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Inter-Generational Effects of Titling Programmes: Physical vs. Human Capital

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  • Néstor Gandelman

Abstract

Programmes aimed at giving legal ownership titles to the occupants of land (‘titling programmes’) are associated with an income (or wealth) effect that induce higher expenditure on normal goods like education and health services. There is also a substitution effect: the elimination of expropriation risk makes home investment more attractive and increases the ‘opportunity cost’ of other forms of spending. The net effect on human capital is ambiguous. Using data from a natural experiment in Uruguay we find that titling favours home investment to the detriment of some dimensions of human capital investment for children of 16 and under.

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  • Néstor Gandelman, 2016. "Inter-Generational Effects of Titling Programmes: Physical vs. Human Capital," Journal of Development Studies, Taylor & Francis Journals, vol. 52(3), pages 331-342, March.
    • Handle: RePEc:taf:jdevst:v:52:y:2016:i:3:p:331-342
    DOI: 10.1080/00220388.2015.1075977
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    References listed on IDEAS

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    1. Néstor Gandelman, 2008. "Titling and Chronic Diseases: Evidence from A Natural Experiment in Uruguay," IDB Publications (Working Papers) 42938, Inter-American Development Bank.
    2. Alston, Lee J & Libecap, Gary D & Schneider, Robert, 1996. "The Determinants and Impact of Property Rights: Land Titles on the Brazilian Frontier," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 12(1), pages 25-61, April.
    3. Field, Erica Marie, 2005. "Property Rights and Investment in Urban Slums," Scholarly Articles 3634150, Harvard University Department of Economics.
    4. Erica Field, 2007. "Entitled to Work: Urban Property Rights and Labor Supply in Peru," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1561-1602.
    5. Brasselle, Anne-Sophie & Gaspart, Frederic & Platteau, Jean-Philippe, 2002. "Land tenure security and investment incentives: puzzling evidence from Burkina Faso," Journal of Development Economics, Elsevier, vol. 67(2), pages 373-418, April.
    6. Erica Field, 2005. "Property Rights and Investment in Urban Slums," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 279-290, 04/05.
    7. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-937, October.
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    Cited by:

    1. Nestor Gandelman, 2009. "Demand constraints in a titling program in Uruguay," Documentos de Investigación 51, Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales.
    2. Steven B. Caudill & Stephanie O. Crofton & João Ricardo Faria & Neela D. Manage & Franklin G. Mixon & Mary Greer Simonton, 2020. "Property confiscation and the intergenerational transmission of education in post-1948 Eastern Europe," Public Choice, Springer, vol. 184(1), pages 1-41, July.

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