Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/89847 
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Papers No. 7786
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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.
Subjects: 
old-age government transfers
crowding-out
remittances
Mexico
JEL: 
H3
H55
J14
J18
Document Type: 
Working Paper

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