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Conditional cash transfers, schoolingand child labor: micro-simulating bolsa escola

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  • François Bourguignon

    (World Bank and DELTA)

  • Francisco H. G. Ferreira

    ()
    (World Bank and Department of Economics PUC-Rio)

  • Phillippe Leite

    (World Bank and Department of Economics PUC-Rio)

Abstract

Cash transfers targeted to poor people, but conditional on some behavior on their part, such as school attendance or regular visits to health care facilities, are being adopted in a growing number of developing countries. Even where ex-post impact evaluations have been conducted, a number of policy-relevant counterfactual questions have remained unanswered. These are questions about the potential impact of changes in program design, such as benefit levels or the choice of the means-test, on both the current welfare and the behavioral response of household members. This paper proposes a method to simulate the effects of those alternative program designs on welfare and behavior, based on microeconometrically estimated models of household behavior. In an application to Brazil’s recently introduced federal Bolsa Escola program, we find a surprisingly strong effect of the conditionality on school attendance, but a muted impact of the transfers on the reduction of current poverty and inequality levels.

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Bibliographic Info

Paper provided by Department of Economics PUC-Rio (Brazil) in its series Textos para discussão with number 477.

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Length: 36 pages
Date of creation: Oct 2003
Date of revision:
Handle: RePEc:rio:texdis:477

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Keywords: Conditional Transfers; Demand for Schooling; Child Labor JEL Codes: I38; J13; J22; J24;

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References

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  1. Gordon Dahl, 1997. "Mobility and the Returns to Education: Testing A Roy Model With Multiple Markets," Working Papers 760, Princeton University, Department of Economics, Industrial Relations Section..
  2. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
  3. Gertler, Paul & Glewwe, Paul, 1990. "The willingness to pay for education in developing countries : Evidence from rural Peru," Journal of Public Economics, Elsevier, vol. 42(3), pages 251-275, August.
  4. Ravallion, Martin & Wodon, Quentin, 2000. "Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy," Economic Journal, Royal Economic Society, vol. 110(462), pages C158-75, March.
  5. Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers 89-07, DELTA (Ecole normale supérieure).
  6. Schmertmann, Carl P., 1994. "Selectivity bias correction methods in polychotomous sample selection models," Journal of Econometrics, Elsevier, vol. 60(1-2), pages 101-132.
  7. Ferreira, Francisco H. G. & Lanjouw, Peter & Neri, Marcelo Cortes, 2002. "A Robust Poverty Profile for Brazil Using Multiple Data Sources," Economics Working Papers (Ensaios Economicos da EPGE) 444, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  8. Rosenzweig, Mark R & Evenson, Robert E, 1977. "Fertility, Schooling, and the Economic Contribution of Children in Rural India: An Econometric Analysis," Econometrica, Econometric Society, vol. 45(5), pages 1065-79, July.
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Cited by:
  1. Nicola Brandt, 2012. "Reducing Poverty in Chile: Cash Transfers and Better Jobs," OECD Economics Department Working Papers 951, OECD Publishing.
  2. N. Blunch & A. Dar & L. Guarcello & S. Lyon & A. Ritualo & F. Rosati, 2002. "Children's work in Zambia: a comparative study of survey instruments," UCW Working Paper 32, Understanding Children's Work (UCW Programme).
  3. François Bourguignon & Amadéo Spadaro, 2005. "Microsimulation as a tool for evaluating redistribution policies," PSE Working Papers halshs-00590863, HAL.
  4. L. Guarcello & S. Lyon, 2003. "Children's work and water access in Yemen," UCW Working Paper 53, Understanding Children's Work (UCW Programme).
  5. Alderman, Harold & Yemtsov, Ruslan, 2012. "Productive role of safety nets : background paper for the World Bank 2012-2022 social protection and labor strategy," Social Protection Discussion Papers 67609, The World Bank.
  6. Channarith Meng & Wade Pfau, 2012. "Simulating the Impacts of Cash Transfers on Poverty and School Attendance: The Case of Cambodia," Journal of Family and Economic Issues, Springer, vol. 33(4), pages 436-452, December.
  7. Barrientos, Armando, 2012. "Social Transfers and Growth: What Do We Know? What Do We Need to Find Out?," World Development, Elsevier, vol. 40(1), pages 11-20.

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