IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v29y2001i6p1043-1056.html
   My bibliography  Save this article

Cash Transfer Programs with Income Multipliers: PROCAMPO in Mexico

Author

Listed:
  • Sadoulet, Elisabeth
  • Janvry, Alain de
  • Davis, Benjamin

Abstract

Cash transfer programs induce multiplier effects when recipients put the money they receive to work to generate additional income. The ultimate income effects are multiples of the amounts transferred. This paper analyzes the PROCAMPO program in Mexico, which was introduced to compensate farmers for the anticipated negative effect of the North American Free Trade Agreement (NAFTA) on the price of basic crops. The transfer rules and the timing of the panel data collected allow unique control of biases in this impact analysis. We find that the multiplier among ejido sector recipients is in the range of 1.5 to 2.6. Multipliers are higher for medium and large farm households, low numbers of adults in the household, nonindigenous backgrounds, and households located in the Center and Gulf regions. High multipliers reflect marginal income opportunities that were unrealized due to liquidity constraints that the transfers eased. Opportunities came from the asset endowments that these households have, particularly irrigated land, and these opportunities were enhanced by access to technical assistance.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • 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.
    • Handle: RePEc:eee:wdevel:v:29:y:2001:i:6:p:1043-1056
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-750X(01)00018-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. De Janvry Alain & Sadoulet Elisabeth & Santos Blas, 1995. "Project Evaluation for Sustainable Rural Development: Plan Sierra in the Dominican Republic," Journal of Environmental Economics and Management, Elsevier, vol. 28(2), pages 135-154, March.
    2. Hoddinott, John & Haddad, Lawrence James & Besley, Tim & Adato, Michelle, 2001. "Participation and poverty reduction," FCND discussion papers 98, International Food Policy Research Institute (IFPRI).
    3. Ravallion, Martin, 1999. "Themystery of the vanishing benefits : Ms. Speedy Analyst's introduction to evaluation," Policy Research Working Paper Series 2153, The World Bank.
    4. Cox, Donald & Eser, Zekeriya & Jimenez, Emmanuel, 1998. "Motives for private transfers over the life cycle: An analytical framework and evidence for Peru," Journal of Development Economics, Elsevier, vol. 55(1), pages 57-80, February.
    5. Wydick, Bruce, 1999. "The Effect of Microenterprise Lending on Child Schooling in Guatemala," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 853-869, July.
    6. K. Subbarao, 1997. "Public Works as an Anti-Poverty Program: An Overview of Cross-Country Experience," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 678-683.
    7. Pitt, Mark M & Rosenzweig, Mark R & Gibbons, Donna M, 1993. "The Determinants and Consequences of the Placement of Government Programs in Indonesia," The World Bank Economic Review, World Bank, vol. 7(3), pages 319-348, September.
    8. Behrman, Jere R, 1996. "The Impact of Health and Nutrition on Education," The World Bank Research Observer, World Bank, vol. 11(1), pages 23-37, February.
    9. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Disney & Eleonora Fischera & Trudy Owens, 2010. "Has the Introduction of Microfinance Crowded-out Informal Loans in Malawi?," Discussion Papers 10/08, University of Nottingham, CREDIT.
    2. Adato, Michelle & Haddad, Lawrence James & Hoddinott, John, 2005. "Power, politics, and performance: community participation in South African public works programs," Research reports 143, International Food Policy Research Institute (IFPRI).
    3. Coady, David, 2004. "Designing and evaluating social safety nets: theory, evidence, and policy conclusions," FCND discussion papers 172, International Food Policy Research Institute (IFPRI).
    4. Cameron, Lisa A., 2002. "Did social safety net scholarships reduce drop-out rates during the Indonesian economic crisis?," Policy Research Working Paper Series 2800, The World Bank.
    5. Adato, Michelle & Haddad, Lawrence James, 2001. "Targeting poverty through community-based public works programs," FCND briefs 121, International Food Policy Research Institute (IFPRI).
    6. Satriawan, Elan, 2006. "Does supplementary food program help children during the crisis? Evidence from Indonesian Panel Data," 2006 Annual meeting, July 23-26, Long Beach, CA 21210, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
    8. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers WR-587, RAND Corporation.
    9. Indrani Chakraborty & Achin Chakraborty, 2010. "Female Work Participation and Gender Differential in Earning in West Bengal, India," Journal of Quantitative Economics, The Indian Econometric Society, vol. 8(2), pages 98-114.
    10. Jellal, Mohamed, 2009. "Family Institution and Filial Attention Contract," MPRA Paper 17713, University Library of Munich, Germany.
    11. Belot, Michèle & James, Jonathan, 2011. "Healthy school meals and educational outcomes," Journal of Health Economics, Elsevier, vol. 30(3), pages 489-504, May.
    12. Marco Caliendo & Frank M. Fossen & Alexander Kritikos & Miriam Wetter, 2015. "The Gender Gap in Entrepreneurship: Not just a Matter of Personality," CESifo Economic Studies, CESifo Group, vol. 61(1), pages 202-238.
    13. Aldieri, Luigi & Fiorillo, Damiano, 2015. "Private monetary transfers and altruism: An empirical investigation on Italian families," Economic Analysis and Policy, Elsevier, vol. 46(C), pages 1-15.
    14. Marta Favara & Catherine Porter & Tassew Woldehanna, 2019. "Smarter through social protection? Evaluating the impact of Ethiopia’s safety-net on child cognitive abilities," Oxford Development Studies, Taylor & Francis Journals, vol. 47(1), pages 79-96, January.
    15. Christofides, Louis N. & Pashardes, Panos, 2002. "Self/paid-employment, public/private sector selection, and wage differentials," Labour Economics, Elsevier, vol. 9(6), pages 737-762, December.
    16. Andaluz, Joaquín & Marcén, Miriam & Molina, José Alberto, 2007. "Income Transfers, Welfare and Family Decisions," IZA Discussion Papers 2804, Institute of Labor Economics (IZA).
    17. Jacobson, Jerry Owen & Robinson, Paul & Bluthenthal, Ricky N., 2007. "A multilevel decomposition approach to estimate the role of program location and neighborhood disadvantage in racial disparities in alcohol treatment completion," Social Science & Medicine, Elsevier, vol. 64(2), pages 462-476, January.
    18. Martti Kaila & Emily Nix & Krista Riukula, 2021. "Disparate Impacts of Job Loss by Parental Income and Implications for Intergenerational Mobility," Opportunity and Inclusive Growth Institute Working Papers 53, Federal Reserve Bank of Minneapolis.
    19. Nikolov, Plamen & Adelman, Alan, 2019. "Do private household transfers to the elderly respond to public pension benefits? Evidence from rural China," The Journal of the Economics of Ageing, Elsevier, vol. 14(C).
    20. Skoufias, Emmanuel, 1998. "Determinants of child health during the economic transition in Romania," World Development, Elsevier, vol. 26(11), pages 2045-2056, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:29:y:2001:i:6:p:1043-1056. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.