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

42 Pages Posted: 4 Jan 2014 Last revised: 12 Jul 2018

See all articles by Ana Lucia Kassouf

Ana Lucia Kassouf

University of São Paulo (USP)

Pedro de Oliveira

Grande Dourados Federal University (UFGD)

Date Written: November 1, 2012

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.

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

JEL Classification: I38, J14, J22, J26, O01

Suggested Citation

Kassouf, Ana Lucia and de Oliveira, Pedro, Impact Evaluation of the Brazilian Non-Contributory Pension Program Benefício De Prestação Continuada (BPC) on Family Welfare (November 1, 2012). Partnership for Economic Policy Working Paper No. 2012-12, Available at SSRN: https://ssrn.com/abstract=2374388 or http://dx.doi.org/10.2139/ssrn.2374388

Ana Lucia Kassouf (Contact Author)

University of São Paulo (USP) ( email )

Rua Luciano Gualberto, 315
São Paulo, São Paulo 14800-901
Brazil

Pedro De Oliveira

Grande Dourados Federal University (UFGD) ( email )

Rodovia Dourados Itahum km 12, Un. 2
Cidade Universitaria, PO Box 364
Dourados, MS 79804-970
Brazil

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