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Agricultural Workers, Credit Rationing and Family Networks in Rural Mexico

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  • Emmanuelle Bouquet
  • Sol�ne Morvant-Roux
  • Gerardo Rodriguez-Solis

Abstract

We use mixed methods and first-hand household data in Mexico to investigate credit practices by households engaged in agricultural wage employment. Quantitative analysis shows evidence of rationing in the formal sector but also suggests the existence of mitigating mechanisms. Qualitative analysis provides additional insights. First, income patterns associated with agricultural wage generate income smoothing needs that are sometimes better met by the informal sector. Second, family networks can perform key functions as gateways to the formal sector, through specific informal arrangements that inject flexibility into formal rules and procedures.

Suggested Citation

  • Emmanuelle Bouquet & Sol�ne Morvant-Roux & Gerardo Rodriguez-Solis, 2015. "Agricultural Workers, Credit Rationing and Family Networks in Rural Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 51(5), pages 523-537, May.
    • Handle: RePEc:taf:jdevst:v:51:y:2015:i:5:p:523-537
    DOI: 10.1080/00220388.2014.983910
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    References listed on IDEAS

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    1. Xavier Faz & Paul Breloff, 2012. "A Structured Approach to Understanding the Financial Service Needs of the Poor in Mexico," World Bank Publications - Reports 9441, The World Bank Group.
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    Cited by:

    1. Allison Benson & Jean-Paul Faguet, 2023. "Increasing Access to Formal Agricultural Credit: The Role of Rural Producer Organisations," Journal of Development Studies, Taylor & Francis Journals, vol. 59(1), pages 21-38, January.
    2. Thereza Balliester Reis, 2022. "Socio‐economic determinants of financial inclusion: An evaluation with a microdata multidimensional index," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(3), pages 587-611, April.
    3. Carolina Laureti, 2017. "Why do Poor People Co-hold Debt and Liquid Savings?," Working Papers CEB 17-007, ULB -- Universite Libre de Bruxelles.

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