Changing the ability of the poor to generate income : Mexico's Conditional Cash Transfer program Oportunidades

Thesis (M.C.P.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2010.

Bibliographic Details
Main Author: Flores Romero, Karla Renata
Other Authors: Alice Amsden.
Format: Thesis
Language:eng
Published: Massachusetts Institute of Technology 2011
Subjects:
Online Access:http://hdl.handle.net/1721.1/62067
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author Flores Romero, Karla Renata
author2 Alice Amsden.
author_facet Alice Amsden.
Flores Romero, Karla Renata
author_sort Flores Romero, Karla Renata
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description Thesis (M.C.P.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2010.
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spelling mit-1721.1/620672019-04-11T07:00:58Z Changing the ability of the poor to generate income : Mexico's Conditional Cash Transfer program Oportunidades Mexico's Conditional Cash Transfer program, Oportunidades Flores Romero, Karla Renata Alice Amsden. Massachusetts Institute of Technology. Dept. of Urban Studies and Planning. Massachusetts Institute of Technology. Dept. of Urban Studies and Planning. Urban Studies and Planning. Thesis (M.C.P.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2010. Cataloged from PDF version of thesis. Includes bibliographical references (p. 92-97). Conditional Cash Transfer (CCT) programs have been adopted in many developing countries, particularly in Latin America, as the core strategy for poverty reduction. These programs provide immediate economic support to poor populations conditional on specific actions such as sending children to school or receiving healthcare. The main rationale behind this approach is that, once human capital accumulates, the poor will take full advantage of labor market opportunities and overcome poverty. Some scholars argue that, despite the remarkable positive impacts of these programs on human capital formation, the low growth rate of employment prevailing in most Latin American countries pose difficult challenges for achieving their ultimate goal of poverty reduction. Nevertheless, the generation of employment opportunities could be a direct consequence of these programs. I analyze this circumstance by evaluating the likelihood of households to invest cash transfers in business creation. Using longitudinal data from the Mexican Family Life Survey (MxFLS), I assess the impact of the Mexican CCT program, Oportunidades, on the creation of businesses. For this purpose, I implement the difference-in-difference (DD) method and, to account for the non-experimental nature of the study, I use Rosenbaum and Rubin's propensity score matching method. Finally, I identify some of the characteristics of beneficiary households that are more likely to invest using a difference-in-difference-in-difference (DDD) estimator. The results indicate that beneficiary households in rural and urban areas are more likely to create businesses than non-beneficiary households. This may be a relevant finding for the design of this type of policy instruments, especially if the promotion of income-generating activities can be achieved as an alternate goal. Cash-transfer investments, coupled with additional mechanisms of support such as entrepreneurial development programs, could contribute not only to short-term poverty alleviation, but also to a long-term, sustainable solution to poverty. by Karla Renata Flores Romero. M.C.P. 2011-04-04T16:24:28Z 2011-04-04T16:24:28Z 2010 2010 Thesis http://hdl.handle.net/1721.1/62067 708399333 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 97 p. application/pdf n-mx--- Massachusetts Institute of Technology
spellingShingle Urban Studies and Planning.
Flores Romero, Karla Renata
Changing the ability of the poor to generate income : Mexico's Conditional Cash Transfer program Oportunidades
title Changing the ability of the poor to generate income : Mexico's Conditional Cash Transfer program Oportunidades
title_full Changing the ability of the poor to generate income : Mexico's Conditional Cash Transfer program Oportunidades
title_fullStr Changing the ability of the poor to generate income : Mexico's Conditional Cash Transfer program Oportunidades
title_full_unstemmed Changing the ability of the poor to generate income : Mexico's Conditional Cash Transfer program Oportunidades
title_short Changing the ability of the poor to generate income : Mexico's Conditional Cash Transfer program Oportunidades
title_sort changing the ability of the poor to generate income mexico s conditional cash transfer program oportunidades
topic Urban Studies and Planning.
url http://hdl.handle.net/1721.1/62067
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