Effects of income supplementation on health of the poor elderly: The case of Mexico

Abstract

We use an income supplementation experiment we designed in the state of Yucatan in Mexico for residents 70 y and older to evaluate health impacts of additional income. Two cities in the State of Yucatan, Valladolid (treatment) and Motul (control), were selected for the income supplementation experiment. Elderly residents of Valladolid were provided the equivalent of an additional $67 per month, a 44% increase in average household income. We designed a survey given to residents of both cities before and 6 mo after the income supplement about their health and other aspects of overall well-being. Both baseline and follow-up surveys collect self-reported data on health, physical functioning, and biomarkers. Anthropometric measurements for every age-eligible respondent, including height, weight, and waist circumference, were collected. We also collected lung capacity, grip strength, a series of balance tests, and a timed walk. Our results show significant health benefits associated with the additional income. Relative to the control site, there was a statistically significant improvement in lung function and an improvement in memory. These improvements are equivalent to a reduction in age of 5–10 y. Residents used their extra income to go to the doctor, buy their medications, and alleviate their hunger. The fear that this extra income could be undone by reduced transfers from other family members or unwise expenditures by the poor elderly appears to be unfounded.

Three Essays on Obesity: Food Environment, Attitudes toward Food, and Cash Transfers

“…However, the program had no strong effect on BMI, overweight, and obesity of the elderly, which mirrors findings from other studies in similar population (Téllez-Rojo et al, 2013;Aguila, Kapteyn and Smith, 2015). An increase in income may not have a short-run impact on BMI; but, it has an impact on health (as indicated by a decrease in anemia) and the quality of food intake (as indicated by a decrease in "tortilla" consumption).…”

“…Case and Deaton (1998) studied the large cash transfer program of pensions to the elderly in South Africa and revealed a positive effect on food expenditure and on the likelihood of spending on food. Aguila et al (2015) used data from the same experiment in which I based this study, the non-contributory pension to the elderly in Yucatan Mexico named Reconocer, and found significant positive impacts on the availability of food, income, number of doctor visits, buying medications, anemia, memory, and satisfaction with their family.…”

Income sources and intergenerational transfers in different regimes

“…In times of economic uncertainty and general insecurity, members of the older age groups provided assistance to their younger relatives, and shared their greater resources. Studies from South Africa (Case 2004) and Mexico (Aguila, Kapteyn, and Smith 2015) also suggest that these transfers could help to protect the health and survival of older eastern Germans. As the health of elderly people in eastern Germany has improved markedly since reunification (Vogt and Kluge 2013;Klenk et al 2007;Gjonça, Brockmann, and Maier 2000), it is possible that they benefited from this protective effect.…”

Designing cash transfer programs for an older population: The Mexican case

“…The baseline data sample includes 1,656 individuals, 1,146 of the treatment group and 510 of the control group. See Aguila et al (2015) for a more detailed explanation of the sample design.…”