Impact of the Prospera program in Oaxaca, Veracruz and Istmo based on autonomous income

Abstract

Mexico concentrates the marginalization in the southeastern states, to counteract this problem the federal government implemented several universal social programs, including Prospera. This research analyzes the impact generated among the beneficiaries of the Prospera Program based on income from work, and the variables of education, health, food security, both at the state level in Veracruz and Oaxaca and in the Istmo region that integrate both states. The Propensity Score Matching method was used to assess the impacts on labor inclusion that have those who receive the program, in contrast, with those who do not receive federal support. In addition, through the Analysis of Main Components, we related the productive and marginalization variables to find the characteristics of the study population. The results show that the Prospera program does not have a significant impact on the per capita income of the head of household. However, quintiles two and five have greater negative effects for the population from the Istmo. It is essential to revalue the Prospera Program strategy and incorporate more rigorous administration to have a positive impact for the rural population dedicated to agricultural activities.