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Impact Evaluation of the Brazilian Non-Contributory Pension Program Benefício de Prestação Continuada (BPC) on Family Welfare

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  • Pedro Rodrigues de OLIVEIRA
  • Ana Lúcia KASSOUF
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    Abstract

    The Benefício de Prestação Continuada (BPC) program is a non‐contributory pension addressed to poor elders over 65 years‐old. This paper evaluates its effects on household composition and on labor market outcomes of the elders and their co‐residing relatives. We could not capture any sign of changes in the household composition due to the program. However we found decreases in the labor force participation of the elders, indicating that the program makes it possible for these poor elders to retire, what would not be possible otherwise. Also there is a drop in labor force participation of co‐residents. However, the effect is heterogeneous and the effect is concentrated for adults over 30 years old, while there is no effect for young adults. When analyzing only rural areas, we observed a decrease in labor participation of elders and co‐residents from 18 to 50 years old receiving BPC. We also observe a decrease in child labor.

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    Bibliographic Info

    Paper provided by PEP-PIERI in its series Working Papers PIERI with number 2012-12.

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    Date of creation: 2012
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    Handle: RePEc:lvl:piercr:2012-12

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    Related research

    Keywords: impact evaluation; regression discontinuity design; cash transfer; social assistance; public policy; labor supply; child labor; school attendance.;

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    1. Robert Holzmann & David A. Robalino & Noriyuki Takayama, 2009. "Closing the Coverage Gap : The Role of Social Pensions and Other Retirement Income Transfers," World Bank Publications, The World Bank, number 2651, January.
    2. Eric Edmonds & Kristin Mammen & Douglas L. Miller, 2004. "Rearranging the Family? Income Support and Elderly Living Arrangements in a Low Income Country," NBER Working Papers 10306, National Bureau of Economic Research, Inc.
    3. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    4. Case, A. & Deaton, A., 1996. "Large Cash Transfers to the Elderly in South Africa," Papers 176, Princeton, Woodrow Wilson School - Development Studies.
    5. Irineu Evangelista de Carvalho Filho, 2012. "Household Income as a Determinant of Child Labor and School Enrollment in Brazil: Evidence from a Social Security Reform," Economic Development and Cultural Change, University of Chicago Press, vol. 60(2), pages 399 - 435.
    6. Fabio Veras Soares & Sergei Soares & Marcelo Medeiros & Rafael G. Osório, 2006. "Programas De Transferências De Renda No Brasil: Impactos Sobre A Desigualdade," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 156, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    7. Browning, M. & Chiappori, P.A., 1994. "Efficient Intra-Household allocations: A General Characterization and Empirical Tests," DELTA Working Papers 94-16, DELTA (Ecole normale supérieure).
    8. Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, vol. 81(2), pages 386-414, December.
    9. de Carvalho Filho, Irineu Evangelista, 2008. "Old-age benefits and retirement decisions of rural elderly in Brazil," Journal of Development Economics, Elsevier, vol. 86(1), pages 129-146, April.
    10. Mauricio Cortez Reis & José Márcio Camargo, 2008. "Aposentadoria, Pressão Salarial e Desemprego por Nível de Qualificação," Revista Brasileira de Economia, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 62(3), pages 299-331, November.
    11. Battistin, Erich & Rettore, Enrico, 2008. "Ineligibles and eligible non-participants as a double comparison group in regression-discontinuity designs," Journal of Econometrics, Elsevier, vol. 142(2), pages 715-730, February.
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