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

✍ Scribed by Paul Conal Winters; Vera Chiodi

Publisher: John Wiley and Sons
Year: 2010
Tongue: English
Weight: 286 KB
Volume: 23
Category: Article
ISSN: 0954-1748
DOI: 10.1002/jid.1664

No coin nor oath required. For personal study only.

✦ Synopsis

By focussing on human capital investment, the Mexican Oportunidades program will influence the economic choices of the rural poor. To understand how beneficiaries may alter their behaviour as a result of this intervention, this paper uses administrative data to analyse the economic activities of the rural poor. Results indicate that investments in education are likely to shift recipients from agricultural wage employment towards 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.

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