Property rights and investment in urban slums

“…reverse effect of investment on household or community tenure security may be stronger in urban than in rural 1 Many authors including Feder (1998), Besley (1995), Banerjee et al. (2002) and Alston et al. (1996) provide evidence that lack of property title affects agricultural investment demand.”

“…reverse effect of investment on household or community tenure security may be stronger in urban than in rural 1 Many authors including Feder (1998), Besley (1995), Banerjee et al. (2002) and Alston et al. (1996) provide evidence that lack of property title affects agricultural investment demand.”

“Many authors including Feder et al. (1998), Besley (1995), Banerjee, Gertler, and Ghatak (2002), and Alston, Libecap, and Mueller (1996) provide evidence that lack of property title affects agricultural investment demand Other work, such as Migot-Adholla, Hazell, and Place (1991); Place and Otsuka (2002), and Pinckney…”

“In urban areas, efforts to enhance tenure security have increased self-assessed land values (Lanjouw and Levy 2002), investment in housing (Galiani and Schargrodsky 2005), and female empowerment (Field 2005).”

“In Peru, evidence on improvements in housing between 1994/95 and 1999/2000 suggests that, for titled households, rates of house renovation increased more than two-thirds above baseline levels, though most of the increase was financed out of pocket rather than through credit (Field 2005).”

“Field, E (2005), “Property rights and investment in urban slums”, Journal of European Economic Association Vol 2, No 3, April–May, pages 279–290.”

“In slums specifically, two studies (16, 17) exploited natural experiments in which title was assigned to households in intervention but not control slums without regard to any particular feature of the slums in question.”

“26 As already observed, evidence concerning the first channel seems weak in urban areas since neither Field and Torero (2006) nor Galiani and Schargordsky (2006) find strong effects of titling on access to credit. The evidence on the role of tenure security on labour market outcomes is mixed. Field (2006) shows that t…”

“Morever, using a difference-in-difference identification strategy, Field 2005) finds that strengthening property rights in urban slums in eru has a significant effect on housing renovation investment. hat author finds that the increase in housing investment was ainly financed without the use of…”

“Pr(yit = 1) = g(α1TreatIndi ∗ Postt + α2Postt + α3TreatIndi ∗ Postt ∗ h̃i + α4TreatSpousei ∗ Postt +α5TreatSpousei ∗ Postt ∗ h̃i + α6xit + γi + it) (18)”

“…on land tenure formalization, both for rural areas (see Feder et al., 1988, Feder and Nishio, 1998, and Deininger, 2003) and for urban areas (see Field, 2005 and 2007, Galiani and Schargrodsky, 2004, Di Tella et al., 2007), exclusively focuses on some specific potential consequences of land…”

“[16] Field, Erica [2005], “Property Rights and Investment in Urban Slums”, Journal of the European Economic Association, Papers and Proceedings, 3(2-3), 279-290.”

“In urban areas, efforts to enhance tenure security have led to higher levels of self-assessed land values (Lanjouw and Levy 2002), increased investment in housing (Galiani and Schargrodsky 2005) and female empowerment (Field 2005).”

“The change of land property rights affects land development and economic performance (Besley, 1995; Field, 2005; Galiani, 2010; Goldstein & Udry, 2008).”

“A pair of additional papers by Field (2005, 2007) focuses on the effect of tenure insecurity (and the resulting need to defend the squatter’s dwelling) on labor force participation as well as the effect on investment in property improvements. A final paper by Hidalgo et al. (2010) studies land invasions by squatters i…”

“I separate the male treatment group (Property = 1) from the female treatment group (Property = 1) by identifying households living in stateowned housing with only the head or the spouse of the head employed in the state sector in 1989 (or the next pre-reform wave for which data is available).(7) In the majority of sta…”

“Several studies show that increased tenure security in the form of formalization does not necessarily lead to collateral and credit access (e.g. Field, 2005, 2007; Shipton, 1992; Galiani and Schargrodsky, 2010), and doubts are raised as to whether more land market transactions are necessarily…”

“She also finds significant effects on housing investment associated with titling, but this investment is financed without the use of credit (Field 2005) and, in particular, that titling has no effect on formal credit from private banks (Field and Torero 2003).”

“…contribute to the broader literature on the connection between land rights, land quality, and indigenous poverty outside the United States (see, e.g., Alston et al. 1996, Field 2005, Galiani and Schargrodsky 2010, 2012, Chernina et al. 2014, de Janvry et al. 2015, Alix-Garcia and Sellars 2018).”

“Several recent papers examine the impact of land titling in Peru but focus on the urban areas within the country, including Lima, Peru’s capital (Field 2003, 2005; Field and Torero 2004).”

“We now turn to our empirical examination of whether 6 For a detailed analysis on the impact of land titling on securing property rights see Do and Iyer (2003), Field (2005), Field and Torero (2006), and Galiani and Schargrodsky (2006).”

“The role of property rights in land development is a central issue, and the arrangement of property rights affects land development and economic performance (Cheung, 1974, 1998; Field, 2005; Goldstein and Udry, 2008; Lai and Lorne, 2014).”

“Field (2005) and Galiani and Schargrodsky (2010) exploit quasi-experimental settings, finding that titling programmes prompted housing investment in urban slums in Peru and Buenos Aires, respectively.”

“Another study of the effects of land titles using a quasi-experimental design is by Field (2005), who exploited the variation in ownership status induced by a nationwide titling program in Peru in which 1.2 million property titles were distributed to urban squatters on public land between 1996 and 2003. Making use of…”

“…economics literature posits that the assignment of legal property rights through the formalization of land tenure enhances the tenure security of residents in informal settlements and stimulates their housing investment (Demsetz, 1967; World Bank, 1993; Field, 2005; Galiani and Schargrodsky, 2010).”

