How do Property Rights Affect the Social Contract? A field Experiment in Mozambique

This study examines how formal property title affects two important aspects of citizens’ relationship with the state: political participation and tax compliance. The study is already at an advanced stage: we partnered with the municipal government of Quelimane, Mozambique, to randomize access to formal property title in two predominantly informal neighborhoods. In these neighborhoods, we worked with the Department of Urban Planning (DPU) to conduct a full property census and cadastral mapping, assessing which properties lacked title but could be legally formalized. Among the 792 eligible households, those randomly selected for treatment had their titling fees subsidized and administrative barriers to formalization removed. Preliminary evidence from a short-term follow-up survey shows that treated households were more likely to hold formal title to their property, reporting higher property values and lower household unemployment. Titles also increased political support for the municipal
government and contributions to a lab-in-the-field public goods game. We now seek funding to support additional household survey data collection and investments in municipal capacity to collect administrative tax data. These will capture medium-term effects on tax morale, compliance, and political engagement, as well as illuminating other outcomes and mechanisms such as investment in the property, labor market participation, and indices of trust and social capital. Conceptually, this project speaks to foundational debates on how public service delivery can build state legitimacy. Practically, it generates policy-relevant evidence on how local governments in low-income settings might mobilize revenue and trust by formalizing property rights.