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Evidence of eligibility manipulation for conditional cash transfer programs

  • Firpo, Sergio
  • Pieri, Renan
  • Pedroso Jr., Euclides
  • Souza, Andre Portela

This paper assesses whether eligibility for conditional cash transfer programs has been manipulated, as well as the impact of this phenomenon on time allocation within households. To perform this analysis, we use data from the 2006 PNAD (Brazilian national household survey) and investigate the eligibility manipulation for the Bolsa Família (Family Stipend) program during this time period. The program assists families with a monthly per capita income of around R$120.00 (US$60.00). By applying the tests developed by McCrary (2008), we find suggestive evidence that individuals manipulate their income by voluntarily reducing their labor supply in order to become eligible to the program. Moreover, the reduction in labor supply is greater among women, especially single or divorced mothers. This evidence raises some concern about the unintended consequences related to the eligibility criteria utilized by Bolsa Família, as well as the program's impact on individuals living in extreme poverty..

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File URL: http://bibliotecadigital.fgv.br/dspace/bitstream/10438/11344/1/TD+352+-+CMICRO+26+-+Sergio+Firpo+-+Renan+Pieri+-+Euclides+Pedroso+Jr.-+Andr%C3%A9+Portela+Souza+-.pdf
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Paper provided by Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil) in its series Textos para discussão with number 352.

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Date of creation: 09 Dec 2013
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Handle: RePEc:fgv:eesptd:352
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  1. Maluccio, John A. & Flores, Rafael, 2005. "Impact evaluation of a conditional cash transfer program: the Nicaraguan Red de Protección Social," Research reports 141, International Food Policy Research Institute (IFPRI).
  2. Tavares, Priscilla Albuquerque, 2010. "Efeito do Programa Bolsa Família sobre a oferta de trabalho das mães," Revista Economia e Sociedade, Instituto de Economia, Universidade Estadual de Campinas (UNICAMP), vol. 41, pages 23, December.
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  6. Andrea Rodrigues Ferro & Ana Lúcia Kassouf, 2003. "Avaliação do Impacto dos Programas de Bolsa Escola na Incidência de Trabalho Infantil no Brasil," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] f32, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  7. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
  8. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," Working Papers DT/2003/10, DIAL (Développement, Institutions et Mondialisation).
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  10. Skoufias, Emmanuel & di Maro, Vincenzo, 2006. "Conditional cash transfers, adult work incentives, and poverty," Policy Research Working Paper Series 3973, The World Bank.
  11. Samir Cury & Allexandro Mori Coelho & Isabela Callegari, 2010. "The Impacts of Income Transfer Programs on Income Distribution and Poverty in Brazil: An Integrated Microsimulation and Computable General Equilibrium Analysis," Working Papers MPIA 2010-20, PEP-MPIA.
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  13. Eliana Cardoso & Andre Portela Souza, 2004. "The Impact of Cash Transfers on Child Labor and School Attendance in Brazil," Vanderbilt University Department of Economics Working Papers 0407, Vanderbilt University Department of Economics.
  14. Miguel Nathan Foguel & Ricardo Paes de Barros, 2008. "The Effects of Conditional Cash Transfer Programmes on Adult Labour Supply: An Empirical Analysis Using a Time-Series-Cross-Section," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211655420, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  15. Andrea Rodrigues Ferro & Ana Lucia Kassouf & Deborah Levison, 2011. "The Impact Ofconditional Cash Transfer Programs On Household Work Decisions In Brazil," Anais do XXXVII Encontro Nacional de Economia [Proceedings of the 37th Brazilian Economics Meeting] 208, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  16. Flavio Marques & Simone Covre & Enlinson Mattos, 2008. "Oferta de trabalho e transferências: Evidências do efeito das condições impostas pelo programa Bolsa-Família," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807141223420, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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