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The Effect of Agricultural Subsidies on Migration and Agricultural Employment

Author

Listed:
  • John Scott-Andretta

    () (Division of Economics, CIDE)

  • Alfredo Cuecuecha

Abstract

Procampo was launched in 1994 to help the transition from low productivity activities to high productivity activities, among other policy objectives. We investigate the effects of Procampo on migration flows from Mexico to third countries (mainly the US), and the employment dynamics in the agricultural sector. Our results show that Procampo reduces the migration flows from Mexico to the US, while we find that does not benefit all agricultural job creation in Mexico. It benefits corn and beans job creation while it affects negatively job creation in other agricultural crops.

Suggested Citation

  • John Scott-Andretta & Alfredo Cuecuecha, 2010. "The Effect of Agricultural Subsidies on Migration and Agricultural Employment," Working papers DTE 474, CIDE, División de Economía.
  • Handle: RePEc:emc:wpaper:dte474
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    File URL: http://cide.edu/repec/economia/pdf/DTE/DTE474.pdf
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    References listed on IDEAS

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    1. Susan M. Richter & J. Edward Taylor & Antonio Yúnez-Naude, 2007. "Impacts of Policy Reforms on Labor Migration from Rural Mexico to the United States," NBER Chapters, in: Mexican Immigration to the United States, pages 269-288, National Bureau of Economic Research, Inc.
    2. Larry A. Sjaastad, 1962. "The Costs and Returns of Human Migration," NBER Chapters, in: Investment in Human Beings, pages 80-93, National Bureau of Economic Research, Inc.
    3. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
    4. Sadoulet, Elisabeth & Janvry, Alain de & Davis, Benjamin, 2001. "Cash Transfer Programs with Income Multipliers: PROCAMPO in Mexico," World Development, Elsevier, vol. 29(6), pages 1043-1056, June.
    5. 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;Population Association of America (PAA), vol. 42(4), pages 769-790, November.
    6. David Lindstrom, 1996. "Economic opportunity in mexico and return migration from the United States," Demography, Springer;Population Association of America (PAA), vol. 33(3), pages 357-374, August.
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    Cited by:

    1. John Scott-Andretta, 2010. "The Incidence of Agricultural Subsidies in Mexico," Working papers DTE 473, CIDE, División de Economía.
    2. Basurto Hernandez, Saul & Maddison, David & Banerjee, Anindya, 2018. "The effect of PROCAMPO on farms’ technical efficiency: A Stochastic Frontier Analysis," 2018 Annual Meeting, August 5-7, Washington, D.C. 274376, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Agriculture; Subsidies; Migration; Employment;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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