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Do Conditional Cash Transfers Reduce Household Vulnerability in Rural Mexico?

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  • Naoko Uchiyama

    (World Language and Society Education Centre, Tokyo University of Foreign Studies (TUFS), Japan)

Abstract

This study empirically examines the vulnerability of rural households in Mexico and the impact of the conditional cash transfer (CCT) programme on them. Using the two most recent Mexican rural household panel datasets (2003 and 2007), I adopt Townsend’s (1994) model and Kurosaki’s (2006) modified version with instrumental variable methods. The empirical results confirmed better risk-sharing functions in basic needs (food) and the effects of CCT, together with other factors such as larger family size, 11 landholdings, and self-consumption, on reducing household vulnerability; however, the effects of remittances were somewhat opposite.

Suggested Citation

  • Naoko Uchiyama, 2014. "Do Conditional Cash Transfers Reduce Household Vulnerability in Rural Mexico?," Discussion Paper Series DP2014-40, Research Institute for Economics & Business Administration, Kobe University, revised Jan 2018.
  • Handle: RePEc:kob:dpaper:dp2014-40
    as

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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2014-40.pdf
    File Function: Revised version, 2018
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    References listed on IDEAS

    as
    1. Attanasio, Orazio & Di Maro, Vincenzo & Lechene, Valérie & Phillips, David, 2013. "Welfare consequences of food prices increases: Evidence from rural Mexico," Journal of Development Economics, Elsevier, vol. 104(C), pages 136-151.
    2. Amin, Sajeda & Rai, Ashok S. & Topa, Giorgio, 2003. "Does microcredit reach the poor and vulnerable? Evidence from northern Bangladesh," Journal of Development Economics, Elsevier, vol. 70(1), pages 59-82, February.
    3. Hanan G. Jacoby & Emmanuel Skoufias, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Oxford University Press, vol. 64(3), pages 311-335.
    4. Manuela Angelucci & Giacomo De Giorgi, 2009. "Indirect Effects of an Aid Program: How Do Cash Transfers Affect Ineligibles' Consumption?," American Economic Review, American Economic Association, vol. 99(1), pages 486-508, March.
    5. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications, The World Bank, number 2597, December.
    6. Skoufias, Emmanuel, 2007. "Poverty alleviation and consumption insurance: Evidence from PROGRESA in Mexico," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(4), pages 630-649, August.
    7. Grimard, Franque, 1997. "Household consumption smoothing through ethnic ties: evidence from Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 53(2), pages 391-422, August.
    8. Kochar, Anjini, 1995. "Explaining Household Vulnerability to Idiosyncratic Income Shocks," American Economic Review, American Economic Association, vol. 85(2), pages 159-164, May.
    9. Bardhan, Pranab & Udry, Christopher, 1999. "Development Microeconomics," OUP Catalogue, Oxford University Press, number 9780198773719.
    10. Angelucci, Manuela & De Giorgi, Giacomo, 2006. "Indirect Effects of an Aid Program: The Case of Progresa and Consumption," IZA Discussion Papers 1955, Institute of Labor Economics (IZA).
    11. Skoufias, Emmanuel, 2005. "PROGRESA and its impacts on the welfare of rural households in Mexico:," Research reports 139, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Consumption smoothing; Household vulnerability; PROGRESA-Oportunidades;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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