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Decomposing the Effects of CCTs on Entrepreneurship

Author

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  • 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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    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. Victoria Menil, 2015. "Missed Opportunities in Global Health: Identifying New Strategies to Improve Mental Health in LMICs," Working Papers id:7987, eSocialSciences.
    3. 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;

    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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