{
  "title": "Targeting Social Transfers to the Poor in Mexico",
  "publication": "IMF Working Papers, March 1, 2009",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/targeting-social-transfers-to-the-poor-in-mexico-22683",
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  "summary": "Mexico’s main social support program, Oportunidades, combines two methods to target cash to poor households: an initial self-selection by households who acquire knowledge about the program and apply for benefits, followed by an administrative determination of eligibility based on a means test.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Mexico’s main social support program, Oportunidades, combines two methods to target cash to poor households: an initial self-selection by households who acquire knowledge about the program and apply for benefits, followed by an administrative determination of eligibility based on a means test.\n- Self-selection improves targeting by excluding high-income households, while administrative targeting does so mainly by excluding middle-income households.\n- The two methods are complementary: expanding program knowledge across households substantially increases applications from non-poor households, thus reinforcing the importance of administrative targeting.\n- Targeting can be further improved through redesigning the means test and differentiating transfers according to demographic characteristics."
    },
    {
      "heading": "Major findings and analysis",
      "content": "- Self-selection mechanism:\n  - Excludes high-income households through the requirement that households acquire knowledge about the program and apply for benefits.\n- Administrative targeting (means test):\n  - Excludes mainly middle-income households.\n- Interaction effect:\n  - Expanding program knowledge across households substantially increases applications from non-poor households, which increases the reliance on administrative targeting to prevent leakage to non-poor households.\n- Potential improvements:\n  - Redesigning the means test.\n  - Differentiating transfers according to demographic characteristics.\n\n---\n\n Content in this bundle\n\n- wp0960 — References / Chapter 2: Application Outcomes Under Universal Knowledge\n  - wp0960 — References / Chapter 2: Application Outcomes Under Universal Knowledge (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0960 — References / Chapter 2: Application Outcomes Under Universal Knowledge (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/targeting-social-transfers-to-the-poor-in-mexico-22683"
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    "Authors: David Coady, Susan Parker",
    "Published: March 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451872071.001",
    "Mexico’s main social support program, Oportunidades, combines two methods to target cash to poor households: an initial self-selection by households who acquire knowledge about the program and apply for benefits, followed by an administrative determination of eligibility based on a means test.",
    "Self-selection improves targeting by excluding high-income households, while administrative targeting does so mainly by excluding middle-income households.",
    "The two methods are complementary: expanding program knowledge across households substantially increases applications from non-poor households, thus reinforcing the importance of administrative targeting.",
    "Targeting can be further improved through redesigning the means test and differentiating transfers according to demographic characteristics.",
    "Self-selection mechanism:",
    "Administrative targeting (means test):",
    "Interaction effect:",
    "Potential improvements:",
    "**_wp0960 — References / Chapter 2: Application Outcomes Under Universal Knowledge**"
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