IDEAS home Printed from https://ideas.repec.org/p/fpr/fcndbr/99.html
   My bibliography  Save this paper

Cash transfer programs with income multipliers

Author

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

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.

Suggested Citation

  • Sadoulet, Elisabeth & Davis, Benjamin & de Janvry, Alain, 2001. "Cash transfer programs with income multipliers," FCND briefs 99, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:fcndbr:99
    as

    Download full text from publisher

    File URL: http://www.ifpri.org/sites/default/files/publications/fcnbr99.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hoddinott, John & Haddad, Lawrence James & Besley, Tim & Adato, Michelle, 2001. "Participation and poverty reduction," FCND discussion papers 98, International Food Policy Research Institute (IFPRI).
    2. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dennis Egger & Johannes Haushofer & Edward Miguel & Paul Niehaus & Michael Walker, 2022. "General Equilibrium Effects of Cash Transfers: Experimental Evidence From Kenya," Econometrica, Econometric Society, vol. 90(6), pages 2603-2643, November.
    2. Furio C. Rosati, 2022. "Can cash transfers reduce child labor?," IZA World of Labor, Institute of Labor Economics (IZA), pages 293-293, February.
    3. Kishore, Avinash & Joshi, Pramod K. & Pandey, Divya, 2015. "Droughts, Distress and a Conditional Cash Transfer Program to Mitigate the Impact of Droughtin Bihar, India," 2015 Conference, August 9-14, 2015, Milan, Italy 212009, International Association of Agricultural Economists.
    4. Latruffe, Laure & Davidova, Sophia & Douarin, Elodie & Gorton, Matthew, 2008. "Can the CAP payments facilitate the growth of individual farms in the New Member States post-EU accession?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43611, European Association of Agricultural Economists.
    5. Jose M. Yorobe Jr. & Jauhar Ali & Valerien O. Pede & Roderick M. Rejesus & Orlee. P. Velarde & Huaiyu Wang, 2016. "Yield and income effects of rice varieties with tolerance of multiple abiotic stresses: the case of green super rice (GSR) and flooding in the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 47(3), pages 261-271, May.
    6. Latruffe, Laure & Davidova, Sophia & Douarin, Elodie & Gorton, Matthew, 2008. "Can the CAP payments facilitate the growth of individual farms in the NMS post-EU accession?," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36861, Agricultural Economics Society.
    7. David, Magnaña-Lemus, 2013. "Determinants of Household Food Insecurity in Mexico," 2013: Employment, Immigration and Trade, December 15-17, 2013, Clearwater Beach, Florida 182502, International Agricultural Trade Research Consortium.
    8. Schmook, Birgit & Vance, Colin, 2009. "Agricultural Policy, Market Barriers, and Deforestation: The Case of Mexico's Southern Yucatn," World Development, Elsevier, vol. 37(5), pages 1015-1025, May.
    9. Zavala-Pineda, María Jesica & Leos-Rodríguez, Juan Antonio & Salas-González, José María & Valdez-Cepeda, Ricardo David & Gómez-Oliver, Luis, 2015. "Las transferencias agrarias en México y su efecto en el sector agropecuario," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 15(02).
    10. Dammert, Ana C. & de Hoop, Jacobus & Mvukiyehe, Eric & Rosati, Furio C., 2018. "Effects of public policy on child labor: Current knowledge, gaps, and implications for program design," World Development, Elsevier, vol. 110(C), pages 104-123.
    11. Briones, Roehlano M. & Tolin, Lovely Ann C., 2015. "Options for Supporting Rice Farmers Under a Post-QR Regime: Review and Assessment," Discussion Papers DP 2015-46, Philippine Institute for Development Studies.
    12. Lahiri, Bidisha & Daramola, Richard, 2023. "Effects of credit and labor constraints on microenterprises and the unintended impact of changes in household endowments: Use of threshold estimation to detect heterogeneity," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 21-38.
    13. Yi, Fujin & Sun, Dingqiang & Zhou, Yingheng, 2015. "Grain subsidy, liquidity constraints and food security—Impact of the grain subsidy program on the grain-sown areas in China," Food Policy, Elsevier, vol. 50(C), pages 114-124.
    14. Chitiga, Margaret & Tiberti, Luca & Maisonnave, Helene & Hoareau, Stephane & Robichaud, Véronique & Mabugu, Ramos & Ngandu, Stewart, 2012. "Analysis of the Economic Impacts of the South African Child Support Grant Via A Microsimulation-CGE Model," Conference papers 332237, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Valsecchi, Michele, 2014. "Land property rights and international migration: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 110(C), pages 276-290.
    16. Laure Latruffe & Sophia Davidova & Elodie Douarin & Matthew Gorton, 2010. "Farm Expansion in Lithuania after Accession to the EU: The Role of CAP Payments in Alleviating Potential Credit Constraints," Europe-Asia Studies, Taylor & Francis Journals, vol. 62(2), pages 351-365.
    17. Gupta, Anubhab & Taylor, J. Edward & Davis, Benjamin & Luca, Pellerano & Ousmane, Niang, 2016. "Long-term Impacts of Poverty Programs: A Local-economy Cost-benefit Analysis of Lesotho's Child Grants Programme," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235474, Agricultural and Applied Economics Association.
    18. Dithmer, Jan & Abdulai, Awudu, 2017. "Does trade openness contribute to food security? A dynamic panel analysis," Food Policy, Elsevier, vol. 69(C), pages 218-230.
    19. Lisa Pfeiffer & Alejandro López‐Feldman & J. Edward Taylor, 2009. "Is off‐farm income reforming the farm? Evidence from Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 125-138, March.
    20. Yi, Fujin & Lu, Wuyi & Zhou, Yingheng, 2015. "Cash Transfers and Multiplier Effect: Lessons from the Grain Subsidy Program in China," 2015 Conference, August 9-14, 2015, Milan, Italy 211877, International Association of Agricultural Economists.
    21. Yörük, Erdem & Öker, İbrahim & Şarlak, Lara, 2019. "Indigenous unrest and the contentious politics of social assistance in Mexico," World Development, Elsevier, vol. 123(C), pages 1-1.
    22. Dobler-Morales, Carlos & Lorenzen, Matthew & Orozco-Ramírez, Quetzalcóatl & Bocco, Gerardo, 2022. "Beyond a generalized deagrarianization: Livelihood heterogeneity and its determinants in the Mixteca Alta, Mexico," World Development, Elsevier, vol. 160(C).
    23. Briones, Roehlano M. & Tolin, Lovely Ann C., 2015. "Options for Supporting Rice Farmers Under a Post-QR Regime: Review and Assessment," Research Paper Series DP 2015-46, Philippine Institute for Development Studies.
    24. Camacho, Luis A. & Kreibaum, Merle, 2017. "Cash transfers, food security and resilience in fragile contexts: general evidence and the German experience," IDOS Discussion Papers 9/2017, German Institute of Development and Sustainability (IDOS).
    25. McArthur, Travis, 2016. "Direct Measurement of Efficiency Gains from Land Titling: PROCEDE's Effect upon the Productivity of Mexican Agriculture," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236133, Agricultural and Applied Economics Association.

