Conditional Cash Transfers, Schooling and Child Labor: Micro-Simulating Bolsa Escola

François Bourguignon, Francisco Ferreira and Phillippe G. Leite

DELTA Working Papers from DELTA (Ecole normale supérieure)

Abstract: Cash transfers targeted to poor people, but conditional on some behavior on their part, such as school attendance or regular visits to health care facilities, are being adopted in a growing number of developing countries. Even where ex-post impact evaluations have been conducted, a number of policy-relevant counterfactual questions have remained unanswered. These are questions about the potential impact of changes in program design, such as benefit levels or the choice of the means-test, on both the current welfare and the behavioral response of household members. This paper proposes a method to simulate the effects of those alternative program designs on welfare and behavior, based on micro-econometrically estimated models of household behavior. In an application to Brazil's recently introduced federal Bolsa Escola program, we find a surprisingly strong effect of the conditionality on school attendance, but a muted impact of the transfers on the reduction of current poverty and inequality levels.

Date: 2003
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Working Paper: Conditional cash transfers, schoolingand child labor: micro-simulating bolsa escola (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:del:abcdef:2003-07

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