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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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  • Angelucci, Manuela

    ()
    (University of Michigan)

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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Bibliographic 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
Date of revision:
Handle: RePEc:iza:izadps:dp1187

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Related research

Keywords: migration; aid; Progresa; Mexico;

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References

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  1. Katz, Eliakim & Stark, Oded, 1986. "Labor Migration and Risk Aversion in Less Developed Countries," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 134-49, January.
  2. Dubois, Pierre & de Janvry, Alain & 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 Sep 2011.
  3. 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).
  4. Faini, Riccardo & Venturini, Alessandra, 1994. "Migration and Growth: The Experience of Southern Europe," CEPR Discussion Papers 964, C.E.P.R. Discussion Papers.
  5. Albarran, Pedro & Attanasio, Orazio P., 2002. "Do Public Transfers Crowd Out Private Transfers? Evidence from a Randomized Experiment in Mexico," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. 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.
  7. 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.
  8. Schultz, T. Paul, 2001. "School subsidies for the poor," FCND discussion papers 102, International Food Policy Research Institute (IFPRI).
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Citations

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Cited by:
  1. Sule Akkoyunlu, 2010. "Can trade, aid, foreign direct investments and remittances curb migration from Turkey?," Migration Letters, Transnational Press London, UK, vol. 7(2), pages 144-158, October.
  2. Djajić, Slobodan & Vinogradova, Alexandra, 2014. "Liquidity-constrained migrants," Journal of International Economics, Elsevier, vol. 93(1), pages 210-224.
  3. Guy Stecklov & Paul Winters & Marco Stampini & Benjamin Davis, 2005. "Do conditional cash transfers influence migration? A study using experimental data from the Mexican progresa program," Demography, Springer, vol. 42(4), pages 769-790, November.
  4. Antwi, James & Phillips, David C., 2013. "Wages and health worker retention: Evidence from public sector wage reforms in Ghana," Journal of Development Economics, Elsevier, vol. 102(C), pages 101-115.

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