Agricultural Workers, Credit Rationing and Family Networks in Rural Mexico

Emmanuelle Bouquet, Sol�ne Morvant-Roux and Gerardo Rodriguez-Solis

Journal of Development Studies, 2015, vol. 51, issue 5, 523-537

Abstract: We use mixed methods and first-hand household data in Mexico to investigate credit practices by households engaged in agricultural wage employment. Quantitative analysis shows evidence of rationing in the formal sector but also suggests the existence of mitigating mechanisms. Qualitative analysis provides additional insights. First, income patterns associated with agricultural wage generate income smoothing needs that are sometimes better met by the informal sector. Second, family networks can perform key functions as gateways to the formal sector, through specific informal arrangements that inject flexibility into formal rules and procedures.

Date: 2015
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DOI: 10.1080/00220388.2014.983910

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