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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:field_entitled_to_work

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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. Macours, Karen & de Janvry, Alain & Sadoulet, Elisabeth, 2004. "Insecurity of Property Rights and Matching in the Tenancy Market," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt8r7938m3, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Sebastian Galiani & Ernesto Schargrodsky, 2004. "Effects of Land Titling on Child Health," Research Department Publications 3184, Inter-American Development Bank, Research Department.
    3. Deininger, Klaus & Castagnini, Raffaella, 2006. "Incidence and impact of land conflict in Uganda," Journal of Economic Behavior & Organization, Elsevier, vol. 60(3), pages 321-345, July.
    4. 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.
    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, 2008. "Agricultural Outputs and Conflict Displacement: Evidence from a Policy Intervention in Rwanda," Economic Development and Cultural Change, University of Chicago Press, vol. 57(1), pages 31-66, October.
    7. Florence Kondylis, 2007. "Conflict-induced displacement and labour market outcomes: evidence from post-war Bosnia and Herzegovina," LSE Research Online Documents on Economics 19670, London School of Economics and Political Science, LSE Library.

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