Entitled to Work: Urban Property Rights and Labor Supply in Peru
AbstractOver 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 InfoPaper 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.
Date of creation: Oct 2002
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Property rights; land titling; development policy; urban economics; time allocation and labor supply; employment determination and creation;
Find related papers by JEL classification:
- P14 - Economic Systems - - Capitalist Systems - - - Property Rights
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- J0 - Labor and Demographic Economics - - General
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
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