Impacts of Bolsa Família program in the labor market and income of rural workers

Abstract

This study evaluates the effects of the Bolsa Família Program (PBF) in the labor market of poor families living in rural areas of Brazil. For the analysis, we used the Census (2010) and two methodologies: Balancing Entropy Quantílico and treatment effect (EQT), checking the average effect and throughout the distribution, respectively. To improve the balance between the treated group and control was applied CEM algorithm developed by Iacus, King, and Porro (2009). Thus, combined with the CEM balancing entropy to determine the Average Treatment Effect on Treaties (ATT). As a result, it was observed that in Brazil and regions, the working hours of the beneficiaries is lower than that of non-beneficiaries, as well as labor income. The effects on distribution, for most quantile the effect is null, however, in some quantile, beneficiaries have fewer working hours than non beneficiaries. Therefore, the results in the average indicated a possible "disincentive effect" of the program on the hours worked, causing a decrease in household income from work. On the other hand, the analysis by quantile can not say the same, as the results of the effects on hours worked were different.