Language:
English
Pages:
1 Online-Ressource (57 pages)
Parallel Title:
Erscheint auch als Mendes, Arthur The Macroeconomic Effects of Cash Transfers: Evidence from Brazil
Keywords:
Bartik Instrument
;
Bolsa Familia
;
Cash Transfer
;
Developing Countries
;
Development Economics and Aid Effectiveness
;
Employment
;
Fiscal Multiplier
;
Informality
;
Local Multiplier
;
Macroeconomics and Economic Growth
;
Poverty Reduction
;
Relative Multiplier
;
Services and Transfers to Poor
;
Social Protections and Labor
Abstract:
This paper provides new evidence on the macroeconomic impact of cash transfers in developing countries. Using a Bartik-style identification strategy, the paper documents that Brazil's Bolsa Familia transfer program leads to a large and persistent increase in relative state-level GDP, formal employment, and informal employment. A state receiving 1% of GDP in extra transfers grows 2.2% faster in the first year, with RD 100,000 of extra transfers generating five formal-equivalent jobs, half of which are informal. Consistent with a demand-side mechanism, the effects are concentrated in non-tradable sectors. However, an open-economy New Keynesian model only partially captures the high multipliers estimated
DOI:
10.1596/1813-9450-10652
URL:
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