Are Conditional Cash Transfers Associated with Lower Labor Supply?: Evidence from Mexico's Oportunidades Over the Period 2000-2010

This paper analyzes the correlation between the expansion of the Mexican Conditional Cash Transfer program Oportunidades and the evolution of the labor market over the period 2000-10. We find no evidence of perverse effects. Program expansion was not associated with drops in either labor force participation or wageformality. On the contrary, the expansion of Oportunidades was strongly correlated with a transition from informal wage employment to self-employment for men (by 1.6% and 0.6% of total employment in rural and urban municipalities respectively). These findings suggest that Oportunidades is not creating dependence from social assistance.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	Mariano Bosch
Format:	Technical Notes biblioteca
Language:	English
Published:	Inter-American Development Bank
Subjects:	Labor Policy, Self Employment, Informal Labor, Conditional Cash Transfer, I38 - Government Policy • Provision and Effects of Welfare Programs, J22 - Time Allocation and Labor Supply, Labor Policy;Social Security;TN-497,
Online Access:	http://dx.doi.org/10.18235/0009093 https://publications.iadb.org/en/are-conditional-cash-transfers-associated-lower-labor-supply-evidence-mexicos-oportunidades-over
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