Housing Policy in Developing Countries : The Importance of the Informal Economy

All countries have a formal economy and an informal economy. But, on average, in developing countries the relative size of the informal sector is considerably larger than in developed countries. This paper argues that this has important implications for housing policy in developing countries. That most poor households derive their income from informal employment effectively precludes income-contingent transfers as a method of redistribution. Also, holding fixed real economic activity, the larger is the relative size of the informal sector, the lower is fiscal capacity, and the more distortionary is government provision of a given level of goods and services, which restricts the desirable scale and scope of government policy. For the same reasons, housing policies that have proven successful in developed countries may not be successful when employed in developing countries.

Bibliographic Details

Main Author:	Arnott, Richard
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2008
Subjects:	AFFORDABLE HOUSING, AUTOMOBILE OWNERSHIP, BANKS, BASIC EDUCATION, BONDS, BORROWING, BUILDING CODES, BUILDING MATERIALS, CENTRAL GOVERNMENTS, CENTRAL] GOVERNMENTS, CITIES, CIVIL SERVICE, CLINICS, COMMUNITIES, COMMUNITY PARTICIPATION, COUNTRYSIDE, CRIME, DEBT, DECENTRALIZATION, DECONCENTRATION, DWELLING, ECONOMETRICS, ECONOMIC EFFICIENCY, ECONOMIC GROWTH, ELECTRICITY, EMPLOYMENT, ENTREPRENEURSHIP, EVASION, EVICTION, EXTERNALITIES, FINANCIAL CRISES, FINANCIAL INSTITUTIONS, FINANCIAL MARKETS, FISCAL FEDERALISM, FISCAL POLICIES, GOVERNMENT HOUSING, GOVERNMENT INTERVENTION, HABITAT, HEALTH EXPENDITURES, HEALTH SERVICES, HOME OWNERSHIP, HOMELESSNESS, HOMEOWNERS, HOUSEHOLDS, HOUSING, HOUSING CONDITIONS, HOUSING CONSTRUCTION, HOUSING DEVELOPMENT, HOUSING FINANCE, HOUSING FOR THE POOR, HOUSING MARKET, HOUSING MARKETS, HOUSING NEEDS, HOUSING POLICY, HOUSING PROBLEMS, HOUSING PROGRAMS, HOUSING PROJECTS, HOUSING PROVISION, HOUSING SUBSIDIES, HOUSING SUBSIDY, HOUSING UNITS, HUMAN SETTLEMENTS, INCOME, INCOME TAXES, INFORMAL HOUSING, INFORMAL SETTLEMENTS, INSTITUTIONAL REFORM, INTEREST RATES, LABOR MARKET, LAND TAXATION, LAND TENURE, LAND USE, LAWS, LICENSES, LIVING CONDITIONS, LOCAL AUTHORITIES, LOCAL GOVERNMENTS, LOCAL LEVEL, MATCHING GRANTS, MICROFINANCE, MIGRATION, MUNICIPALITIES, NATIONAL GOVERNMENTS, NEIGHBORHOOD, NEIGHBORHOODS, OCCUPANCY, OCCUPATION, OVERCROWDING, OWNER OCCUPANCY, PER CAPITA INCOME, POLITICAL ECONOMY, POOR NEIGHBORHOODS, POVERTY REDUCTION, PRIVATE HOUSING, PRIVATE SECTOR, PRIVATIZATION, PROFITABILITY, PROPERTY RIGHTS, PROPERTY TAXES, PROVISION OF INFRASTRUCTURE, PUBLIC, PUBLIC BUILDINGS, PUBLIC CHOICE, PUBLIC ECONOMICS, PUBLIC EXPENDITURE, PUBLIC EXPENDITURES, PUBLIC FUNDS, PUBLIC GOODS, PUBLIC HOUSING, PUBLIC INFRASTRUCTURE, PUBLIC PARTNERSHIPS, PUBLIC POLICY, PUBLIC SECTOR, PUBLIC SERVICE, PUBLIC SERVICE PROVISION, PUBLIC SERVICES, PUBLIC WORKS, RENT CONTROL, RENTAL HOUSING, RENTING, RENTS, RESOURCE MOBILIZATION, REVENUE SOURCES, SAVINGS, SELF-HELP, SELFHELP HOUSING, SETTLEMENT, SETTLEMENTS, SEWAGE, SHELTER, SLUM, SLUMS, SOCIAL WELFARE, SOLID WASTE DISPOSAL, SQUATTER, SQUATTER SETTLEMENTS, SQUATTERS, SUBSIDIARY, SUBSIDIZED HOUSING, TAX, TAX RATES, TAX REVENUE, TAX REVENUES, TAXATION, TRAFFIC, TRAFFIC CONGESTION, URBAN DEVELOPMENT, URBAN HOUSING, URBAN INFRASTRUCTURE, URBAN LAND, URBAN POPULATION, URBANIZATION, WATER SUPPLY, ZONING,
Online Access:	http://documents.worldbank.org/curated/en/573081468149693974/Housing-policy-in-developing-countries-the-importance-of-the-informal-economy http://hdl.handle.net/10986/28043
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