The prevalence of untitled land in poor countries helps explain the international agricultural productivity differences. Since untitled land cannot be traded across farmers, it creates land misallocation and distorts individuals' occupational choice between farming and working outside agriculture. I build a two-sector general equilibrium model to quantify the impact of untitled land. I find that economies with higher percentages of untitled land would have lower agricultural productivity; land titling can increase agricultural productivity by up to 82.5 percent. About 42 percent of this gain is due to eliminating land misallocation, and the remaining is due to eliminating distortions in individuals' occupational choice.
"Untitled Land, Occupational Choice, and Agricultural Productivity."
American Economic Journal: Macroeconomics,
Human Capital; Skills; Occupational Choice; Labor Productivity
Agricultural Labor Markets
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Capitalist Systems: Property Rights
Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
Renewable Resources and Conservation: Land