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The impact of land titling on labor allocation: Evidence from rural Peru

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  • Nakasone, Eduardo

Abstract

This paper analyzes the relationship between land property rights and household labor allocation. It posits that land titling has two opposite effects on labor decisions. On one hand, enhancement of tenure security should lead to reductions in guarding requirements and to increases in the hours that households spend off their land (Field effect). On the other hand, decreases in the risk of expropriation should lead to higher parcel-attached investments and to higher labor productivity related to land (productivity effect). To investigate this hypothesis, a massive land titling program in rural Peru (the Special Program of Land Titling, or PETT) is analyzed. Propensity score matching estimations suggest that the productivity effect is much larger than the Field effect, leading to overall increases in household labor allocations to agricultural self-employed activities. These estimations are robust to different specifications within a cross-section and a four-round panel dataset.

Suggested Citation

  • Nakasone, Eduardo, 2011. "The impact of land titling on labor allocation: Evidence from rural Peru," IFPRI discussion papers 1111, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1111
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    References listed on IDEAS

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    1. Sebastian Galiani & Ernesto Schargrodsky, 2004. "The Health Effects of Land Titling," Working Papers 78, Universidad de San Andres, Departamento de Economia, revised Dec 2004.
    2. Michael R. Carter & Pedro Olinto, 2003. "Getting Institutions “Right” for Whom? Credit Constraints and the Impact of Property Rights on the Quantity and Composition of Investment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 173-186.
    3. Frank Place & S. E. Migot-Adholla, 1998. "The Economic Effects of Land Registration on Smallholder Farms in Kenya: Evidence from Nyeri and Kakamega Districts," Land Economics, University of Wisconsin Press, vol. 74(3), pages 360-373.
    4. Sarah Gavian & Marcel Fafchamps, 1996. "Land Tenure and Allocative Efficiency in Niger," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 460-471.
    5. Larson, Janelle M. & Smith, Stephen M. & Abler, David G. & Trivelli, Carolina, 2000. "Land Titling In Peru: Is It Fulfilling Its Promise?," 2000 Annual meeting, July 30-August 2, Tampa, FL 21809, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 99-124.
    7. Pender, John L. & Kerr, John M., 1999. "The effects of land sales restrictions: evidence from south India," Agricultural Economics, Blackwell, vol. 21(3), pages 279-294, December.
    8. Máximo Torero & Erica Field, 2005. "Impact of Land Titles over Rural Households," OVE Working Papers 0705, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    9. Haggblade, Steven & Hazell, Peter B. R. & Reardon, Thomas, 2009. "Transforming the rural nonfarm economy: Opportunities and threats in the developing world," Issue briefs 58, International Food Policy Research Institute (IFPRI).
    10. Lancaster, Tony, 2000. "The incidental parameter problem since 1948," Journal of Econometrics, Elsevier, vol. 95(2), pages 391-413, April.
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    Cited by:

    1. Yu, Bingxin & Nin-Pratt, Alejandro & Funes, José & Gemessa, Sinafikeh Asrat, 2011. "Cereal production and technology adoption in Ethiopia:," IFPRI discussion papers 1131, International Food Policy Research Institute (IFPRI).
    2. David Laborde & Will Martin & Dominique van der Mensbrugghe, 2017. "Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions," Review of International Economics, Wiley Blackwell, vol. 25(2), pages 403-425, May.
    3. Cai, Ximing & Yang, Yi-Chen E. & Zhao, Jianshi & Ringler, Claudia, 2011. "Can water allocation in the Yellow River basin be improved?: Insights from a multi-agent system model," IFPRI discussion papers 1117, International Food Policy Research Institute (IFPRI).
    4. Zambrano, Patricia & Maldonado, Jorge H. & Mendoza, Sandra L. & Ruiz, Lorena & Fonseca, Luz Amparo & Cardona, Iván, 2011. "Women cotton farmers: Their perceptions and experiences with transgenic varieties: A case study for Colombia," IFPRI discussion papers 1118, International Food Policy Research Institute (IFPRI).
    5. Yamauchi, Futoshi & Liu, Yanyan, 2011. "Impacts of an early education intervention on students' learning achievement: Evidence from the Philippines," IFPRI discussion papers 1121, International Food Policy Research Institute (IFPRI).
    6. de Brauw, Alan & Gilligan, Daniel, 2011. "Using the regression discontinuity design with implicit partitions: The impacts of comunidades solidarias rurales on schooling in El Salvador," IFPRI discussion papers 1116, International Food Policy Research Institute (IFPRI).
    7. Takeshima, Hiroyuki & Salau, Sheu, 2011. "How does ownership of farm implements affect investment in other farm implements when farmers' liquidity constraint is relaxed?: Insights from Nigeria," IFPRI discussion papers 1133, International Food Policy Research Institute (IFPRI).
    8. Glendenning, Claire J. & Asenso-Okyere, Kwadwo & Babu, Suresh C., 2011. "Evaluation of value-added agricultural advisory services: Case study of agriclinics in Southern India," IFPRI discussion papers 1125, International Food Policy Research Institute (IFPRI).
    9. Morley, Samuel & Piñeiro, Valeria & Robinson, Sherman, 2011. "A dynamic computable general equilibrium model with working capital for Honduras:," IFPRI discussion papers 1130, International Food Policy Research Institute (IFPRI).
    10. Prasad, Sanjay K. & Pullabhotla, Hemant & Ganesh-Kumar, A., 2011. "Supply and demand for cereals in Nepal, 2010–2030:," IFPRI discussion papers 1120, International Food Policy Research Institute (IFPRI).

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    Keywords

    Property rights; land titling; labor allocation;

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