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Property rights on First Nations reserve land

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  • Fernando M. Aragón
  • Anke S. Kessler

Abstract

This paper examines the economic effects of existing private property rights on First Nations reserves. We focus on three regimes of land tenure: lawful possession, designated land and permits. These land regimes have been used to create individual landholdings and grant secure and transferable rights of use of reserve land. Using confidential census microdata and rich administrative data, we find evidence of a positive relationship between the use of these tenure regimes and homeownership rates, housing conditions and band's public spending. We also observe a positive relationship with average income. However, this last result is driven by the inflow of a non‐Indigenous population not by improvements in Indigenous households’ income or on‐reserve employment. Our findings thus suggest that while reforms to individual property rights on reserve have some positive effects, their scope remains limited and they are unlikely to constitute a transformative tool to alleviate poverty on reserve. Droits de propriété sur les terres de réserve des Premières Nations. Cet article examine les effets économiques des droits privés de propriété existants sur les réserves des Premières Nations. Nous nous attardons sur trois modes de possession des terres : la possession légitime, les terres désignées et les permis. Ces régimes ont été utilisés à la fois pour créer des propriétés foncières individuelles sur des terres de réserve, mais également pour garantir les droits d’utilisation protégés et transmissibles y afférant. À l’aide de micro‐données de recensement confidentielles et d’abondantes ressources administratives, nous avons découvert une relation positive entre l’utilisation de ces régimes fonciers et les taux d’accession à la propriété, les conditions de logement et les dépenses publiques des Premières Nations. Nous avons également observé un rapport positif avec le salaire moyen. Cependant, cette dernière observation résulte davantage d’un afflux d’une population non autochtone plutôt que d’une réelle amélioration des revenus des Autochtones ou de l’emploi dans les réserves. Ainsi, et bien que les réformes pour l’accès à la propriété privée dans les réserves ont eu quelques effets positifs, nos résultats suggèrent que leur portée reste limitée et qu’elles ne constituent pas de réels outils de transformation pour réduire la pauvreté dans les réserves.

Suggested Citation

  • Fernando M. Aragón & Anke S. Kessler, 2020. "Property rights on First Nations reserve land," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(2), pages 460-495, May.
  • Handle: RePEc:wly:canjec:v:53:y:2020:i:2:p:460-495
    DOI: 10.1111/caje.12434
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    Cited by:

    1. Deininger,Klaus W. & Ali,Daniel Ayalew, 2022. "How Urban Land Titling and Registry Reform Affect Land and Credit Markets : Evidencefrom Lesotho," Policy Research Working Paper Series 10043, The World Bank.
    2. Christian Dippel & Dustin Frye & Bryan Leonard, 2020. "Property Rights without Transfer Rights: A Study of Indian Land Allotment," NBER Working Papers 27479, National Bureau of Economic Research, Inc.
    3. Ali, Daniel Ayalew & Deininger, Klaus, 2024. "Using registry data to assess gender-differentiated land and credit market effects of urban land policy reform: Evidence from Lesotho," World Development, Elsevier, vol. 175(C).
    4. Kelly, Liam D. & Deaton, B. James, 2020. "Endogenous Institutional Change on First Nations Reserves: Selecting into the First Nations Land Management Act," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304294, Agricultural and Applied Economics Association.
    5. Laurel Wheeler, 2019. "Property Rights, Place-Based Policies, and Economic Development," Working Papers 19-16, Center for Economic Studies, U.S. Census Bureau.

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    More about this item

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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