ECON 112 Lecture Notes - Lecture 7: Prospero, Oportunidades, Human Capital

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ochreseal273

29 Jan 2022

School

UCLA

Department

Economics

Course

ECON 112

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Document Summary

Ccts are welfare benefits provided conditionally based on family behavior: sending the children to school or visiting health clinics. Seamless plan to go from before birth till they enter the labor market. Short-run reduce current poverty by increasing consumption expenditure. Long-run reduce long-term poverty through human capital investments in children. Households with children between 8- and 15-years old attending school. Co-responsibilities: children"s school attendance, healthcare (check-up appointments, participation in the health and nutrition workshops) Proxy means testing: the government collects information on assets and demographic characteristics to create a proxy for household consumption or income, and this proxy is in turn used for targeting. Establishment of eligibility is a multistage process: local program staff use questionnaires to generate lists which are then adjusted by community members in community meetings. Transfer size depends on school grade reflects increasing opportunity cost of keeping children in school: size of payment increases as kids go through school.

Related Questions

Mexico has two main government programs that transfer income to rural households. They are:

PROCAMPO, which pays a set amount per acre to farmers who grew basic grains in a base year prior to the elimination of guaranteed prices. Output price guarantees are not allowed under the North American Free Trade Agreement (NAFTA) or the World Trade Organization (WTO) rules.The idea here was to replace the price support with a direct income payment to farmers, to compensate them for lower grain prices. Direct income payments are allowed, because unlike price supports, they are not expected to affect production (in ag policy jargon, they areâdecoupled.â) Most PROCAMPO payments go to corn farmers, big and small.

OPORTUNIDADES, a conditional welfare program that gives payments to poor women provided that their children are enrolled in schools and in the local clinic. The idea is to combat poverty in the short run (by giving money to women, the responsible ones!) and in the long run (by making sure kids get the human capital they need to be productive and make an income when they get older). This has become a model for welfare programs in less-developed countriesâand even in New York City!

a) How would you expect each one of these public transfer programs to affect (i) inequality and(ii) poverty in rural Mexico? Why?

During the improving economic conditions of 2015 and early 2016 much additional construction of homes and condos throughout much of the U.S. took place. This provided a significant increase in the income of workers in the construction trades. Many of the construction workers were immigrants and have family and relatives in other countries. Often these workers would send part of their income to their less fortunate relatives in their old country, especially in Mexico and some of the South American countries.

Which of the economic principles best describes this situation?

skyrabbit299

Mexico, in 1982, was the first Latin American country that declared its bankruptcy.
Argentina, Brazil and the rest of the Latin American countries followed. The average
rate of inflation during the 80

ECON 112 Lecture Notes - Lecture 7: Prospero, Oportunidades, Human Capital

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