In the upcoming 10th Urbanization and Development Conference scheduled for March 30-31, 2026, in Washington DC: ➡️ https://lnkd.in/eDNhg_Sn, Oluchi Mbonu, Carolyn Pelnik, Claudia Rivas Rios, and Harris Selod explore how non-physical barriers such as information gaps, financial constraints, and psychological frictions can prevent workers and entrepreneurs from accessing the opportunities cities have to offer.
They show how barriers to urban mobility, information gaps, financial constraints, and psychological frictions limit access to jobs in cities. Based on Two recent studies from Kampala (Uganda) and Nairobi (Kenya) they show how targeted interventions can help unlock the potential of urban mobility.
Key take aways:
🔹 𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐠𝐚𝐩𝐬: Within a same city, profits can vary widely across neighborhoods. A study in Kampala, Uganda shows that many mobile entrepreneurs (including street vendors and motorcycle taxi drivers) lack information about where higher-profit locations are.
🔹𝐓𝐡𝐞 𝐜𝐨𝐬𝐭 𝐨𝐟 𝐦𝐨𝐯𝐢𝐧𝐠: The same study shows that even when moving cost are modest, cash constraints still prevent entrepreneurs from relocating. Providing information about profitable areas and financial support led to 45% profit increases. The effects faded after the intervention ended, suggesting that sustaining gains may require more than temporary support.
🔹 𝐓𝐡𝐞 𝐟𝐞𝐚𝐫 𝐨𝐟 𝐭𝐡𝐞 𝐮𝐧𝐤𝐧𝐨𝐰𝐧: Psychological frictions bias individuals toward familiar places, leading them to forgo opportunities farther away. In Nairobi, a single visit to an unfamiliar neighborhood shifted workers’ initial negative perceptions and increased willingness to work in new areas.
𝐓𝐡𝐞 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲: Complementing infrastructure investments with targeted approaches that reduce information gaps, ease liquidity constraints, and encourage exploration can help connect workers and entrepreneurs to better opportunities within the same city.
Blog-authored by the Centre for Economic Policy and Development Impact Evaluation (CEPDIME). Generating evidence for policy action.