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Effects of the Bolsa Família Program on Income And Consumption in Brazilian Macroregions

Author

Listed:
  • Wolf, Rayan
  • Teixeira, Erly Cardoso
  • Pereira, Matheus Wemerson Gomes
  • Gurgel, Angelo Costa
  • Marques Higano, Leandro Tamio

Abstract

This paper aims to analyze the impact of the Bolsa Família Program on the welfare, in terms of consumption, of Brazilian regions families, divided into ten income groups. The guiding hypothesis is that the rate of return of each real transferred to households through the Bolsa Família Program on GDP is positive and greater than unity. To achieve the proposed objectives, the analytical instrument used was the General Equilibrium Analysis Project of the Brazilian Economy (PAEG), an analytical set of static general equilibrium, multiregional and multisectoral. It was found that the government transfer to households via the Bolsa Família Program possesses minimum direct effects, nevertless it raises the consumption of regional Brazilian families, especially those in the low income classes. The program has a negative impact on wages, which would reduce the effects of the smooth program in the long-term, suggesting the need to adopt policies aimed at labor market to maintain the program results.

Suggested Citation

  • Wolf, Rayan & Teixeira, Erly Cardoso & Pereira, Matheus Wemerson Gomes & Gurgel, Angelo Costa & Marques Higano, Leandro Tamio, 2018. "Effects of the Bolsa Família Program on Income And Consumption in Brazilian Macroregions," Conference papers 330225, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330225
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    File URL: https://ageconsearch.umn.edu/record/330225/files/9080_Wolf.pdf
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