Social Programs and Formal Employment: Evidence from the Brazilian Bolsa Família Program


Book Description

Employment is key to combating poverty. Thus, detractors of social assistance programs argue that they create disincentives to work. While there is substantial evidence showing limited effects of these programs on overall labor supply, the jury is still out with respect to their impact on formal employment. This paper exploits an unannounced change in the eligibility rule of the Bolsa Familia program in Brazil, one of the oldest and largest conditional cash transfers in the world, to identify the causal impact of the program on formal employment, combining three large administrative datasets. This paper finds that the program has a positive effect on entry in formal labor market, especially for younger cohorts.




Conditional Cash Transfers


Book Description

Conditional Cash Transfer (CCT) programs aim to reduce poverty by making welfare programs conditional upon the receivers' actions. That is, the government only transfers the money to persons who meet certain criteria. These criteria may include enrolling children into public schools, getting regular check-ups at the doctor's office, receiving vaccinations, or the like. They have been hailed as a way of reducing inequality and helping households break out of a vicious cycle whereby poverty is transmitted from one generation to another. Do these and other claims make sense? Are they supported by the available empirical evidence? This volume seeks to answer these and other related questions. Specifically, it lays out a conceptual framework for thinking about the economic rationale for CCTs; it reviews the very rich evidence that has accumulated on CCTs; it discusses how the conceptual framework and the evidence on impacts should inform the design of CCT programs in practice; and it discusses how CCTs fit in the context of broader social policies. The authors show that there is considerable evidence that CCTs have improved the lives of poor people and argue that conditional cash transfers have been an effective way of redistributing income to the poor. They also recognize that even the best-designed and managed CCT cannot fulfill all of the needs of a comprehensive social protection system. They therefore need to be complemented with other interventions, such as workfare or employment programs, and social pensions.




Avoiding Governors


Book Description

With the goal of showing the effect of domestic factors on the performance of poverty alleviation strategies in Latin America, Tracy Beck Fenwick explores the origins and rise of conditional cash transfer programs (CCTs) in the region, and then traces the politics and evolution of specific programs in Brazil and Argentina. Utilizing extensive field research and empirical analysis, Fenwick analyzes how federalism affects the ability of a national government to deliver CCTs. One of Fenwick's key findings is that broad institutional, structural, and political variables are more important in the success or failure of CCTs than the technical design of programs. Contrary to the mainstream interpretations of Brazilian federalism, her analysis shows that municipalities have contributed to the relative success of Bolsa Familia and its ability to be implemented territory-wide. Avoiding Governors probes the contrast with Argentina, where the structural, political, and fiscal incentives for national-local policy cooperation have not been adequate, at least this far, to sustain a CCT program that is conditional on human capital investments. She thus challenges the virtue of what is considered to be a mainly majoritarian democratic system. By laying out the key factors that condition whether mayors either promote or undermine national policy objectives, Fenwick concludes that municipalities can either facilitate or block a national government's ability to deliver targeted social policy goods and to pursue a poverty alleviation strategy. By distinguishing municipalities as separate actors, she presents a dynamic intergovernmental relationship; indeed, she identifies a power struggle between multiple levels of government and their electorates, not just a dichotomously framed two-level game of national versus subnational.




The Short-Term Impact of COVID-19 on Labor Markets, Poverty and Inequality in Brazil


Book Description

We document the short-term impact of the COVID-19 pandemic on the Brazilian labor market focusing on employment, wages and hours worked using the nationally representative household surveys PNAD-Continua and PNAD COVID. Sectors most susceptible to the shock because they are more contact-intensive and less teleworkable, such as construction, domestic services and hospitality, suffered large job losses and reductions in hours. Given low income workers experienced the largest decline in earnings, extreme poverty and the Gini coefficient based on labor income increased by around 9.2 and 5 percentage points, respectively, due to the immediate shock. The government’s broad based, temporary Emergency Aid transfer program more than offset the labor income losses for the bottom four deciles, however, such that poverty relative to the pre-COVID baseline fell. At a cost of around 4 percent of GDP in 2020 such support is not fiscally sustainable beyond the short-term and ended in late 2020. The challenge will be to avoid a sharp increase in poverty and inequality if the labor market does not pick up sufficiently fast in 2021.




