Shack-dwellers to homeowners: Effects of subsidized low-income housing in Cape Town, South Africa

Presenter(s): Singumbe Muyeba, Research Associate, Centre for Social Science Research

Abstract / Description:

The provision of real property rights through titling and informal settlements upgrading is thought to have effects that improve slum conditions and reduce poverty. Given the increase in slum-dwellers in developing countries, this is an increasingly important subject. Hitherto, the evidence is scarce, exaggerated, and riddled with serious methodological problems. This paper investigates the effects of subsidized low income housing in Khayelitsha, an urban township in Cape Town, South Africa. It relies on evidence from circumstances in housing allocation that mimic a natural experiment. Using Difference-in-Differences estimation and OLS regressions, I find that freehold titling improved self-reported physical health status and led to an increase in the proportion of teenage pregnancies among beneficiaries. I do not find evidence in support of the hypotheses that real property rights increase labour market participation, household per-capita income and wealth, school dropout rates, psychological health status, and neighbourhood stability and citizen behaviour. The study contributes by examining a more holistic set of effects than most of the studies in the literature which tend to examine at the most three effects in one case study. This is useful for cross-country comparisons. In addition to examining the economic effects in this context, it also makes a more specific contribution by systematically examining the effects of titling on social and political facets in developing countries, which have hitherto remained largely understudied.

Tue, 01 Oct 2013 -
13:00 to 14:00

CSSR Seminar Room 4.29,Level 4 Leslie Social Science Building,Upper Campus