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Decomposing the Effects of CCTs on Entrepreneurship

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  • Lichand, Guilherme

    ()
    (World Bank)

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    Abstract

    This note assesses whether Bolsa-Família increases the probability of starting a venture in Brazil by decomposing its potential effects into three channels: wealth-constraint alleviation, insurance provision, and reduction of children’s labor supply (through the effect of the conditionality). Results are that entrepreneurship is indeed stimulated by Bolsa-Família in urban areas through the insurance and wealth-constraint alleviation effects, notwithstanding that new ventures are typically secondary sources of income. The conditionality seems not to impact the level of entrepreneurship. Hence, Bolsa-Família might have a positive long-term effect as well, instead of just offering short-term poverty relief.

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    Bibliographic Info

    Article provided by The World Bank in its journal Economic Premise.

    Volume (Year): (2010)
    Issue (Month): 41 (November)
    Pages: 1-4

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    Handle: RePEc:wbk:prmecp:ep41

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    Keywords: CCTs; conditional cash transfers; entrepreneurship; Bolsa-Familia; Brazil; wealth; insurance; children; labor; developing countries;

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