The influence of Bolsa Familia conditional cash transfer program on child labor in Brazil

Abstract

PurposeThe Brazilian Government created the Bolsa Familia program to combat poverty and the insertion of so many children into the labor market. This program is an income transfer program subject to certain conditions such as a minimum school attendance for children under 17 years of age. In 2006, almost half of the people with an income per capita of R$300.00 (US$139.53) per month declared that they received this benefit. Accordingly, the purpose of this paper is to analyze the impact of Bolsa Familia on child labor in Brazil in 2006.Design/methodology/approachThe authors used a propensity score matching model with data from the National Household Sample Survey PESQUISA NACIONAL POR AMOSTRA DE DOMICÍLIOS (PNAD), for 2006.FindingsResults indicate that the program increased the number of hours of child labor in Brazil. However, this outcome might be explained by the fact that those families who received Bolsa Familia were also those with higher socioeconomic vulnerability. Thus, they need to guarantee their survival with the income generated via child labor.Social implicationsThe Brazilian Government needs to invest not only in monetary transfer policies but also in the improvement of the job market to create opportunities for the social development of children.Originality/valueThe contribution of the paper is the investigation into the effect of the Bolsa Familia program on the average time allocated to child labor; the authors find that this time allocation could be reduced by requiring a compulsory school attendance.