Motivations of Mexican Workers to Participate in Canada’s Seasonal Agricultural Workers Program: An Empirical Analysis Lidia Carvajal (UAEM-México) [email protected]

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  • Motivations of Mexican Workers to Participate in Canadas Seasonal Agricultural Workers Program: An Empirical Analysis Lidia Carvajal (UAEM-Mxico) [email protected] Judith Stallmann (MU-USA) [email protected] The authors would like to thank the Mexican Consulate in Toronto and the United Farm Workers in America for support in conducting the survey.
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  • Outline Introduction Research Project Objectives (3) Framework: (Literature review) Overview of CSAWP Research design Motivations to participate in CSAWP Regression model and results/conclusions
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  • Changing fortunes of Mexican agricultural sector Support industrialization in the 40s but left behind Crisis of the 1960s up to now Declining farm income & Declining demand for Ag. employment International migration appears as an escape valve (skilled and non skilled workers + government: CSAWP) Introduction
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  • Research Project Objectives (3) Remittances (not the focus of this paper): Estimate the value of the remittances How remittances ate used and the economic multiplier effects they have in their communities Impact on farm activities in Mexico (not the focus of this paper) Motivations: Learn the motivations for participation. How do the regional, individual and family characteristics of participants influence their motivations?
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  • Framework Off-farm work to increase income (dual job- holding) Off-farm income as a diversification strategy for family income. Literature beginning in 1930s in US; 1980s another burst of research. Migration within the country or to another country is a diversification strategy Income stabilization Probability of finding a job combined with higher wage. Canada program guarantees job. (Migration literature) Migration as a social insurance substitute, particularly with structural adjustment (Sana & Massey, 2000)
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  • StudyFactor/reason Technique/ instrument Origin-Destination 1.Income/Job/ Education Stark and Taylor, 1989 Massey and Espinosa, 1997; Stark and Taylor, 1991 Taylor 1987 Wage differential (+) Relative deprivation in absence of migration (+) Migration networks and experience (+) Age 2 (-: life cycle, resettle) Size of family (+) Number of schooling years on legal (-)*** and illegal migration (-) Expected absolute income gains (+) Probit model Multinomial logit Probit model Mexico-US (Ptzcuaro, Mich) Mexico-US Motivations for Migration (literature review I)
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  • StudyFactor/reason Technique/ instrument Origin-Destination 2.Security Needs Sana and Massey, 2000 Roberts et al., 1999 Social security system Kinship and friendship Interviews In-depth interviews Mexico-US Mexico City-US 3. Networks Yunez-Naude, 2001 Massey and Garcia- Espaa, 1987 Family members in the US on international (+)*** and national (-)* migration Have a migrant relative in the destination country (+)*** Have migrants from the same community in the destination country (+)*** Probit regression Logistic regression Mexico-US (Jal. Mich., Pue., Coah) Mexico-US (IMSS survey) Motivations for Migration (literature review II)
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  • Why Mexico Cooperates with Canada Off-farm income represents around 50% of farm household income Also true for the ejido sector Remittances are around 60% of income for 10% of Mexican farm households Remittances are 85% or more of local income in some rural communities Mexicos objectives: Increase employment and family income Increase farming skills of participants
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  • CSAWP Overview Established and designed to supply temporary foreign workers to agricultural producers in Canada Started with the Caribbean Commonwealth countries in 1966 Canada and Mexico signed Memorandum of Understanding starting with 203 men in 1974 In 2013 there were 18,499 Mexican workers in the program
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  • Mexican Agricultural Workers Participating in CSAWP The Program has had a quantitative increase of approximately 73 %, between 2005 and 2013 (MLSW,2013). MLSW,2013
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  • Agricultural skills Education: 3 years minimum; 12 maximum Age: Male 22-45/Female 23-40 Civil status: male married with children/female with children Healthy Selection Criteria for CSAWP in Mexico
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  • CSAWP Operation in Canada Employers must comply the Canadians first policy. Canadian farmers submit their labour requests through FARMS which in turn sends the list to the MLSW in Mexico The employer agrees to: Hire the worker for a term no less than 240 hrs in six weeks and up to 8 months Provide suitable free accommodation Pay a portion of the cost of the flight, other ground transportation and visa fees
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  • Mxico23% Tlaxcala16% Mxico23 % Tlaxcala16 % Guanajuato7.2% Mxico23 % Tlaxcala16 % Guanajuato7.2% Puebla6.9% Mxico23 % Tlaxcala16 % Guanajuato7.2% Puebla6.9% Morelos6.6% Mxico23 % Tlaxcala16 % Guanajuato7.2% Puebla6.9% Morelos6.6% Hidalgo6.0% Mxico23 % Tlaxcala16 % Guanajuato7.2% Puebla6.9% Morelos6.6% Hidalgo6.0% Veracruz5.5% Mxico23 % Tlaxcala16 % Guanajuato7.2% Puebla6.9% Morelos6.6% Hidalgo6.0% Veracruz5.5% Oaxaca4.9% Mxico23 % Tlaxcala16 % Guanajuato7.2% Puebla6.9% Morelos6.6% Hidalgo6.0% Veracruz5.5% Oaxaca4.9% Michoacn4.4% Mxico23 % Tlaxcala16 % Guanajuato 7.2% Puebla6.9% Morelos6.6% Hidalgo6.0% Veracruz5.5% Oaxaca4.9% Michoacn 4.4% Other 19.5% 13 ProgramSample Mxico23.4% 23 % Tlaxcala12.8% 16 % Guanajuato 8.6% 7.2% Puebla12.8% 6.9% Morelos 5.8% 6.6% Hidalgo 6.6% 6.0%
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  • Research Design Secondary data (scarse) In-depth interviews Survey: - 257 personal interviews with Mexican agricultural workers in Southern Ontario. - 76% located in Simcoe, Leamington, Halton, Hamilton and Bradford; - Remaining 24% in other six locations (Oakville, Georgetown, York, Toronto and Niagara)
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  • Southern Ontario
