Decomposing the Effects of CCTs on Entrepreneurship
AbstractThis 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 InfoArticle provided by The World Bank in its journal Economic Premise.
Volume (Year): (2010)
Issue (Month): 41 (November)
CCTs; conditional cash transfers; entrepreneurship; Bolsa-Familia; Brazil; wealth; insurance; children; labor; developing countries;
Find related papers by JEL classification:
- O2 - Economic Development, Technological Change, and Growth - - Development Planning and Policy
- O21 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
- O23 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
- O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- I2 - Health, Education, and Welfare - - Education
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