The Social Life of Economic Inequalities in Contemporary Latin America


Book Description

This edited volume examines how economic processes have worked upon social lives and social realities in Latin America during the past decades. Through tracing the effects of the neoliberal epoch into the era of the so-called pink tide, the book seeks to understand to what extent the turn to the left at the start of the millennium managed to challenge historically constituted configurations of inequality. A central argument in the book is that in spite of economic reforms and social advances on a range of arenas, the fundamental tenants of socio-economic inequalities have not been challenged substantially. As several countries are now experiencing a return to right-wing politics, this collection helps us better understand why inequalities are so entrenched in the Latin American continent, but also the complex and creative ways that it is continuously contested. The book directs itself to students, scholars and anyone interested in Latin America, economic anthropology, political anthropology, left-wing politics, poverty and socio-economic inequalities. This work was published by Saint Philip Street Press pursuant to a Creative Commons license permitting commercial use. All rights not granted by the work's license are retained by the author or authors.




The Takeover of Social Policy by Financialization


Book Description

This book critically addresses the model of social inclusion that prevailed in Brazil under the rule of the Workers Party from the early 2000s until 2015. It examines how the emergence of a mass consumer society proved insufficient, not only to overcome underdevelopment, but also to consolidate the comprehensive social protection system inherited from Brazil’s 1988 Constitution. By juxtaposing different theoretical frameworks, this book scrutinizes how the current finance-dominated capitalism has reshaped the role of social policy, away from rights-based decommodified benefits and towards further commodification. This constitutes the Brazilian paradox: how a center-left government has promoted and boosted financialization through a market incorporation strategy using credit as a lever for expanding financial inclusion. In so doing, it has pushed the subjection of social policy further into the logic of financial markets.




Just Give Money to the Poor


Book Description

* Argues strongly for overlooked approach to development by showing how the poor use money in ways that confound stereotypical notions of aid and handouts * Team authored by foremost scholars in the development field Amid all the complicated economic theories about the causes and solutions to poverty, one idea is so basic it seems radical: just give money to the poor. Despite its skeptics, researchers have found again and again that cash transfers given to significant portions of the population transform the lives of recipients. Countries from Mexico to South Africa to Indonesia are giving money directly to the poor and discovering that they use it wisely “ to send their children to school, to start a business and to feed their families. Directly challenging an aid industry that thrives on complexity and mystification, with highly paid consultants designing ever more complicated projects, Just Give Money to the Pooroffers the elegant southern alternative “ bypass governments and NGOs and let the poor decide how to use their money. Stressing that cash transfers are not charity or a safety net, the authors draw an outline of effective practices that work precisely because they are regular, guaranteed and fair. This book, the first to report on this quiet revolution in an accessible way, is essential reading for policymakers, students of international development and anyone yearning for an alternative to traditional poverty-alleviation methods.




How to Build M and E Systems to Support Better Government


Book Description

A growing number of governments are working to improve their performance by creating systems to measure and help them understand their performance. These systems for monitoring and evaluation (M & E) are used to measure the quantity, quality, and targeting of the goods and services--the outputs--that the state provides and to measure the outcomes and impacts resulting from these outputs. These systems are also a vehicle to facilitate understanding of the causes of good and poor performance.




Conditional Cash Transfer Programmes


Book Description

Summarizes experience with conditional cash transfer or "co-responsibility" (CCT) programmes in Latin America and the Caribbean, over a period lasting more than 15 years.




Effects of the Business Cycle on Social Indicators in Latin America and the Caribbean


Book Description

After mediocre growth in 2018 of 0.7 percent. LAC is expected to perform only marginally better in 2019 (growth of 0.9 percent) followed by a much more solid growth of 2.1 percent in 2020. LAC will face both internal and external challenges during 2019. On the domestic front. the recession in Argentina; a slower than expected recovery in Brazil from the 2014-2015 recession, anemic growth in Mexico. and the continued deterioration of Venezuela. present the biggest challenges. On the external front. the sharp drop in net capital inflows to the region since early 2018 and the monetary policy normalization in the United States stand among the greatest perils. Furthermore, the recent increase in poverty in Brazil because of the recession points to the large effects that the business cycle may have on poverty. The core of this report argues that social indicators that are very sensitive to the business cycle may yield a highly misleading picture of permanent social gains in the region.