Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Abstract:We estimate the effect of 70 y Mas, an age-conditioned transfer program for individuals age 70 and older in rural Mexico, on the labor force participation of beneficiaries and of younger individuals who live with them. Using data from the 2010 Mexican Census, we exploit the age and locality population thresholds to identify the effects of the program. We find that the program reduces the labor force participation of elderly men, particularly of those who live alone and who are relatively poor, but has a much weaker effect on that of elderly women. The program has no statistically significant effect on the labor force participation of either prime-age men or women who live with potential beneficiaries, and it has a negative and significant effect on the labor force participation of boys age 12 to 17, particularly those in the lowest wealth quintiles, but not on that of same-age girls. These results suggest that the program affects mostly the labor supply of the intended beneficiaries, and that of marginal workers, like adolescent boys. Keywords: Pensions, Social Protection, Labor Force Participation, Mexico. JEL Classification: D04, J26, O12.Resumen: Estimamos el efecto de 70 y Más, un programa de transferencias condicionado a la edad para individuos con 70 y más años en el México rural, sobre la participación laboral de los beneficiarios y de los individuos más jóvenes que viven con ellos. Usando datos del censo mexicano de 2010, explotamos los umbrales de la edad y de la población de la localidad para identificar los efectos del programa. Encontramos que el programa reduce la participación laboral de los hombres adultos mayores, particularmente la de aquellos que viven solos y que son relativamente pobres, pero tiene un efecto mucho más débil sobre la de las mujeres adultas mayores. El programa no tiene un efecto estadísticamente significativo sobre la participación laboral de los hombres o mujeres en edad productiva que viven con los beneficiarios potenciales, y tiene un efecto negativo y significativo sobre la oferta laboral de los niños entre 12 y 17 años de edad, particularmente aquellos en los quintiles de riqueza más bajos, pero no en la de las niñas de la misma edad. Estos resultados sugieren que el programa afecta en su mayor parte la oferta laboral de los beneficiarios previstos y la de trabajadores marginales, como los varones adolescentes.
This paper estimates the crowding out of private transfers caused by 70 y Más -a public assistance program for rural elderly adults in Mexico, for whom family support is an important source of income. Using data from the National Household Income and Expenditure Survey and a triple-difference estimation, we find that the program crowds out private transfers by 37 percent, and it does so mainly by reducing the probability of receiving domestic remittances. As a result, the non-labor income of beneficiaries increases by less than their government transfers. Thus, by reducing their private support to elderly adults, domestic donors are dampening the effect of the program, although not completely neutralizing it.
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