Working Paper: CEPR ID: DP12818
Authors: Fernando Aragon; Anke Kessler
Abstract: This paper examines the economic effects of existing private property rights on First Nations' reserves. We focus on three forms of land tenure regimes: lawful possession, designated land, and permits. These land regimes have been used to create individual land holdings, and grant secure and transferable rights of use of reserve land to band and non-band members. Using confidential Census micro-data and rich administrative data, we find evidence of improvements in home ownership and housing conditions, as well as increments in band's public spending. However, we find no significant impact on Aboriginal household income nor employment outcomes. Instead, we document that individual land holdings are associated with sizeable increases in the non-Aboriginal population. Our findings suggest that some caution is warranted when discussing the potential economic benefits of property right reforms for First Nations' communities.
Keywords: Property Rights; Institutions; Economic Development; First Nations
JEL Codes: O12; O43; P48; R14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| lawful possession (K11) | housing quality (R21) |
| lawful possession (K11) | likelihood of major repairs (R42) |
| lawful possession (K11) | number of recently built houses (R31) |
| lawful possession (K11) | household income (D19) |
| household income (D19) | non-band members' income (E25) |
| individual land holdings (Q15) | non-aboriginal population on reserve lands (J15) |