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  • Data collection Survey 257 Mexican guest farm-workers in Southern Ontario in 2006. Guest worker support centers and then visited at their place of work. Snowball technique to indentify others. Demographics Motivationsimportance ranked on a 5-point Likert Scale Some motivations are captured with more than one question for a total of 12 questions
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  • Motivations Responses Earn more income Improve standard of living Higher wages than Mexico Stable income Put children through school Improve my house Invest in my farm Learn new skills Experiences of others in Canada Invest in business opportunities To see/know another country As a way to emigrate to Canada
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  • Principal Component Analysis (Job/Incomes/investment) Reason for participating in CSAWP HHWFS&AIFA Because of low wages in Mexico (or no jobs).82 -.115.071 To earn more income.76.042.075 To earn a stable income.76.196-.117 To enhance my familys standard of living.69.032.075 To invest in my farm.060.91 -.059 To learn new skills.045.90.179 To put my children through school.040.000.86 To improve my house.056.101.85 Proportion of variation explained (%) 30.022.518.1
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  • Literature Compared with Principal Components Analysis Items the literature has as separate motivations loaded on the same componentmore income, income stability, standard of living. Items literature grouped did not load on same componentstandard of living, housing and childrens education Four did not load strongly on any component Invest in business opportunities Networks--experiences of others in Canada As a way to emigrate to Canada (they know program) To see/know another country (trial)
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  • To identify the which characteristics are associated with the factors to emigrate, we regress: Regression Model j=1,,3 loaded factor: HHW, FS&AI and FA i=1,,253 individuals in the sample and n=1,,16 exogenous variables.
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  • Regression Model Given that all of the motivations may contribute to the emigration decision, a system of equations is appropriate. The Iterative Seemingly Unrelated (ISUR) method, is recommended for estimation of systems where errors are correlated across equations and it is useful in cross-sectional data and panel models The correlation coefficient in was 0.92.
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  • VariableIncomeInvestmentFamily Constant0.510.25-1.10** Region of origin: Northern Southern -0.10 0.52*** -0.31** 0.20 0.17 -0.05 Interviewees age-0.04***0.007-0.01 Spouses age0.036***-0.010.018 Demographic characteristics influence on motivations to participate +
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  • Influences on Motivations Being from southern region of Mexico more associated with income than central region because the southern region is poorer. People from northern region are less motivated with investment because they may have more alternatives to immigrate to the USA instead of Canada. Interviewees age negatively associated with income Spouses age positively associated with income
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  • VariableIncomeInvestmentFamily Migrants education 0.05***-0.042***-0.0027 Spouses education Secondary High school -0.28** -0.52*** -0.21* -0.15 0.046 -0.93*** Economic dependents Child1 D=1 less than 2 children -0.20 0.27 -0.15 0.37 -0.21 0.24 More than 4 children0.120.24**0.03 Demographic characteristics influence on motivations to participate +
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  • Results Migrants with more education are more associated with income but less with investment in the farm than migrants with less schooling level. More educated spouse negatively associated with income and investment than those with elementary school. More than 4 children, more associated with investment motivation than 2 to 4 children. Less than two children not significantly different than two to four children on all motivations.
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  • VariableIncomeInvestmentFamily Read basic English0.31**-0.27***0.45*** Length of Contract-0.11***-0.0180.10** Occupation in MexicoConstruction -0.02-0.290.76*** Occupation in MexicoDay-laborer0.290.180.26 Occupation in Mexico Farmer -0.170.60***0.31 Land tenancy: ejido0.25*0.30***0.008 R2R2 0.160.340.20 Demographic characteristics influence on motivations to participate +
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  • Results Reading basic English associated with the three motivations Speaking not statistically significant Length of contract is negatively associated with income and positive with family. Construction occupation positively associated with family than those working in commerce or industry. As expected: those running a farm are more motivated to migrate because of the interest for investing in their farm than any body else working off-farm or in any other economic activity. In addition those running a farm in the ejido are positively related with investment.
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  • Future research A second objective was to estimate the value of the remittances and the economic multiplier effects in their communities. Remittances use in order of importance Daily Consumption House Improvements School expenses Investments Impact of participation on farm activities in Mexico Say skills they learn do not fit Mexico
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  • Contributions of the paper Most of the research on Mexican emigration, focuses on the US; very little on Canada Permanent versus seasonal migration Structures that affect the duration of migrationUS vs Canada. May not want to leave permanently. Networkslonger history in US so more networks than Canada. The formal program may substitute for a network.
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  • Thank You
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  • Motivations of Mexican Workers to Participate in Canadas Seasonal Agricultural Workers Program: An Empirical Analysis Lidia Carvajal (UAEM-Mxico) [email protected] Judith Stallmann (MU-USA) [email protected] The authors would like to thank the Mexican Consulate in Toronto and the United Farm Workers in America for support in conducting the survey.
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