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The Impacts of Cash and In-Kind Transfers On Consumption and Labor Supply : Experimental Evidence From Rural Mexico / Skoufias, Emmanuel
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Skoufias, Emmanuel
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Agricultural activities.
- Corn.
- Food and Beverage Industry.
- Food consumption.
- Food stamps.
- Food transfers.
- Foods.
- Fruits.
- Industry.
- Poverty Lines.
- Poverty Reduction.
- Rice.
- Rural Development.
- Rural Poverty Reduction.
- Vegetables.
- Wheat.
- Local Subjects:
- Agricultural activities.
- Corn.
- Food and Beverage Industry.
- Food consumption.
- Food stamps.
- Food transfers.
- Foods.
- Fruits.
- Industry.
- Poverty Lines.
- Poverty Reduction.
- Rice.
- Rural Development.
- Rural Poverty Reduction.
- Vegetables.
- Wheat.
- Physical Description:
- 1 online resource (51 pages)
- Other Title:
- Impacts Of Cash And In-Kind Transfers On Consumption And Labor Supply
- Place of Publication:
- Washington, D.C., The World Bank, 2008
- System Details:
- data file
- Summary:
- The authors use the unique experimental design of the Food Support Program (Programa Apoyo Alimentario) to analyze in-kind and cash transfers in the poor rural areas of southern states of Mexico. They compare the impacts of monthly in-kind and cash transfers of equivalent value (mean share 11.5 percent of pre-program consumption) on household welfare as measured by food and total consumption, adult labor supply, and poverty. The results show that approximately two years later the transfer has a large and positive impact on total and food consumption. There are no differences in the size of the effect of transfer in cash versus transfers in-kind on consumption. The transfer, irrespective of type, does not affect overall participation in labor market activities but induces beneficiary households to switch their labor allocation from agricultural to nonagricultural activities. The analysis finds that the program leads to a significant reduction in poverty. Overall, the findings suggest that the Food Support Program intervention is able to relax the binding liquidity constraints faced by poor agricultural households, and thus increases both equity and efficiency.
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