Property Rights and Social Institutions in Urban Africa: Experimental Evidence from a Land Formalization Program in the DRC

Formal property rights to land remain rare in sub-Saharan Africa. We argue that social institutions shape citizens’ demand for land formalization. When offered the opportunity to formalize, citizens weigh the insurance and tenure-security benefits of informal institutions against their monetary and social obligations. We study a randomized land titling program in a large Congolese city that sharply reduced the costs of acquiring a title. The program markedly increased both initiation and receipt of titles. Demand was strongest among citizens more engaged in social institutions and closer to city chiefs, yet such ties did not predict completion. Program assignment also reduced participation in social institutions and worsened evaluations of chiefs. These findings suggest that, in urban settings where land values are higher and social institutions more costly, citizens may exit costly social institutions when formal alternatives become available, illustrating how formalization can reshape engagement with informal authority.