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Decomposing the Effects of CCTs on Entrepreneurship

Author

Listed:
  • Lichand, Guilherme

    (World Bank)

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.

Suggested Citation

  • Lichand, Guilherme, 2010. "Decomposing the Effects of CCTs on Entrepreneurship," World Bank - Economic Premise, The World Bank, issue 41, pages 1-4, November.
    • Handle: RePEc:wbk:prmecp:ep41
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    Citations

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    Cited by:

    1. Marcel Peruffo & Pedro Cavalcanti Ferreira, 2017. "The Long-Term Effects Of Conditional Cash Transfers On Child Labor And School Enrollment," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 2008-2030, October.
    2. Gehrke, Esther & Hartwig, Renate, 2015. "How can public works programmes create sustainable employment?," IDOS Discussion Papers 11/2015, German Institute of Development and Sustainability (IDOS).
    3. Lahiri, Bidisha & Daramola, Richard, 2023. "Effects of credit and labor constraints on microenterprises and the unintended impact of changes in household endowments: Use of threshold estimation to detect heterogeneity," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 21-38.
    4. Imane Helmy & Christian Richter & Khalid Siddig & Hebatallah Ghoneim, 2018. "A Comparison of the Economics Impacts of Conditional and Unconditional Cash Transfers in Egypt," Working Papers 50, The German University in Cairo, Faculty of Management Technology.
    5. Victoria Menil, 2015. "Missed Opportunities in Global Health: Identifying New Strategies to Improve Mental Health in LMICs," Working Papers id:7987, eSocialSciences.
    6. Rafael P. Ribas, 2014. "Liquidity Constraints, Informal Financing, and Entrepreneurship: Direct and Indirect Effects of a Cash Transfer Programme," Working Papers 131, International Policy Centre for Inclusive Growth.

    More about this item

    Keywords

    CCTs; conditional cash transfers; entrepreneurship; Bolsa-Familia; Brazil; wealth; insurance; children; labor; developing countries;
    All these keywords.

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O54 - Economic Development, Innovation, 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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