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Do Cash Transfers to Farmers Reduce Migration? Procampo in Mexico

  • Gabriel Gonzalez-Konig

    (Department of Economics and Finance, Universidad de Guanajuato)

  • Quentin Wodon


This paper provides a theoretical model to suggest that if cash transfers for farmers have or are perceived to have conditionalities in terms of location (whereby at least some household members must remain at the place of origin to benefit from the transfers), their impact on temporary and permanent migration is uncertain a priori. To test empirically what the impact of the transfers could be, we use data on Procampo, a large transfer program for rural farmers in Mexico implemented since 1994. We find that the impact of Procampo on both permanent and temporary migration has been negative.

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Paper provided by Universidad de Guanajuato, Department of Economics and Finance in its series Department of Economics and Finance Working Papers with number EC200501.

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Length: 18 pages
Date of creation: Jun 2005
Date of revision: Aug 2005
Handle: RePEc:gua:wpaper:ec200501
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  1. Levy, Santiago & Wijnbergen, Sweder van, 1994. "Labor markets, migration and welfare Agriculture in the North-American Free Trade Agreement," Journal of Development Economics, Elsevier, vol. 43(2), pages 263-278, April.
  2. Ravallion, Martin & Wodon, Quentin, 1999. "Does child labor displace schooling? - evidence on behavioral responses to an enrollment subsidy," Policy Research Working Paper Series 2116, The World Bank.
  3. Louise Cord & Quentin Wodon, 2001. "Do Agricultural Programs in Mexico Alleviate Poverty? Evidence from the Ejido Sector," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 38(114), pages 239-256.
  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. Levy, Santiago & van Wijnbergen, Sweder, 1995. "Transition Problems in Economic Reform: Agriculture in the North American Free Trade Agreement," American Economic Review, American Economic Association, vol. 85(4), pages 738-54, September.
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