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How land title affects child labor ?

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  • Moura, Mauricio
  • da Silveira Bueno, Rodrigo De Losso
  • Leony, Larissa

Abstract

Secure property rights are considered a key determinant of economic development. However, evaluation of the causal effects of land titling is a difficult task. Since 2004, the Brazilian government, through a program called"Papel Passado,"has issued titles to more than 85,000 families and has the goal to reach 750,000. Another topic in public policy that is crucial for developing economies is child labor force participation. In Brazil, about 5.4 million children and teenagers between 5 and 17 years old are working full time. This paper examines the direct impact of securing a property title on child labor force participation. In order to isolate the causal role of ownership security, this study uses a comparison between two close and similar communities in the City of Osasco case (a town with 650,000 people in the São Paulo metropolitan area). The key point of this case is that some units participate in the program and others do not. One of them, Jardim Canaã, received land titles in 2007; the other, Jardim DR, given fiscal constraints, will not be part of the program until 2012, and for that reason became the control group. Estimates, generated using the difference-in-difference econometric technique suggest that titling results in a substantial decrease in child labor force participation for the families that received the title compared with the others. These findings are relevant for future policy tools for dealing with informality and how it affects economic growth.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5010.

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Date of creation: 01 Jul 2009
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Handle: RePEc:wbk:wbrwps:5010

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Keywords: Labor Policies; Access to Finance; Debt Markets; Gender and Law;

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  1. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1995. "Power, distortions, revolt and reform in agricultural land relations," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 42, pages 2659-2772 Elsevier.
  2. Jean O. Lanjouw & Philip I. Levy, 2002. "Untitled: A Study of Formal and Informal Property Rights in Urban Ecuador," Economic Journal, Royal Economic Society, vol. 112(482), pages 986-1019, October.
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  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. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal Of Fortune: Geography And Institutions In The Making Of The Modern World Income Distribution," The Quarterly Journal of Economics, MIT Press, vol. 117(4), pages 1231-1294, November.
  7. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
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  9. Torstensson, Johan, 1994. "Property Rights and Economic Growth: An Empirical Study," Kyklos, Wiley Blackwell, vol. 47(2), pages 231-47.
  10. Lee J. Alston & Gary D. Libecap & Robert Schneider, 1996. "The Determinants and Impact of Property Rights: Land Titles on the Brazilian Frontier," NBER Working Papers 5405, National Bureau of Economic Research, Inc.
  11. Jimenez, Emmanuel, 1984. "Tenure Security and Urban Squatting," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 556-67, November.
  12. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-61, April.
  13. Erica Field, 2007. "Entitled to Work: Urban Property Rights and Labor Supply in Peru," The Quarterly Journal of Economics, MIT Press, vol. 122(4), pages 1561-1602, November.
  14. Carter, Michael R. & Olinto, Pedro, 2000. "Getting Institutions 'Right' for Whom: Credit Constraints and the Impact of Property Rights on the Quantity and Compostiton of Investment," Staff Paper Series 433, University of Wisconsin, Agricultural and Applied Economics.
  15. Martin Ravallion & Emanuela Galasso & Teodoro Lazo & Ernesto Philipp, 2005. "What Can Ex-Participants Reveal about a Program’s Impact?," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
  16. Heady, Christopher, 2003. "The Effect of Child Labor on Learning Achievement," World Development, Elsevier, vol. 31(2), pages 385-398, February.
  17. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
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