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Can Non-Agricultural Employment Reduce Rural Poverty? Evidence from Mexico

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Author Info
Caridad Araujo
Abstract

This paper explores the role of the local context on the effectiveness of policy interventions in reducing poverty through non-agricultural rural employment (NARE). NARE is negatively associated to poverty in Mexico. Manufacturing employment is more poverty-reducing than services in semi urban municipalities. In turn, services employment matters more in rural than in semi urban areas. Factors associated to pro-poor NARE are low income inequality, dynamic agriculture, and government expenditures. Policy interventions in education and roads are poverty-reducing through manufacturing employment in semi urban municipalities and through services employment in all municipalities.

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Publisher Info
Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Cuadernos de Economía.

Volume (Year): 41 (2004)
Issue (Month): 124 ()
Pages: 383-399
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Handle: RePEc:ioe:cuadec:v:41:y:2004:i:124:p:383-399

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Related research
Keywords: Rural Employment; Poverty; Off-farm; Mexico;

Find related papers by JEL classification:
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Caridad Araujo & Alain de Janvry & Elisabeth Sadoulet, 2004. "Peer Effects in Employment: Results from Mexico's Poor Rural Communities," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 991, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
  2. Peter Lanjouw, 2007. "Rural Non-Farm Employment in India: Access, Income, farm, Poverty Impact," Working Papers id:913, esocialsciences.com. [Downloadable!]
  3. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August. [Downloadable!] (restricted)
  4. Datt, Gaurav & Ravallion, Martin, 1998. "Why Have Some Indian States Done Better Than Others at Reducing Rural Poverty?," Economica, London School of Economics and Political Science, vol. 65(257), pages 17-38, February. [Downloadable!] (restricted)
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  5. Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March. [Downloadable!] (restricted)
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