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

  • Angelucci, Manuela

    ()

    (University of Michigan)

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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File URL: http://ftp.iza.org/dp1187.pdf
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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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  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. 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.
  3. Schultz, T. Paul, 2001. "School subsidies for the poor," FCND briefs 102, International Food Policy Research Institute (IFPRI).
  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. 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.
  6. 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).
  7. 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).
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