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Does Migration Make Rural Households More Productive? Evidence from Mexico

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  • J. Edward Taylor
  • Alejandro Lopez-Feldman

Abstract

The migration of labour out of rural areas and the flow of remittances from migrants to rural households are an increasingly important feature of less developed countries. This paper explores ways in which migration influences incomes and productivity of land and human capital in rural households over time, using new household survey data from Mexico. Our findings suggest that a massive increase in migration to the United States increased per-capita incomes via remittances and also by raising land productivity in migrant-sending households. They do not support the pessimistic view that migration discourages production in migrant-sending economies, nor the view implicit in separable agricultural household models that migration and remittances influence household incomes but not production.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 46 (2010)
Issue (Month): 1 ()
Pages: 68-90

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Handle: RePEc:taf:jdevst:v:46:y:2010:i:1:p:68-90

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  1. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-417, November.
  2. Lucas, Robert E B, 1987. "Emigration to South Africa's Mines," American Economic Review, American Economic Association, vol. 77(3), pages 313-30, June.
  3. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May.
  4. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, octubre-d.
  5. Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
  6. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
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Cited by:
  1. Clemens, Michael A. & Tiongson, Erwin R., 2012. "Split decisions : family finance when a policy discontinuity allocates overseas work," Policy Research Working Paper Series 6287, The World Bank.
  2. Nguyen Viet Cuong & Daniel Mont, 2012. "Economic impacts of international migration and remittances on household welfare in Vietnam," International Journal of Development Issues, Emerald Group Publishing, vol. 11(2), pages 144-163, July.
  3. Boutin, Delphine, 2014. "Remittances and Child Labour in Africa: Evidence from Burkina Faso," IZA Discussion Papers 8007, Institute for the Study of Labor (IZA).
  4. Sylvie Démurger & Shi Li, 2012. "Migration, Remittances and Rural Employment Patterns: Evidence from China," Post-Print halshs-00744438, HAL.
  5. Karamba, Wendy R. & Quiñones, Esteban J. & Winters, Paul, 2011. "Migration and food consumption patterns in Ghana," Food Policy, Elsevier, vol. 36(1), pages 41-53, February.
  6. Feng Hu, 2013. "Does migration benefit the schooling of children left behind?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(2), pages 33-70, July.
  7. Pfutze, Tobias, 2012. "Does migration promote democratization? Evidence from the Mexican transition," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 159-175.
  8. Flore Gubert & Thomas Lassourd & Sandrine Mesplé-Somps, 2010. "Do remittances affect poverty and inequality? Evidence from Mali," Working Papers DT/2010/08, DIAL (Développement, Institutions et Mondialisation).
  9. repec:hal:wpaper:halshs-00744438 is not listed on IDEAS
  10. Marcus Böhme, 2013. "Does Migration Raise Agricultural Investment? An Empirical Analysis for Rural Mexico," Kiel Working Papers 1840, Kiel Institute for the World Economy.
  11. Delphine Boutin, 2011. "Envoi de fonds et allocation du temps des enfants au Niger : L’effet indirect des chocs négatifs," Larefi Working Papers 1105, Larefi, Université Bordeaux 4.

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