The long term effects of Bolsa Família on child labour and school enrollment
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2015-04-30
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Ferreira, Pedro Cavalcanti Gomes
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In this paper we study the e ects of conditional cash transfers in school enrolment and tackling child labour. We develop a dynamic heterogeneous agent general equilibrium model, where households face a set of tradeo s while allocating their children's time in leisure activities, schooling and working. We calibrate the model using data from the Brazilian survey PNAD in order to quantify the e ects of a conditional transfer. We then evaluate the results of a policy experiment that implements a conditional cash transfer scheme similar to the Brazilian Bolsa Familia. Our results suggest that the program, in the long term, is able to substantially increase school registration and reduce child labour and poverty. In addition, we nd out that a progressive conditional cash transfer results in even more bene ts.