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Conditional cash transfers in Brazil, Chile and Mexico: impacts upon inequality

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Author Info

  • Sergei Soares

    (Instituto de Pesquisa Econômica Aplicada)

  • Rafael Guerreiro Osório

    (International Poverty Centre, UNDP)

  • Fábio Veras Soares

    (Instituto de Pesquisa Econômica Aplicada)

  • Marcelo Medeiros

    (Instituto de Pesquisa Econômica Aplicada)

  • Eduardo Zepeda

    (Carnegie Endowment for International Peace)

Abstract

We decompose changes in the Gini coefficient to investigate whether the Conditional Cash Tranfers (CCT) have had an inequality reducing effect in three Latin American countries: Brazil, Mexico and Chile. We conclude that CCT programs helped reducing inequality between the mid-1990s and the mid-2000s. The share of total income represented by the CCTs is very small, less than 1%. But as their targeting is outstanding, the equalising impact of CCTs was responsible for about 21% of the fall in Brazilian and Mexican inequality figures In Chile the effect was responsible for around 15% of the reduction.

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File URL: http://codex.colmex.mx:8991/exlibris/aleph/a18_1/apache_media/TL3MDNRBN5J937GBIPJCDERDKHY78C.pdf
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Bibliographic Info

Article provided by El Colegio de México, Centro de Estudios Económicos in its journal Estudios Económicos.

Volume (Year): - (2009)
Issue (Month): Special issue ()
Pages: 207-224

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Handle: RePEc:emx:esteco:v:-:y:2009:i:special:p:207-224

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Web page: http://www.colmex.mx/centros/cee/
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Related research

Keywords: Conditional Cash Transfers; CCT; inequality; Gini decomposition;

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  1. Hoddinott, John & Skoufias, Emmanual, 2003. "The impact of Progresa on food consumption," FCND briefs 150, International Food Policy Research Institute (IFPRI).
  2. Atkinson, A B, 1997. "Bringing Income Distribution in from the Cold," Economic Journal, Royal Economic Society, vol. 107(441), pages 297-321, March.
  3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," NBER Working Papers 8460, National Bureau of Economic Research, Inc.
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