@TechReport{iza:izadps:dp18177, author={Fagernäs, Sonja and Pelkonen, Panu and Segura, Juan Manuel del Pozo}, title={The Urban Learning Premium - Evidence from Peru}, year={2025}, month={Oct}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={18177}, url={https://www.iza.org/index.php/publications/dp18177}, abstract={We examine the urban learning and schooling premium in Peru using two approaches: 1) estimating the effect of local population density on pupils’ value-added in learning between grades two to eight, 2) quasi-experimental Census estimations on the effects of the duration of urban exposure in childhood on school attainment. Unconditional estimates show that a ten-fold increase in population density is associated with around 0.13 standard deviations higher value-added in learning. Conditional estimates suggest that this association is driven largely by sorting, captured mainly by household socio-economic status, and local area factors, reflecting agglomeration benefits. School resources, in turn, are unimportant. Finally, a higher population density also correlates with unobserved factors that can harm learning. The quasi-experimental estimations confirm a positive relationship between urban exposure and educational outcomes: a longer period of urban education leads to higher educational attainment and a higher likelihood of enrolment in the correct grade for age.}, keywords={agglomeration;neighborhoods;learning;urbanization;Latin America}, }