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Human capital investment and long-term poverty reduction in rural Mexico

Author

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  • Paul Winters

    (AU - American University Washington D.C.)

  • Vera Chiodi

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

By focusing on human capital investment, the Mexican Oportunidades program will influence the economic choices of the rural poor. To understand how beneficiaries may alter their behavior as a result of this intervention, this paper uses administrative data to analyze the economic activities of the Mexican rural poor. Results indicate that investments in education are likely to shift recipients from agricultural wage employment toward non-farm wage employment. The magnitude of this impact will be influenced by household assets and by the location of the household. The results suggest the need for policies that complement the government's focus on human capital investment.

Suggested Citation

  • Paul Winters & Vera Chiodi, 2008. "Human capital investment and long-term poverty reduction in rural Mexico," PSE Working Papers halshs-00586227, HAL.
    • Handle: RePEc:hal:psewpa:halshs-00586227
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00586227
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    References listed on IDEAS

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    1. J. Edward Taylor & Antonio Yunez-Naude, 2000. "The Returns from Schooling in a Diversified Rural Economy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 287-297.
    2. Winters, Paul & Davis, Benjamin & Corral, Leonardo, 2002. "Assets, activities and income generation in rural Mexico: factoring in social and public capital," Agricultural Economics, Blackwell, vol. 27(2), pages 139-156, August.
    3. Carola Álvarez & Florencia Devoto & Paul Winters, 2006. "Why do the poor leave the safety net in Mexico? A study of the effects of conditionality on dropouts," Working Papers 2006-10, American University, Department of Economics.
    4. Marcel Fafchamps & Forhad Shilpi, 2003. "The spatial division of labour in Nepal," Journal of Development Studies, Taylor & Francis Journals, vol. 39(6), pages 23-66.
    5. Álvarez, Carola & Devoto, Florencia & Winters, Paul, 2008. "Why do Beneficiaries Leave the Safety Net in Mexico? A Study of the Effects of Conditionality on Dropouts," World Development, Elsevier, vol. 36(4), pages 641-658, April.
    6. World Bank, 2004. "Poverty in Mexico : An Assessment of Conditions, Trends, and Government Strategy," World Bank Publications - Reports 14586, The World Bank Group.
    7. Benjamin Davis & Paul Winters & Gero Carletto & Katia Covarrubias & Esteban Quinones & Alberto Zezza & Kostas Stamoulis & Genny Bonomi & Stefania DiGiuseppe, 2007. "Rural Income Generating Activities; A Cross Country Comparison," Working Papers 07-16, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    8. Winters, Paul & Davis, Benjamin & Carletto, Gero & Covarrubias, Katia & Quiñones, Esteban J. & Zezza, Alberto & Azzarri, Carlo & Stamoulis, Kostas, 2009. "Assets, Activities and Rural Income Generation: Evidence from a Multicountry Analysis," World Development, Elsevier, vol. 37(9), pages 1435-1452, September.
    9. Barrett, Christopher B. & Reardon, Thomas, 2000. "Asset, Activity, And Income Diversification Among African Agriculturalists: Some Practical Issues," Working Papers 14734, Cornell University, Department of Applied Economics and Management.
    10. Tom Hertz, 2009. "The effect of nonfarm income on investment in Bulgarian family farming," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 161-176, March.
    11. Davis, Benjamin & Winters, Paul & Carletto, Gero & Covarrubias, Katia & Quiñones, Esteban J. & Zezza, Alberto & Stamoulis, Kostas & Azzarri, Carlo & DiGiuseppe, Stefania, 2010. "A Cross-Country Comparison of Rural Income Generating Activities," World Development, Elsevier, vol. 38(1), pages 48-63, January.
    12. World Bank, 2005. "Income Generation and Social Protection for the Poor," World Bank Publications - Reports 8815, The World Bank Group.
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    2. Kazeem B. Ajide & Olorunfemi Y. Alimi & Simplice A. Asongu, 2024. "Intelligence and its Effects on Environmental Decline: A Worldwide Analysis," Working Papers 24/017, European Xtramile Centre of African Studies (EXCAS).
    3. Solomon Zena Walelign & Mariève Pouliot & Helle Overgaard Larsen & Carsten Smith-Hall, 2015. "A novel approach to dynamic livelihood clustering: Empirical evidence from Nepal," IFRO Working Paper 2015/09, University of Copenhagen, Department of Food and Resource Economics.
    4. Aguilera, Pablo & Bayon, Manoj Chandra, 2020. "The transformative effect of investments in territorial capital on poverty reduction: evidence from rural México," TEC Empresarial, School of Business, Costa Rica Institute of Technology (ITCR), vol. 14(3), pages 72-91.
    5. Youmanli OUOBA, 2018. "Industrial mining land use and poverty in regions of Burkina Faso," Agricultural Economics, International Association of Agricultural Economists, vol. 49(4), pages 511-520, July.

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