Old-Age Government Transfers and the Crowding Out of Private Gifts: The 70 and Above Program for the Rural Elderly in Mexico

Catalina Amuedo-Dorantes and Laura Juarez

No 7786, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We estimate the crowding out of private transfers caused by 70 y Más – a public assistance program for the rural elderly in Mexico for whom family support is an important source of income. Using data from the Mexican Income and Expenditure Survey and a triple difference approach, we find that the program crowds out private gifts by 37 percent, and it does so mostly 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 the elderly, domestic donors are dampening the effect of the program, although not completely neutralizing it.

Keywords: remittances; old-age government transfers; crowding-out; Mexico (search for similar items in EconPapers)
JEL-codes: H3 H55 J14 J18 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2013-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Southern Economic Journal, 2015, 81 (3), 782–802

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Related works:
Journal Article: Old‐Age Government Transfers and the Crowding Out of Private Gifts: The 70 and Above Program for the Rural Elderly in Mexico (2015)
Working Paper: Old-Age Government Transfers and the Crowding Out of Private Gifts: The 70 and Above Program for the Rural Elderly in Mexico (2013)
Working Paper: Old-Age Government Transfers and the Crowding Out of Private Gifts: The 70 and Above Program for the Rural Elderly in Mexico (2013)
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