Download or read book The Impact of Conditional Cash Transfers on Labor Supply written by Vinicius Vidigal and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conditional cash transfer (CCT) programs have been widely implemented over the past two decades, and they have become an important part of the social safety net in many developing countries. A recurrent question, however, is whether transfers might affect individual participation in the labor market by generating disincentives to work. Therefore, this paper aims to answer the following question: Does Brazil's Bolsa Familia conditional cash transfer program discourage individuals from working, or at least from searching for a job? This study estimates the effects of Bolsa Familia on labor force participation and weekly hours worked using a fixed effects approach applied to a census tract-level panel data set based on the Brazilian National Household Survey (PNAD) from 2001 to 2009. The results show that, in general, participation in Bolsa Familia increases labor supply on the extensive margin, but also marginally reduces labor supply on the intensive margin. It has a positive impact on both employment and unemployment rates. The results also suggest an increase in informal employment at the expense of formal sector employment. In conclusion, the estimates suggest that the cash transfers do not introduce disincentives to work.