The economic lives of the slums in Latin America : a first approach

Abstract

The high level of informality of slum dwellers puts them in a “black box”, where policy makers cannot access with certainty information about the effectiveness of their actions. This paper examines the economic lives of slum dwellers in Latin America. Using case studies of El Salvador, Chile and Uruguay, we inspect the socioeconomic characteristics and opportunities of slum dwellers in comparison with the situations of the poor in each country. We found that while slum dwellers on average present poorer housing conditions than the poor, they are richer and have better job opportunities. However, the slum heterogeneity presented in terms of poverty and informality is a challenge for a more comprehensive, targeted and coordinated public policy for social inclusion.