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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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Listed:
  • 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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    1. Irineu Evangelista de Carvalho Filho, 2012. "Household Income as a Determinant of Child Labor and School Enrollment in Brazil: Evidence from a Social Security Reform," Economic Development and Cultural Change, University of Chicago Press, pages 399-435.
    2. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, pages 615-635.
    3. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, pages 1241-1278.
    4. Reis, Mauricio Cortez & Camargo, José Márcio, 2008. "Aposentadoria, Pressão Salarial e Desemprego por Nível de Qualificação," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 62(3), November.
    5. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-1361, September.
    6. de Carvalho Filho, Irineu Evangelista, 2008. "Old-age benefits and retirement decisions of rural elderly in Brazil," Journal of Development Economics, Elsevier, pages 129-146.
    7. Eric V. Edmonds & Kristin Mammen & Douglas L. Miller, 2005. "Rearranging the Family?: Income Support and Elderly Living Arrangements in a Low-Income Country," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    8. Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, pages 386-414.
    9. Robert Holzmann & David A. Robalino & Noriyuki Takayama, 2009. "Closing the Coverage Gap : The Role of Social Pensions and Other Retirement Income Transfers," World Bank Publications, The World Bank, number 2651.
    10. Battistin, Erich & Rettore, Enrico, 2008. "Ineligibles and eligible non-participants as a double comparison group in regression-discontinuity designs," Journal of Econometrics, Elsevier, vol. 142(2), pages 715-730, February.
    11. Fabio Veras Soares & Sergei Soares & Marcelo Medeiros & Rafael Guerreiro Osório, 2006. "Programas de Transferência de Renda no Brasil: impactos sobre a desigualdade," Discussion Papers 1228, Instituto de Pesquisa Econômica Aplicada - IPEA.
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    Cited by:

    1. Gary Mena & Werner L. Hernani-Limarino, 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.

    More about this item

    Keywords

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

    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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