Land Markets and Equity of Land Distribution in Northwestern Tanzania

Land markets can have potentially divergent effects on the distribution of land. While they may lead to a concentration of land in the hands of a wealthy minority, they can also enhance equity by serving as an alternative avenue of land access for those with a limited inheritance. This paper explores the equity implications of land sales and rental markets in northwestern Tanzania. Using household-level data collected in 2014 and a control function approach to address potential endogeneity, we find that the land market enables households to adjust their farm size to compensate for a small inheritance. The rental market is particularly used by those with no inheritance to secure a landholding, while households with a larger initial endowment are more likely to dispose of land. Our results indicate that the local land market, characterized by widespread participation, ultimately increases the equity of land distribution.


Issue Date:
2016
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/235893
Total Pages:
31
JEL Codes:
D63; J16; Q12; Q15
Series Statement:
9239




 Record created 2017-04-01, last modified 2017-08-29

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