The effects of conditional cash transfer programmes on adult labour supply: An empirical analysis using a time-series-cross-section sample of Brazilian municipalities

Abstract

In this paper, we estimate the effects of the Conditional Cash Transfer (CCT) programmes in Brazil on the labour supply of adult males and females. We employ the panel of municipalities that are continuously investigated by the Pesquisa Nacional por Amostra de Domicílios (PNAD/IBGE) over the years 2001-2005. The effects of the Brazilian CCT programmes are estimated both on the participation rate and the mean number of hours worked. Since PNAD does not ask directly surveyed families about CCT programme participation, we use an indirect procedure to identify beneficiary families. Our results indicate that the effects of interest are not significant both on statistical grounds and in terms of magnitude.