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Conditional Cash Transfers in Brazil, Chile and Mexico: Impacts upon Inequality

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Author Info

  • Sergei Suarez Dillon Soares

    () (Institute of Applied Economic Research (IPEA))

  • Rafael Guerreiro Osório

    () (International Poverty Centre)

  • Fabio Veras Soares

    () (International Poverty Centre)

  • Marcelo Medeiros

    () (International Poverty Centre)

  • Eduardo Zepeda

    () (International Poverty Centre)

Abstract

This Working Paper decomposes changes in the Gini coefficient in order to investigate whether Conditional Cash Transfers (CCT) have had an inequality reducing effect in three Latin American countries: Brazil, Mexico and Chile. Its technique is the decomposition of the Gini coefficient by factor components. Its main finding is that CCT programmes helped reduce inequality between the mid-1990s and roughly the mid-2000s. The share of total income represented by the CCTs has been very small: about 0.5 per cent in Mexico and Brazil and a very small 0.01 per cent in Chile. But since their targeting has been outstanding, their equalizing impact was responsible for about 21 per cent of the fall in both the Brazilian and the Mexican Gini index, each of which fell by approximately 2.7 points during the period that this paper reviewed. In Chile the effect was responsible for a 15 per cent reduction in inequality, although the total reduction in inequality was very modest: a mere 0.1 Gini point. The difference was due to the small size of the Chilean programme relative to the larger Mexican and Brazilian programmes.

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File URL: http://www.ipc-undp.org/pub/IPCWorkingPaper35.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by International Policy Centre for Inclusive Growth in its series Working Papers with number 35.

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Length: 24
Date of creation: Apr 2007
Date of revision:
Publication status: Published by UNDP - International Poverty Centre, April 2007, pages 1-24
Handle: RePEc:ipc:wpaper:35

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Keywords: Distribution; Conditional Cash Transfers; Brazil; Chile; Mexico;

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References

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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).
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Citations

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Cited by:
  1. Barrientos, Armando, 2011. "On the Distributional Implications of Social Protection Reforms in Latin America," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Marcelo Medeiros & Tatiana Britto & Fabio Veras Soares, 2008. "Targeted Cash Transfer Programmes in Brazil: BPC and the Bolsa Familia," Working Papers 46, International Policy Centre for Inclusive Growth.
  3. Ricardo N. Bebczuk, 2008. "Financial Inclusion in Latin America and the Caribbean: Review and Lessons," CEDLAS, Working Papers 0068, CEDLAS, Universidad Nacional de La Plata.
  4. Pedro H. G. Ferreira de Souza, 2012. "Poverty, Inequality and Social Policies in Brazil, 1995-2009," Working Papers 87, International Policy Centre for Inclusive Growth.
  5. Moller, Lars Christian, 2012. "Fiscal policy in Colombia : tapping its potential for a more equitable society," Policy Research Working Paper Series 6092, The World Bank.
  6. Calabria, Alejandro A. & Calero, Analía Verónica & D´Elia, Vanesa & Gaiada, Julio & Rottenschweiler, Sergio, 2010. "Asignación Universal por Hijo para Protección Social: una política de inclusión para los más vulnerables
    [Universal Allocation per Child for Social Protection: an inclusion policy for the most    ," MPRA Paper 36058, University Library of Munich, Germany.
  7. Menezes, Naercio Filho & Scorzafave, Luiz, 2009. "Employment and Inequality of Outcomes in Brazil," Ibmec Working Papers wpe_200, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
  8. Leonardo Gasparini & Guillermo Cruces & Leopoldo Tornarolli & Mariana Marchionni, 2009. "A Turning Point? Recent Developments on Inequality in Latin America and the Caribbean," CEDLAS, Working Papers 0081, CEDLAS, Universidad Nacional de La Plata.
  9. Sergei Suarez Dillon Soares, 2012. "Bolsa Família, its Design, its Impacts and Possibilities for the Future," Working Papers 89, International Policy Centre for Inclusive Growth.
  10. Niño-Zarazúa, Miguel, 2011. "Mexico’s Progresa-Oportunidades and the emergence of social assistance in Latin America," MPRA Paper 29639, University Library of Munich, Germany.
  11. Md Ashiq Iqbal, 2008. "Macroeconomic Implications of Social Safety Nets in the Context of Bangladesh," Macroeconomics Working Papers 22289, East Asian Bureau of Economic Research.
  12. Andy Sumner, 2012. "Where Will the World’s Poor Live? An Update on Global Poverty and the New Bottom Billion," Working Papers 305, Center for Global Development.
  13. Md Ashiq Iqbal & Towfiqul Islam Khan & Tazeen Tahsina, 2008. "Macroeconomic Implications of Social Safety Nets in the Context of Bangladesh," CPD Working Paper 75, Centre for Policy Dialogue (CPD).
  14. Andy Sumner, 2012. "The Buoyant Billions: How “Middle Class” Are the New Middle Classes in Developing Countries? (And Why Does It Matter?)," Working Papers 309, Center for Global Development.

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