DO CASH TRANSFERS IMPACT MIGRATION? A STUDY OF THE EFFECTS OF PROCAMPO AND PROGRESA ON SHORT-TERM MIGRATION IN MEXICO

This study evaluates the impact of two cash transfer programs implemented by the Mexican government, Procampo and Progresa, on short-term migration (migration for a period of less than 12 months). Using the 2002 Mexican Family Life Survey, a logit model is used to estimate the effect of these cash transfer programs on household migration decisions. The empirical results suggest that Procampo income is associated with higher migration, while there is no relationship between Progresa and migration decisions of household. After accounting for community fixed effects, the coefficient capturing the relationship between Procampo and migration loses significance. These results suggest that Procampo and/or Progresa cash transfers do not affect the short-term migration rate of Mexican households which is consistent with findings in the literature