Targeting Social Transfers to the Poor in Mexico

33 Pages Posted: 23 Mar 2009

See all articles by David P. Coady

David P. Coady

International Monetary Fund (IMF)

Susan Parker

International Monetary Fund (IMF)

Date Written: March 2009

Abstract

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.

Keywords: Working Papers

Suggested Citation

Coady, David P. and Parker, Susan, Targeting Social Transfers to the Poor in Mexico (March 2009). IMF Working Paper No. 09/60, Available at SSRN: https://ssrn.com/abstract=1366188

David P. Coady (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Susan Parker

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

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