Gulyani, SumilaTalukdar, Debabrata2012-03-302012-03-302008World Development0305750Xhttps://hdl.handle.net/10986/5807This study of 1,755 households in Nairobi's slums challenges the conventional belief that slums offer low-quality, low-cost shelter to a population that cannot afford better standards. In Nairobi, slums provide low-quality but high-cost shelter. Although slum residents pay millions of dollars in rents annually, and better quality units command higher rents, very little is being re-invested to upgrade quality. To resolve the challenge that the Nairobi puzzle poses for theory and practice, we develop a new analytical framework for understanding quality of living conditions. Improving conditions in Nairobi's slums requires, we argue, two simultaneous interventions: alteration of the tenure mix to enhance owner occupancy and infrastructure investment.ENNational Government Expenditures and Related Policies: InfrastructuresOther Public Investment and Capital Stock H540Economic Development: Human ResourcesHuman DevelopmentIncome DistributionMigration O150Economic Development: Regional, Urban, and Rural AnalysesTransportation O180Urban, Rural, and Regional Economics: Regional MigrationRegional Labor MarketsPopulationNeighborhood Characteristics R230Housing Supply and Markets R310Public Facility Location AnalysisPublic Investment and Capital Stock R530Journal ArticleWorld Bank