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Do Conditional Cash Transfers Reduce Household Vulnerability in Rural Mexico?

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  • Naoko Uchiyama

    (World Language and Society Education Centre, Tokyo University of Foreign Studies (TUFS), Japan)

Abstract

This study empirically examines the vulnerability of rural households in Mexico and the impact of the conditional cash transfer (CCT) programme on them. Using the two most recent Mexican rural household panel datasets (2003 and 2007), I adopt Townsend’s (1994) model and Kurosaki’s (2006) modified version with instrumental variable methods. The empirical results confirmed better risk-sharing functions in basic needs (food) and the effects of CCT, together with other factors such as larger family size, 11 landholdings, and self-consumption, on reducing household vulnerability; however, the effects of remittances were somewhat opposite.

Suggested Citation

  • Naoko Uchiyama, 2014. "Do Conditional Cash Transfers Reduce Household Vulnerability in Rural Mexico?," Discussion Paper Series DP2014-40, Research Institute for Economics & Business Administration, Kobe University, revised Jan 2018.
    • Handle: RePEc:kob:dpaper:dp2014-40
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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2014-40.pdf
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    References listed on IDEAS

    as
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    7. Skoufias, Emmanuel, 2007. "Poverty alleviation and consumption insurance: Evidence from PROGRESA in Mexico," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(4), pages 630-649, August.
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    More about this item

    Keywords

    Consumption smoothing; Household vulnerability; PROGRESA-Oportunidades;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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