Can Non-Agricultural Employment Reduce Rural Poverty? Evidence From Mexico

This paper explores the role of the local context on the effectiveness of policy interventions in reducing poverty through non-agricultural rural employment (NARE). NARE is negatively associated to poverty in Mexico. Manufacturing employment is more poverty-reducing than services in semi urban munic...

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Autor principal: Araujo,Caridad
Lenguaje:English
Publicado: Instituto de Economía, Pontificia Universidad Católica de Chile 2004
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Acceso en línea:http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0717-68212004012400004
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Sumario:This paper explores the role of the local context on the effectiveness of policy interventions in reducing poverty through non-agricultural rural employment (NARE). NARE is negatively associated to poverty in Mexico. Manufacturing employment is more poverty-reducing than services in semi urban municipalities. In turn, services employment matters more in rural than in semi urban areas. Factors associated to pro-poor NARE are low income inequality, dynamic agriculture, and government expenditures. Policy interventions in education and roads are poverty-reducing through manufacturing employment in semi urban municipalities and through services employment in all municipalities