Abstract

This paper investigates whether the Brazilian conditional cash transfer programme, Bolsa Família (BF), contributes to improvements in school performance in test scores and pass-grades, and reductions in dropout rates for 4th grade children. Our results suggest a positive effect of length of participation in BF and amount of cash received with respect to school outcomes, but with substitute effects. A trend of increasing gains in school outcomes over time associated with BF participation raise an important challenge for policy makers: how much support to give, and for how long, to ensure progress in school outcomes?

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