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Cash transfer and female labor supply: evidence from Brazil’s rural area

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  • Lima, Fulvia Fernanda
  • Duarte, Gisléia Benini

Abstract

This paper analyzed the relationship between Bolsa Família Program (BFP) and labor supply of women in rural areas from Brazil, using the Propensity Score Matching (with the nearest-neighbor, kernel, and IPW criteria), Ordinary Least Squares on the treatment (beneficiaries), and control (non-beneficiaries) groups with the robustness analysis proposed by Oster (2015). The results showed that the BFP has an opposite effect to the one pronounced in the critiques of the program, the beneficiaries did not have more or fewer work hours than the non-beneficiaries, this fact can be explained by the value of the benefit not being able to meet the expenses of the household. From these results, we can conclude that both tests reinforce the importance of continuing the investigation of the effects on female labor supply in the rural environment in the light of different guidelines.

Suggested Citation

  • Lima, Fulvia Fernanda & Duarte, Gisléia Benini, 2021. "Cash transfer and female labor supply: evidence from Brazil’s rural area," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 59(4), January.
    • Handle: RePEc:ags:revi24:341081
    DOI: 10.22004/ag.econ.341081
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    References listed on IDEAS

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    1. Emily Oster, 2019. "Unobservable Selection and Coefficient Stability: Theory and Evidence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 187-204, April.
    2. Fernando Borraz & Nicolás González, 2009. "Impact of the Uruguayan Conditional Cash Transfer Program," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 46(134), pages 243-271.
    3. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    4. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
    5. Tavares, Priscilla Albuquerque, 2010. "Efeito do Programa Bolsa Família sobre a oferta de trabalho das mães," Revista Economia e Sociedade, Instituto de Economia, Universidade Estadual de Campinas (UNICAMP), vol. 41, pages 1-23, December.
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    Labor and Human Capital;

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