Sustaining the benefits of legal land titling

Giving land title to squatters increases housing investments and child health

The absence of formal property rights constitutes a severe limitation for the world’s poor. Researchers studied the effect of providing land title to squatters in poor areas of Argentina and Peru. Squatters who were granted land rights increased housing investment, reduced household size, and enhanced the education of their children relative to squatters who did not receive land rights. Their children were also healthier and had reduced teenage pregnancy rates. These studies show the importance of sound legal and governance systems for economic and health outcomes.

Reduce the costs of formalization to sustain the benefits of land titling

A follow-up study in Argentina checked the sustainability of the land titling policy after two decades. Most households had maintained the formal title to their land, but almost 30% of the land parcels were no longer properly titled. The legal costs of remaining properly titled were too high relative to the low value of the land, so many people could not afford to update the land title when the originally titled owner died, migrated, or sold their land. The researchers suggest that property formalization could be sustained through a process of land recordation, which would offer many of the legal protections of land titling but at a fraction of the cost to individuals. This research shows that legal and regulatory reforms can make the benefits of government policies like land titling more sustainable.

Do you have a study we should share for a future Facty Friday? Send an email to drg.el@usaid.gov!