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Impact Evaluation of the Brazilian Non-Contributory Pension Program Benefício de Prestação Continuada (BPC) on Family Welfare

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  • Pedro Rodrigues de OLIVEIRA
  • Ana Lúcia KASSOUF

Abstract

The Benefício de Prestação Continuada (BPC) program is a non‐contributory pension addressed to poor elders over 65 years‐old. This paper evaluates its effects on household composition and on labor market outcomes of the elders and their co‐residing relatives. We could not capture any sign of changes in the household composition due to the program. However we found decreases in the labor force participation of the elders, indicating that the program makes it possible for these poor elders to retire, what would not be possible otherwise. Also there is a drop in labor force participation of co‐residents. However, the effect is heterogeneous and the effect is concentrated for adults over 30 years old, while there is no effect for young adults. When analyzing only rural areas, we observed a decrease in labor participation of elders and co‐residents from 18 to 50 years old receiving BPC. We also observe a decrease in child labor.

Suggested Citation

  • Pedro Rodrigues de OLIVEIRA & Ana Lúcia KASSOUF, 2012. "Impact Evaluation of the Brazilian Non-Contributory Pension Program Benefício de Prestação Continuada (BPC) on Family Welfare," Working Papers PIERI 2012-12, PEP-PIERI.
    • Handle: RePEc:lvl:piercr:2012-12
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    References listed on IDEAS

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    2. Emma Aguila & Jung Ho Park & Alma Vega, 0. "Living Arrangements and Supplemental Income Programs for Older Adults in Mexico," Demography, Springer;Population Association of America (PAA), vol. 0, pages 1-24.
    3. Manuela A. de Paz-Báñez & María José Asensio-Coto & Celia Sánchez-López & María-Teresa Aceytuno, 2020. "Is There Empirical Evidence on How the Implementation of a Universal Basic Income (UBI) Affects Labour Supply? A Systematic Review," Sustainability, MDPI, vol. 12(22), pages 1-36, November.
    4. Habimana, Dominique & Haughton, Jonathan & Nkurunziza, Joseph & Haughton, Dominique Marie-Annick, 2021. "Measuring the impact of unconditional cash transfers on consumption and poverty in Rwanda," World Development Perspectives, Elsevier, vol. 23(C).
    5. Mena, Gary & Hernani-Limarino, Werner L., 2015. "Intended and Unintended Effects of Unconditional Cash Transfers: The Case of Bolivia's Renta Dignidad," IDB Publications (Working Papers) 7350, Inter-American Development Bank.
    6. Emma Aguila & Mariana López-Ortega & Luis Miguel Gutiérrez Robledo, 2018. "Non-contributory pension programs and frailty of older adults: Evidence from Mexico," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-19, November.
    7. Miguel Ángel Borrella Mas & Mariano Bosch Mossi & Marcello Sartarelli, 2016. "Non-Contributory Pensions Number-Gender Effects on Poverty and Household Decisions," Working Papers. Serie AD 2016-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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    More about this item

    Keywords

    impact evaluation; regression discontinuity design; cash transfer; social assistance; public policy; labor supply; child labor; school attendance.;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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