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This paper estimates slum residents' willingness to pay for formalized land tenure in Pune, India. The results show that the legal assurance of slum residents' occupancy of their lands could benefit them. Previous studies have discussed the legal and non-legal factors that substantially influence the tenure security of residents in informal settlements; however, it remains unclear how and to what extent the assignment of legal property rights through the formalization of land tenure improves the tenure security of residents in informal settlements and living conditions, even in the presence of other legal and non-legal factors that also contribute to their tenure security. To address this question, this study focuses on the city of Pune, India, where government agencies have formalized slums by legally ensuring the occupancy of the residents under the "slum declaration." Applying a hedonic price model to an original household survey, this paper investigates how slum residents evaluate formalized land tenure. A spatial econometrics method is also applied to account for spatial dependence and spatially autocorrelated unobserved errors. The spatial hedonic analysis shows that the premium of slum declaration is worth 19.2% of the average housing rent in slums. The associated marginal willingness to pay is equivalent to 6.7% of the average household expenditure, although it is heterogeneous depending on a household's caste and other legal conditions. This finding suggests that the assurance of occupancy rights is a vital component of land-tenure formalization policy even if it does not directly provide full property rights.

Though previous studies have examined how formalising land tenure affects housing improvements in informal settlements, the role of tenure security and its long-term influence remain unclear. In response, this paper quantitatively examines the extent to which formalising land tenure by way of slum declaration has stimulated housing improvements during the last three decades in the slums of Pune, India. Since slum declaration guarantees residents occupancy but not full property rights, this study focuses on how tenure security contributes to housing outcomes, such as materials, size, the number of floors and the amount of money spent for the improvements. Using original household survey data, analysis involving propensity score matching and difference-in-differences methods reveals that slum declaration has tripled a household's likelihood of having added a second floor and, albeit less clear, increased the average amount of money spent on housing improvements. At the same time, slum declaration has not induced any improvement in housing materials, largely since many residents of non-formalised slums have also replaced materials. These results indicate that slum declaration, even in the long run, has continued to influence housing investments in Pune's slums, in terms of both type and amount spent, though residents of non-formalised slums have also come to enjoy certain de facto tenure security. Among other implications for policy, these findings underscore that governments should at least provide legal assurance of occupancy rights in informal settlements, even if active interventions such as slum upgrading and titling are currently difficult.

This paper estimates slum residents willingness to pay for formalized land tenure in Pune, India. In so doing, it offers evidence that the legal assurance of slum residents occupancy of their lands could benefit them. Previous studies have discussed legal and non-legal factors that substantially influence the tenure security of residents in informal settlements. However, it remains unclear to what extent, and how, the assignment of legal property rights through the formalization of land tenure improves the tenure security of residents in informal settlements and living conditions, even in the presence of other legal and non-legal factors that also contribute to their tenure security. To address the question, this study focuses on the city of Pune, India, where government agencies have formalized slums by legally ensuring the occupancy of the residents under slum declaration. Applying a hedonic price model to an original household survey, this paper investigates how slum residents evaluate formalized land tenure. A spatial econometrics method is also applied to account for spatially autocorrelated unobserved errors. The spatial hedonic analysis finds that the premium of slum declaration is worth 19 percent of the average housing rent in slums. The associated marginal willingness to pay is equivalent to 6 percent of the average household expenditure, although it is heterogeneous depending on a households caste and other legal conditions. This finding suggests that the assurance of occupancy rights is a vital component of land-tenure formalization policy even if it does not directly provide full property rights.

This paper investigates the extent to which slum notification, a tenure formalization policy that officially recognises settlements as slums and ensures the occupancy rights of the residents, has stimulated housing investment by the households in India. In using a nationally representative data set, propensity score methods are employed to reduce selection bias. This paper finds that given the observed household characteristics adjusted by propensity scores, slum notification will increase the average amount of money spent on housing construction, though the proportion of households who would improve their houses is estimated to be higher in non-formalized settlements. The findings suggest that not only formalizing slums but also supporting self-help efforts by the residents of non-formalized slums would be effective for improving their housing conditions.

AbstractThis paper examines spatial heterogeneity in the impacts of the early days of the COVID‐19 pandemic on urban household incomes in Ethiopia and Kinshasa, Democratic Republic of Congo. Combining new panel household surveys with spatial data, the fixed‐effects regression analysis for Ethiopia finds that households in large and densely populated towns were more likely to lose their labour incomes in the early phase of the pandemic and afterwards than other households. Disadvantaged groups, such as females, low‐skilled, self‐employed and poor, particularly suffered in those towns. In Kinshasa, labour income‐mobility elasticities are higher among workers—particularly female and low‐skilled workers—who live in areas that are located farther from the city core area. The between‐ and within‐city evidence from two Sub‐Saharan African countries points to the spatial heterogeneity of COVID‐19 impacts, implying the critical role of mobility and accessibility in urban agglomerations.

This paper examines spatial heterogeneity in the impacts of the early days of the COVID-19 pandemic on urban household incomes in Ethiopia and Kinshasa, Democratic Republic of Congo. Combining new panel household surveys with spatial data, the fixed-effects regression analysis for Ethiopia finds that households in large and densely populated towns were more likely to lose their labor incomes in the early phase of the pandemic, and their recovery was slower than other households. Disadvantaged groups, such as female, low-skilled, self-employed, and poor, particularly suffered in those towns. In Kinshasa, labor income-mobility elasticities are higher among workers—particularly female and/or low-skilled workers—who live in areas that are located farther from the city core area or highly dense and precarious neighborhoods. The between- and within-city evidence from two Sub-Saharan African countries points to the spatial heterogeneity of COVID-19 impacts, implying the critical role of mobility and accessibility in urban agglomerations.