Informal housing, spatial spillovers, and labor market access in Brazil

Advisor: Thierry Verdier

In this work, I study the supply and demand for housing in the São Paulo Metropolitan Area, a major city in Brazil. Using detailed commuting data, I estimate a quantitative spatial model, in which agents make decisions on residence and workplace based on local rents, wages, commuting costs, and amenities. I propose an extension of the usual framework with a formal housing supply sector to include a competing informal one, an important institutional characteristic present in many developing countries. I quantify the spatial spillovers of this informal housing, and investigate its role in providing residents with improved access to the local labor market.