Motivations of Mexican Workers to Participate in Canada’s Seasonal Agricultural Workers Program: An Empirical Analysis Lidia Carvajal (UAEM-México) lecarvajalg@uaemex.mx Judith Stallmann (MU-USA) stallmannj@missouri.edu The authors would like to thank the Mexican Consulate in Toronto and the United Farm Workers in America for support in conducting the survey. Outline Introduction Research Project Objectives (3) Framework: (Literature review) Overview of CSAWP Research design Motivations to participate in CSAWP Regression model and results/conclusions Introduction Changing fortunes of Mexican agricultural sector Support industrialization in the 40’s 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) 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? Framework • Off-farm work to increase income (dual jobholding) • Off-farm income as a diversification strategy for family income. Literature beginning in 1930s in US; 1980’s 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) Motivations for Migration (literature review I) Study Factor/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 (+) Age2 (-: life cycle, resettle) Size of family (+) Number of schooling years on legal (-)*** and illegal migration (-) Probit model Mexico-US (Pátzcuaro, Mich) Multinomial logit Mexico-US Probit model Mexico-US Expected absolute income gains (+) Motivations for Migration (literature review II) Study Factor/reason Technique/ instrument Origin-Destination 2.Security Needs Sana and Massey, 2000 Social security system Interviews Mexico-US Roberts et al., 1999 Kinship and friendship In-depth interviews Mexico City-US Family members in the US on international (+)*** and national (-)* migration Probit regression Mexico-US (Jal. Mich., Pue., Coah) Have a migrant relative in the destination country (+)*** Have migrants from the same community in the destination country (+)*** Logistic regression Mexico-US (IMSS survey) 3. Networks Yunez-Naude, 2001 Massey and GarciaEspaña, 1987 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 • Mexico’s objectives: – Increase employment and family income – Increase farming skills of participants 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 Mexican Agricultural Workers Participating in CSAWP 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 18499 16536 10708 6508 5204 203 676 1974 1980 1990 1998 2005 2010 2013 MLSW,2013 The Program has had a quantitative increase of approximately 73 %, between 2005 and 2013 (MLSW,2013). Selection Criteria for CSAWP in Mexico • 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 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 México Tlaxcala Guanajuato Puebla Morelos Hidalgo México Tlaxcala Guanajuato Puebla Morelos Hidalgo Veracruz Oaxaca Michoacán Other 23% 23 % 16% 16 % 7.2% 6.9% 6.6% 6.0% 5.5% 4.9% 4.4% 4.4% 19.5% Program 23.4% 12.8% 8.6% 12.8% 5.8% 6.6% Sample 23 % 16 % 7.2% 6.9% 6.6% 6.0% 13 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) Southern Ontario 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 • Motivations—importance ranked on a 5-point Likert Scale – Some motivations are captured with more than one question for a total of 12 questions Motivations Responses 1 2 3 4 5 Earn more income 4.79To earn more income Improve standard living … 4.72 To enhance my of family’s 4.62 4.60 4.58 4.45 3.78 3.44 3.36 2.94 2.63 1.46 Higher wages thanwages Mexico in Mexico Because of low Stable To earnincome a stable income Putput children through school To my children through … Improve my house To improve my house Invest in my To invest infarm my farm Learn newnew skillsskills To learn Experiences of others in Canada For experiences of others that … Invest in business To invest in new opportunities business … To see/know see/know another country To another country As a a way to Canada As waytotoemigrate emigrate to Canada Principal Component Analysis (Job/Incomes/investment) Reason for participating in CSAWP HHW FS&AI FA 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 family’s 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 (%) 30.0 22.5 18.1 Literature Compared with Principal Components Analysis • Items the literature has as separate motivations loaded on the same component—more income, income stability, standard of living. • Items literature grouped did not load on same component—standard of living, housing and children’s 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) Regression Model To identify the which characteristics are associated with the factors to emigrate, we regress: j=1,…,3 loaded factor: HHW, FS&AI and FA i=1,…,253 individuals in the sample and n=1,…,16 exogenous variables. Regression Model Y α j β jnREG1 β jnREG3 β jn AGE βjn Age β jnEDURESPONDENT β jnEDUSPOUSESECONDARY ji i i i i i i β jnEDUCSPOUSEHIGH β jnChild1 β jnChild3 β jnRBE β jnSBE i i i i i β jnLENGTHCONTRACT β jnFARM β jnDAYLABORIER β jnCONSTRUCTION β jnEJIDO e i i i i i ji 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. Demographic characteristics’ influence on motivations to participate+ Variable Constant Income 0.51 Investment 0.25 Family -1.10** Region of origin: Northern Southern Interviewee’s age -0.10 0.52*** -0.04*** -0.31** 0.20 0.007 0.17 -0.05 -0.01 Spouse’s age 0.036*** -0.01 0.018 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. • Interviewee’s age negatively associated with income • Spouse’s age positively associated with income Demographic characteristics’ influence on motivations to participate+ Variable Migrant’s education Spouse’s education Secondary High school Economic dependents Child1 D=1 less than 2 children More than 4 children Income 0.05*** Investment Family -0.042*** -0.0027 -0.28** -0.52*** -0.21* -0.15 0.046 -0.93*** -0.20 0.27 0.12 -0.15 0.37 0.24** -0.21 0.24 0.03 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. Demographic characteristics’ influence on motivations to participate+ Variable Read basic English Length of Contract Occupation in Mexico—Construction Occupation in Mexico—Day-laborer Occupation in Mexico— Farmer Land tenancy: ejido R2 Income 0.31** -0.11*** Investment Family -0.27*** 0.45*** -0.018 0.10** -0.02 -0.29 0.76*** 0.29 0.18 0.26 -0.17 0.25* 0.16 0.60*** 0.30*** 0.34 0.31 0.008 0.20 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. 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 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 migration—US vs Canada. May not want to leave permanently. – Networks—longer history in US so more networks than Canada. The formal program may substitute for a network. Thank You Motivations of Mexican Workers to Participate in Canada’s Seasonal Agricultural Workers Program: An Empirical Analysis Lidia Carvajal (UAEM-México) lecarvajalg@uaemex.mx Judith Stallmann (MU-USA) stallmannj@missouri.edu The authors would like to thank the Mexican Consulate in Toronto and the United Farm Workers in America for support in conducting the survey.