Property Rights and Investment in Urban Slums

Abstract

This paper examines the effect of changes in tenure security on residential investment in urban squatter neighborhoods. To address the endogeneity of property rights, I make use of variation in ownership status induced by a nation-wide titling program in Peru. In a difference-in-difference analysis, I compare the change in housing investment before and after the program among participating households to the change in investment among two samples of non-participants. My results indicate that strengthening property rights in urban slums has a significant effect on residential investment: the rate of housing renovation rises by more than two-thirds of the baseline level. The bulk of the increase is financed without the use of credit, indicating that changes over time reflect an increase in investment incentives related to lower threat of eviction. (JEL: O12, O18, P25, P26)

Can community-based land adjudication and registration improve household land tenure security? Evidence from Afghanistan

“…Legal titling also tends to generate land grievances because formalization of land ownership is inherently redistributive (Boone, 2013). In addition, although some studies find that legal titling increases investment in land or public infrastructure (Field, 2005;Galiani and Schargrodsky, 2010), others find that people are no more likely to perceive that their land tenure is secure after the state assigns them a legal title (Benjaminsen et al, 2009;Brasselle et al, 2002;Bromley, 2009;Bromley, 2000, 1997).…”

Impact of Gender in the Perception of Administrative Burdens among Young Entrepreneurs - Evidence from Slovakia

“…Here are some other examples of administrative burdens: in registering property: Simple, cheap and fast procedures of property registration lead to easier access to formal credit, increase the land value, create greater investment opportunities (Field, 2006) and provide significant bene fits for the whole economy (Deininger, 2003); in closing business: Bankruptcy procedures are also the form of administrative burden. Efficient bankruptcy procedures ensure higher probability of survival for firms in business problems while also guaranteeing higher recovery rates for creditors and hence greater ex ante credit availability (White & Berkowitz, 2004); in enforcing contracts: An excessive length of trials has a negative impact on credit availability, company´s entry and size ( Jappelli et al, 2005).…”

Going digital: Credit effects of land registry computerization in India

“…In urban areas, efforts to enhance tenure security have led to increased levels of self-assessed land values (Lanjouw and Levy, 2002), greater investment in housing, and female empowerment (Field, 2005). Receipt of titles allowed former squatters, especially women, to join formal labor markets instead of staying at home to guard their land, thereby increasing their income and reducing child labor (Field, 2007).…”