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A heterogeneity analysis of Bolsa Familia programme effect on men and women's work supply

Working Paper number 61, March, 2010

  • English
Gondim Teixeira, C.; International Policy Centre for Inclusive Growth (IPC-IG)
2010
22
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Summary (English)

This article analyses the impact of the Programa Bolsa Família (PBF), Brazil's Conditional CashTransfer Programme), by way of an "income shock" on the labour supply of beneficiaries asmeasured by probability of working and number of weekly hours worked by both men andwomen. Bolsa Família transfers are viewed as an income shock because they alter the incomecomposition in terms of earned and unearned income. The analysis is undertaken using thevalues of the transfers as the treatment indicator to show how the Average Treatment Effecton the Treated (ATT) varies according to the amount received. ATT estimates obtained fromthe Propensity Score Weighting method lead to the conclusion that PBF marginallydiminishes the supply of weekly work hours of working adults. The heterogeneous impactsof the cash transfers on men and women depending upon how they are placed in formal andinformal sectors, agricultural and non-agricultural sectors and wage rate ranges are alsoassessed. The results indicate a nil average effect on probability of working and a marginalreduction in the supply of labour hours for men and women. The impact is greater for informalworkers and unpaid workers and is more significant for higher values of the transfers.

Article cash / in-kind benefits
26.09.2011