The impact of Oportunidades on human capital and income distribution in Mexico: A top-down/bottom-up approach

Darío Debowicz, Jennifer Golan

Research output: Contribution to journalArticlepeer-review

Abstract

To analyze the effects of the Mexican Oportunidades conditional cash transfer program on school attendance and household income distribution, this paper links a microeconometric simulation model and a general equilibrium model in a bidirectional way, so to explicitly take spillover effects of the program into account. Our results suggest that partial equilibrium analysis alone underestimates the distributional effects of the program. Extending the coverage of the program to the poor increases school attendance, reduces child labor supply, and increases the equilibrium wages of children who remain at work. With a relatively low fiscal cost, Mexican social policy could further reduce income inequality and poverty. © 2013 Society for Policy Modeling.
Original languageEnglish
Pages (from-to)24-42
Number of pages18
JournalJournal of Policy Modeling
Volume36
Issue number1
DOIs
Publication statusPublished - Jan 2014

Keywords

  • Computable general equilibrium (CGE)
  • Income inequality
  • Microsimulation
  • Oportunidades
  • Poverty

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