The Effect of Agricultural Subsidies on Migration and Agricultural Employment

John Scott and Alfredo Cuecuecha

No DTE 474, Working Papers from CIDE, División de Economía

Abstract: Procampo was launched in 1994 to help the transition from low productivity activities to high productivity activities, among other policy objectives. We investigate the effects of Procampo on migration flows from Mexico to third countries (mainly the US), and the employment dynamics in the agricultural sector. Our results show that Procampo reduces the migration flows from Mexico to the US, while we find that does not benefit all agricultural job creation in Mexico. It benefits corn and beans job creation while it affects negatively job creation in other agricultural crops.

Keywords: Agriculture; Subsidies; Migration; Employment (search for similar items in EconPapers)
JEL-codes: O13 Q18 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2010-02
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Citations: View citations in EconPapers (2)

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