    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. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers WR-587, RAND Corporation.
    2. Vimefall, Elin, 2015. "Income diversification and working children," Working Papers 2015:8, Örebro University, School of Business.
    3. Ghazala Mansuri, 2004. "Community-Based and -Driven Development: A Critical Review," The World Bank Research Observer, World Bank, vol. 19(1), pages 1-39.
    4. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers 587, RAND Corporation.
    5. David Coady & Emmanuel Skoufias, 2004. "On the Targeting and Redistributive Efficiencies of Alternative Transfer Instruments," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(1), pages 11-27, March.
    6. Adato, Michelle & Haddad, Lawrence James, 2001. "Targeting poverty through community-based public works programs," FCND discussion papers 121, International Food Policy Research Institute (IFPRI).
    7. Antinori, Camille M. & Rausser, Gordon C., 2003. "Does Community Involvement Matter? How Collective Choice Affects Forests in Mexico," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt83j385n0, Department of Agricultural & Resource Economics, UC Berkeley.
    8. Kafle, Kashi & Jolliffe, Dean & Winter-Nelson, Alex, 2018. "Do different types of assets have differential effects on child education? Evidence from Tanzania," World Development, Elsevier, vol. 109(C), pages 14-28.
    9. Beck, Erin, 2016. "Repopulating Development: An Agent-Based Approach to Studying Development Interventions," World Development, Elsevier, vol. 80(C), pages 19-32.
    10. Jinnat Ara & Dipanwita Sarkar & Jayanta Sarkar, 2021. "Like mother like daughter? Occupational mobility among children under asset transfer program in Bangladesh," QuBE Working Papers 061, QUT Business School.
    11. Hazal Colak Oz & Çiçek Güven & Gonzalo Nápoles, 2023. "School dropout prediction and feature importance exploration in Malawi using household panel data: machine learning approach," Journal of Computational Social Science, Springer, vol. 6(1), pages 245-287, April.
    12. Platteau, Jean-Philippe & Gaspart, Frederic, 2003. "The Risk of Resource Misappropriation in Community-Driven Development," World Development, Elsevier, vol. 31(10), pages 1687-1703, October.
    13. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 57, pages 3607-3709, Elsevier.
    14. Asadul Islam & Chongwoo Choe, 2013. "Child Labor And Schooling Responses To Access To Microcredit In Rural Bangladesh," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 46-61, January.
    15. Sefa K. Awaworyi, 2014. "The Impact of Microfinance Interventions: A Meta-analysis," Monash Economics Working Papers 03-14, Monash University, Department of Economics.
    16. Antinori, Camille M. & Rausser, Gordon C., 2010. "The Mexican Common Property Forestry Sector," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt8qh479p8, Department of Agricultural & Resource Economics, UC Berkeley.
    17. Emerson, Patrick M. & McGough, Bruce, 2010. "Are Microloans Bad for Growth?," IZA Discussion Papers 5249, Institute of Labor Economics (IZA).
    18. Jean-Marie Baland & Timothée Demont & Rohini Somanathan, 2020. "Child Labor and Schooling Decisions among Self-Help Group Members in Rural India," Economic Development and Cultural Change, University of Chicago Press, vol. 69(1), pages 73-105.
    19. Alessandro Tarozzi & Jaikishan Desai & Kristin Johnson, 2013. "On the impact of microcredit: Evidence from a randomized intervention in rural Ethiopia," Economics Working Papers 1407, Department of Economics and Business, Universitat Pompeu Fabra.
    20. Coady, David P., 2004. "Designing and evaluating social safety nets," FCND discussion papers 172, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    Subsidies Mexico ; income ;

    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:fpr:fcndbr:99. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    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.