How Does Land Title Affect Access to Credit? Empirical Evidence from an Emerging Economy

This paper studies the effects property rights on credit access using a unique data set based on a Brazilian land-titling program affecting 85,000 families. The causal role of land title is isolated by comparing two communities in Osasco, where some residential units are allocated titles and others not. Survey data is collected from residents before and after the title granting. In order to estimate land title impact, we have undertaken the Difference-in- Differences methodology. Some of our results suggest that land title increases the access to credit for about 60%. Additionally, land title impact by gender and credit type is presented and also positive.Property Rights, Land Title, Credit, Difference-in-Difference, and Differencein- Differences Matching Estimator

How land title affects the income of brazilian labor force?

A obtenção dos direitos de propriedade é considerada um determinante para o desenvolvimento econômico. Entretanto, a avaliação dos efeitos do título de propriedade é uma tarefa difícil. O Governo Brasileiro, por meio do programa intitulado “Papel Passado”, vem concedendo escrituras desde 2004 para mais de 85.000 famílias e ainda objetiva alcançar a marca de 750.000 famílias beneficiadas. Este artigo examina o impacto direto da obtenção do título de propriedade sobre o aumento de horas de trabalho e renda. A fim de isolar o papel causal do título concedido, o estudo utiliza uma comparação entre duas comunidades vizinhas na cidade de Osasco. O ponto chave, entretanto, é que uma das comunidades, Jardim Canaã, foi beneficiada pelo programa em 2007 e a outra, Jardim DR, devido a restrição orçamentária do governo, só fará parte do programa em 2011, e por este motivo tornou-se o grupo de controle. As estimações, geradas a partir da técnica econométrica Difference-in-Difference, sugerem o aumento das horas de trabalho e renda para as famílias que obtiveram os títulos, comparativamente aos indivíduos do grupo de controle. Tais observações podem prestar um relevante subsídio em relação a futuras políticas públicas com abordagem sobre informalidade, afetando assim o crescimento econômico.Secure property rights are considered a key determinant of economic development. However, the evaluation of the causal effects of land titling is a difficult task. The Brazilian government through a program called “Papel Passado” has issued titles, since 2004, to over 85,000 families and has the goal to reach 750,000. This paper examines the direct impact of securing a property title on the supply of work hours and income. In order to isolate the causal role of ownership security, this study uses a comparison between two close and very similar communities in the City of Osasco. The key point of this case is that some units get the program and others do not. One of them, Jardim Canaã, was fortunate to receive the titles in 2007, the other, Jardim DR, given fiscal constraints, only will be part of the program schedule in 2011, and for that reason became the control group. The estimates, generated using Difference-in-Difference econometric technique, suggest that titling results in a increase of adult labor suply and income for the families that received the title compared to the others. Such remarks can provide a relevant subsidize regarding future public tools to approach informality and affect economic growth

Property rights as a public policy tool : an empirical analysis of the social and economic effects

Secure property rights are considered a key determinant of economic development. However, the evaluation of the causal effects of land titling is a difficult task. The Brazilian government through a program called "Papel Passado" has issued titles, since 2004, to over 85,000 families and has the goal to reach 750,000. Furthermore, another topic in Public Policy that is crucial to developing economies is income generation and child labor force participation. Particularly, in Brazil, about 5.4 million children and teenagers between 5 and 17 years old are still working. This thesis examines the direct impact of securing a property title on income and child labor force participation. In order to isolate the causal role of ownership security, this study uses a comparison between two close and very similar communities in the City of Osasco case (a town with 650,000 people in the São Paulo metropolitan area). One of them, Jardim Canaã, was fortunated to receive the titles in 2007, the other, Jardim DR, given fiscal constraints, only will be part of the program schedule in 2012, and for that reason became the control group. Also, this thesis also aims to test if there is any relationship between land title and happiness. The estimates suggest that titling results in a substantial decrease of child labor force participation, increase of income and happiness for the families that received the title compared to the others