration program. We conclude that helping urbanization can be in the political interest of local governments.

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