“The last point stands in contrast to the literatureömuch of which argues over the relative salience and efficacy of one component over the others in influencing living conditions (eg Field, 2005; Gulyani and Bassett, 2007; Wegelin and Borgman, 1995).”

“15 For the linkages between these reform measures and investment growth, see Reinikka and Svensson (2002); Field (2005); Wacziarg and Welch (2008); Schivardi and Viviano (2011); Munemo (2014); Corcoran and Gillanders (2015); Calcagnini, Ferrando, …”

“While there is a broad literature on the e ects of slum living conditions on slum residents (Field, 2007, 2005; Galiani & Schargrodsky, 2010; Galiani, Gertler, Undurraga, Cooper, Martínez & Ross, 2016; Kesztenbaum & Rosenthal, 2016), no study has looked at the spatial reallocation e ects of slum…”

“This is related to the hypothesis of Field (2005) who argues households increase their labour supply when security of tenure is improved and they less likely to fear expropriation when they are out of the home.”

“Although the Peruvian program has led to an increase in housing investment ( Field, 2005a ), baseline plumbing investment rates among beneficiaries (1.5‐3% annually) are probably too low to alter nutrition in the short run.”

“Another set of papers focused on urban land policy in Latin America finds that land titling increases labor supply and investment (Besley, 1995; Field, 2005; Galiani and Schargrodsky, 2010).”

“These findings corroborate in situ upgradation and tenure security in squatter/slum settlements, as revealed from other low-income cities such as Peruvian cities (Field, 2005).”

“Finally, if a (well-functioning) cadastre increases tenure security or access to credit, it can encourage investments that ultimately increase the value of properties (e.g., Alston, Libecap, and Schneider 1996; Field 2005; Galiani and Schargrodsky 2010).”

“Alternatively, defensive expenditures could pay for a security force to defend the settlement, or they could represent lost labor income due to time spent by squatters in protecting their plots (as documented by Field (2007)).”

“These results are consistent with other studies, such as Field (2005) and Galiani and Schargrodsky (2010), who also find that residential property rights incentivize investment (in physical and human capital) but have much smaller effects on income and poverty reduction.”

“Although the evidence for urban areas has grown, it seems to be concentrated in a few countries such as Peru (Field and Torero, 2002; Field, 2005; Field, 2007; Field and Torero, 2008), Argentina (Galiani and Shargrodsky, 2005, 2010), Brazil (Andrade, 2006; Moura et al., 2009, 2013, 2014), and…”

“Recent studies have found that investment in housing increased after a titling programme (Deininger and Chamorro, 2002; Field, 2005), but older studies described a more nuanced relationship between property rights and investment.”

“3 More generally, it relates to the micro-economic literature on the impact of property rights (Besley, 1995; Field, 2005, 2007; Galiani and Schargrodsky, 2007; Jacoby et al., 2002; Lanjouw and Levy, 2002). cooperatives had fallen to 37% of the agricultural land, while household farms cultivated…”

“This article focuses primarily on the relationship between tenure security and quality of housing (Field 2005; Huchzermeyer 2008; Gelder 2009; Nakamura 2014).”

“…at least 80% of the lots having no active conflict over property rights (this will prove important in interpreting the welfare implications of our results, and presents a contrasting ownership environment to the property titling programs studied by Field 2005, and Galiani and Schargrodsky 2010).”

“…evidence that land titling initiatives may benefit the poor by increasing investment in land (Brasselle, Gaspart, & Platteau, 2002; Do & Iyer, 2008; Field, 2005; Galiani & Schargrodsky, https://doi.org/10.1016/j.habitatint.2019.102048 Received 24 November 2018; Received in revised form 26 July…”

“If C(I) < V (I), then insecure property rights lead to underinvestment, lower property prices, and adverse labor market and housing outcomes (Besley 1995; Field 2005; Hornbeck 2010).”

“Slum areas are characterized by a variety of social, economic, and infrastructural constraints [20,37,45].”

“Some of these studies estimate standard hedonic price functions using LDC data (Follain, Lim and Renaud (1980, 1982), Follain and Jimenez (1985)), while others constrast estimate hedonic functions for informal and formal areas to measure the price discount associated with tenure insecurity (Jimenez (1984), Friedman, J…”

“Studies have also shown that increased tenure security can spur similar investments in housing units (e.g. De Soto, 2000; Field, 2005; Friedman et al., 1988), raising the possibility that those actions are endogenous to our model.”

“…years, most of the research has focused on calculating the value of legal titles—how titling programs have increased tenure security, promoted investment, and the value of the property (e.g., Galiani and Schargrodsky 2010; Field 2005, 2007; Besley 1995; Alston and Libecap 1996; Alston et al. 1995).”

“…improvement in employment and income for adults and decrease in child labor (Field, 2007), gender empowerment (Field, 2003), improved child health and education, and lower teen pregnancy rates, smaller households, and increased investments (Galiani and Schargrodsky, 2004, 2010, 2011; Field, 2005).”

“Most closely related is Field (2005, 2007) who studies the impactof property rights on investment in urban housing.”

“Field (2004; 2005; 2007) find that an urban titling initiative in Peru significantly increased household labor supply and household investments and renovations, and reduced fertility.”

“Some studies find title might improve investment in one’s own properties and lead to other improvements in life (Field, 2005; galiani and Schargrodsky, 2010).”

“The micro-literature on property rights has attempted to disentangle some of the underlying mechanisms by focusing on the impact of property rights on credit and investment (e.g. Besley, 1995; Field, 2005; Galiani and Schargrodsky, 2005) and on land allocation (e.g. Lanjouw and Levy, 2002).”