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An Impact Evaluation of Agricultural Subsidies on Human Capital Development and Poverty Reduction: Evidence from Rural Mexico

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  • Davis, Benjamin
  • Handa, Sudhanshu
  • Ruiz-Arranz, Marta
  • Stampini, Marco
  • Winters, Paul

Abstract

This working papers offers an impact evaluation of two innovative programs cash transfer schemes from the Mexican Government: PROGRESA, which is a national anti-poverty scheme directed at chronic rural poverty, and PROCAMPO, a scheme designed to compensate farmers for the negative price effects of NAFTA. The analysis of data collected for an evaluation of PROGRESA suggests that the overall level of food consumption and health check-ups is lower among PROGRESA households that also participate in PROCAMPO. The overall conclusions are that program conditionality does influence longer-term (human capital) and medium term (productive) investment decisions, the receipt of multiple forms of treatment by beneficiaries can affect the overall impact of each individual program, and conditional transfers may have muted effects among agricultural households in the face of market imperfections.

Suggested Citation

  • Davis, Benjamin & Handa, Sudhanshu & Ruiz-Arranz, Marta & Stampini, Marco & Winters, Paul, 2005. "An Impact Evaluation of Agricultural Subsidies on Human Capital Development and Poverty Reduction: Evidence from Rural Mexico," IDB Publications (Working Papers) 3004, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:3004
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    References listed on IDEAS

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    1. Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
    2. Davis, Benjamin & Sadoulet, Elisabeth & de Janvry, Alain, 2001. "Cash transfer programs with income multipliers," FCND briefs 99, International Food Policy Research Institute (IFPRI).
    3. 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.
    4. J. Taylor & Irma Adelman, 2003. "Agricultural Household Models: Genesis, Evolution, and Extensions," Review of Economics of the Household, Springer, vol. 1(1), pages 33-58, January.
    5. Louise Cord & Quentin Wodon, 2001. "Do Agricultural Programs in Mexico Alleviate Poverty? Evidence from the Ejido Sector," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 38(114), pages 239-256.
    6. Skoufias, Emmanuel & Davis, Benjamin & de la Vega, Sergio, 2001. "Targeting the Poor in Mexico: An Evaluation of the Selection of Households into PROGRESA," World Development, Elsevier, vol. 29(10), pages 1769-1784, October.
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    Cited by:

    1. Fitz, Dylan, 2013. "Development Chutes and Ladders: A Joint Impact Evaluation of Asset and Cash Transfers in Brazil," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150254, Agricultural and Applied Economics Association.
    2. Ryan Nehring, 2012. "Linking Social Protection and Agricultural Production: The Case of Mexico," Policy Research Brief 21, International Policy Centre for Inclusive Growth.

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    More about this item

    Keywords

    WP-03/05;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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