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Entitled to Work: Urban Property Rights and Labor Supply in Peru

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  • Erica Field

    (Princeton University)

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    Abstract

    Over the past decade, the Peruvian government has issued property titles to over 1.2 million urban households, the largest government titling program targeted to urban squatters in the developing world. This paper examines the labor market effects of increases in tenure security resulting from the program. In particular, I study the direct impact of securing a property title on hours of work, substitution of home for market work and substitution of adult for child labor. To isolate the causal role of ownership security I make use of differences across regions induced by the timing of the program and differences across target populations in the level of pre-program tenure security. My estimates suggest that titling results in a substantial increase in labor hours, a shift in labor supply away from work at home to work in the outside market and substitution of adult for child labor. For the average squatter family, granting of a property title is associated with a 17% increase in total household work hours, a 47% decrease in the probability of working inside the home, and a 28% reduction in the probability of child labor.

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    Bibliographic Info

    Paper provided by Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies. in its series Working Papers with number 180.

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    Date of creation: Oct 2002
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    Handle: RePEc:pri:rpdevs:180

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    Related research

    Keywords: Property rights; land titling; development policy; urban economics; time allocation and labor supply; employment determination and creation;

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    Cited by:
    1. Jonathan Conning & Michael Kevane, 2003. "Why isn't there more Financial Intermediation in Developing Countries?," Hunter College Department of Economics Working Papers 214, Hunter College: Department of Economics.
    2. Sebastian Galiani & Ernesto Schargrodsky, 2004. "Effects of Land Titling on Child Health," RES Working Papers 3184, Inter-American Development Bank, Research Department.
    3. Lee J. Alston & Edwyna Harris & Bernardo Mueller, 2009. "De Facto and De Jure Property Rights: Land Settlement and Land Conflict on the Australian, Brazilian and U.S. Frontiers," NBER Working Papers 15264, National Bureau of Economic Research, Inc.
    4. repec:cdl:agrebk:27902 is not listed on IDEAS
    5. Bernardo Mueller & Lee Alston & Edwyna Harris, 2011. "De Facto And De Jure Property Rights:Land Settlement And Land Conflict On The Brazilian Frontier In The 19thcentury," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 060, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    6. Florence Kondylis, 2007. "Agricultural Outputs and Conflict Displacement: Evidence from a Policy Intervention in Rwanda," HiCN Working Papers 28, Households in Conflict Network.

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