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Aid and Migration: An Analysis of the Impact of Progresa on the Timing and Size of Labour Migration

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Author Info
Angelucci, Manuela () (University College London, University of Arizona and IZA Bonn)

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Abstract

This paper models the short and medium-run impact of aid on migration, considering alternatively the effect of unconditional and conditional cash transfers to financially constrained households. Data from the evaluation of a Mexican development program, Progresa, are used to estimate the effect of the potential grant size on migration. The empirical analysis is consistent with model prediction. It shows that the program is associated with an increase in international migration, which is also a positive function of size of potential transfer. The grant may loosen financial constraints. At the same time, fine-tuned conditional grants targeting prospective migrants (in the form of secondary school subsidies) reduce the short-term migration probability. As regards medium-term migration, secondary school beneficiaries are not more likely to migrate than the control group after they complete the subsidised education cycle.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1187.

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Length: 41 pages
Date of creation: Jun 2004
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Handle: RePEc:iza:izadps:dp1187

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Related research
Keywords: migration aid Progresa Mexico

Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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References listed on IDEAS
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  1. Stark, Oded & Taylor, J Edward, 1991. "Migration Incentives, Migration Types: The Role of Relative Deprivation," Economic Journal, Royal Economic Society, vol. 101(408), pages 1163-78, September. [Downloadable!] (restricted)
  2. Guy Stecklov & Paul Winters & Marco Stampini & Benjamin Davis, 2003. "Can Public Transfers Reduce Mexican Migration? A study based on randomized experimental data," Working Papers 03-16, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA). [Downloadable!]
  3. DE JANVRY, Alain & DUBOIS, Pierre & SADOULET, Elisabeth, 2000. "Effects on School Enrollment and Performance of a Conditional Transfers Program in Mexico," IDEI Working Papers 114, Institut d'Économie Industrielle (IDEI), Toulouse, revised 2003. [Downloadable!]
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  4. Faini, Riccardo & Venturini, Alessandra, 1994. "Migration and Growth: The Experience of Southern Europe," CEPR Discussion Papers 964, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Faini, Riccardo & Venturini, Alessandra, 1993. "Trade, aid and migrations: Some basic policy issues," European Economic Review, Elsevier, vol. 37(2-3), pages 435-442, April. [Downloadable!] (restricted)
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