Cover IMF Working Papers
Targeting Social Transfers to the Poor in Mexico
Author: Mr. David Coady and Susan Parker
Series:
IMF Working Papers
Volume/Issue:
Volume 2009: Issue 060
Language:
English
Publication Date:
01 Mar 2009
DOI:
https://doi.org/10.5089/9781451872071.001
ISBN:
9781451872071
ISSN:
1018-5941
Pages:
33
Keywords:
WP; participation rate; transfer share; income distribution; program budget; random sample; share of transfer; Targeting; self selection; administrative selection; Mexico; Oportunidades; social welfare; coverage; leakage; population share; means testing; Personal income; Budget planning and preparation; Household consumption
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Mexico’s main social support program, Oportunidades, combines two methods to target cash to poor households: an initial self-selection by households who acquire knowledge about the program and apply for benefits, followed by an administrative determination of eligibility based on a means test. Self-selection improves targeting by excluding high-income households, while administrative targeting does so mainly by excluding middle-income households. The two methods are complementary: expanding program knowledge across households substantially increases applications from non-poor households, thus reinforcing the importance of administrative targeting. The paper shows that targeting can be further improved through redesigning the means test and differentiating transfers according to demographic characteristics.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund