The effect of cash transfers from the PROSPERA programme (formerly Oportunidades) on poverty in urban households in Northeast Mexico

Abstract

ABSTRACTThe paper presents the effects of Mexico’s conditioned cash-transfers programme (PROSPERA programme, formerly Oportunidades) on household poverty in the Northeast urban areas. The estimate was calculated using the Foster-Greer-Thorbecke Index. We use three poverty lines (i.e. food, capability, and patrimonial poverty) which costs were established by the National Assessment Council of the Social Development Policy. The results show that, in the three lines, the intensity and inequality of poverty diminished. Regarding incidence, only in extreme poverty was found a significant effect, so, there is no evidence to support that cash transfers help households to escape poverty.