Working Paper: NBER ID: w22482
Authors: Sebastian Galiani; Ernesto Schargrodsky
Abstract: In the last years, several countries implemented policy interventions to entitle urban squatters, encouraged by the results of studies showing large welfare gains from entitlement. We study a natural experiment in the allocation of land titles to very poor families in a suburban area of Buenos Aires, Argentina. Although previous studies on this experiment have found important effects of titling on investment, household structure, educational achievement, and child health, in this article we document that a large fraction of households that went through a situation at which formalization was challenged (death, divorce, sale/purchase), ended up being de-regularized. The legal costs of remaining formal seem too high relative to the value of these parcels and the income of their inhabitants.
Keywords: No keywords provided
JEL Codes: P14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| formal land ownership (Q15) | investment (G31) |
| formal land ownership (Q15) | child health (I19) |
| legal costs of maintaining formal ownership (G32) | likelihood of deregularization (L51) |
| lack of formalization (J46) | high rates of deregularization (L51) |
| high legal and transaction costs (K25) | high rates of deregularization (L51) |