Targeting Social Transfers to the Poor in Mexico

WPIEA2009060 Image
Price:  $18.00

Author/Editor: David Coady, Susan Parker
Release Date: © March, 2009
ISBN : 978-1-45187-207-1
Stock #: WPIEA2009060
Stock Status: On back-order

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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.


Economic policy , Social policy

More publications in this series: Working Papers

More publications by: David Coady ; Susan Parker