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Article
Affiliation(s)

Universidad Autónoma Benito Juárez de Oaxaca, State of Oaxaca, Mexico
Tecnológico Nacional de México/Instituto Tecnológico de Oaxaca, State of Oaxaca, Mexico

ABSTRACT

This paper highlights the main features of the economy of rural households in Mexico and analyzes their strategies to entry in local and global markets. It built a model of household economies using ordinary least squares regression with data collected through a probabilistic survey in four communities. Especial care was taken to avoid multicollinearity problems. The study communities are situated in Oaxaca state, Mexico in two contrasting climatic environments that present different conditions to access the markets. The resulting model not only identifies the households’ market strategies but also measures the impact of households’ decision-making about allocation of resources on the household wellbeing. Contrary to the discourse on Mexico-US migration, this paper shows that the rural households’ labor for international migration is shrinking. A process of diversification of income sources is already going on in rural areas, therefore, households rely increasingly on wages, family businesses, and government transfers; besides, they complement their income with subsistence production and transfers from other households. Finally, it was found that in some cases the simultaneous allocation of material and socio-demographic resources to economic activities and labor markets could restrict the increase in household wellbeing if the demographic structure is already altered.

KEYWORDS

market strategies, impacts on household wellbeing, restrictions to allocation of resources

Cite this paper

Economics World, Sep.-Oct. 2018, Vol. 6, No. 5, 337-349 doi: 10.17265/2328-7144/2018.05.001

References

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