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The spatial sorting of informal dwellers in cities in developing countries: Theory and evidence

Author

Listed:
  • Harris Selod

    (The World Bank - The World Bank - The World Bank)

  • Lara Tobin

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

We propose a theory of urban land use with endogenous property rights that applies to cities in developing countries. Households compete for where to live in the city and choose the property rights they purchase from a land administration which collects fees in inequitable ways. The model generates predictions regarding the levels and spatial patterns of residential informality in the city. Simulations show that land policies that reduce the size of the informal sector may adversely impact households in the formal sector through induced land price increases. Empirical evidence from a sub-Saharan African city supports the model's assumptions and outcomes.

Suggested Citation

  • Harris Selod & Lara Tobin, 2018. "The spatial sorting of informal dwellers in cities in developing countries: Theory and evidence," PSE Working Papers halshs-01703178, HAL.
    • Handle: RePEc:hal:psewpa:halshs-01703178
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01703178
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    References listed on IDEAS

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    Keywords

    Land markets; Property rights; Tenure security; Multiple sales;
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