David Escamilla-Guerrero (@descamillag.bsky.social)

Developing world cities: Poverty traps versus pathways to prosperity In higher-income countries, urban proximity has been shown to enhance workers’ skills and income, but less is known about low- and middle-income countries. This column examines how the income of initially poor workers in Brazil changes after urban migration. Wages go up immediately for migrants to both southern and northern Brazilian cities, but only in the wealthier southern cities do initially poor migrants see a longer-term positive effect. Workplace segregation appears to play a key role, as southern firms do more to bring skilled and unskilled workers together. https://cepr.org/voxeu/columns/developing-world-cities-poverty-traps-versus-pathways-prosperity