The effect of land tenure security on household labour supply: evidence from Vietnam (2008-2016)

Resumen

This paper investigates the impact of land tenure security on household labour supply in Vietnam, where the State owns all land and grants usufruct rights to individuals. The 1993 Land Law set usage rights for annual land at 20 years and perennial land at 50 years. In 2013, with usage rights for annual plots approaching expiration, the government passed the 2013 Land Law, extending usage rights for all land to 50 years. Utilizing this unexpected policy shift, we compare households with expiring rights (annual plots) to those with extended  rights (perennial plots). Results reveal that increased tenure security reduce household labour supply in agriculture, particularly from women, and spurred greater capital intensity and a reduction in landholdings.