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The long-term effects of conditional cash transfers on child labor and school enrollment

Ferreira, Pedro Cavalcanti; Peruffo, Marcel Cortes

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Resumo

This paper investigates the long-term e ects of conditional cash transfers on school attainment and child labor. To this end, we construct a dynamic heterogeneous agent model, calibrate it with Brazilian data, and introduce a policy similar to the Brazilian Bolsa Fam lia. Our results suggest that this type of policy has a very strong impact on educational outcomes, sharply increasing primary school completion. The conditional transfer is also able to reduce the share of working children from 22% to 17%. We then compute the transition to the new steady state and show that the program actually increases child labor over the short run, because the transfer is not enough to completely cover the schooling costs, so children have to work to be able to comply with the program's schooling eligibility requirement. We also evaluate the impacts on poverty, inequality, and welfare.

Ficha do documento

Tipo
Estudo
Ano
2015
Instituição
Fundação Getulio Vargas. Escola de Pós-graduação em Economia
Idioma
Inglês
Acesso
Não informado
Identificador
oai:repositorio.fgv.br:10438/13910

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