Effects of the bolsa família program on the economic wellbeing of rural families in brazilian macrorregions: a computable general equilibrium analysis

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August 2018
Paper author(s): 
R. Wolf
E. Cardoso Teixeira
A. Costa Gurgel
D. Freitas De Medeiros
Poverty - Inequality - Aid Effectiveness

.+This paper analyzes the effects of the Bolsa Família Program on the economic well-being of rural families in the Brazilian macro-regions, contributing to the debate on income transfer programs, analyzing the impacts on consumption and well-being of families. The specific objectives of the study are to analyze the impact of the Bolsa Program on the economic well-being of families living in rural areas in each Brazilian macro-region and on the impact of government transfers on the prices of primary factors. The results indicate that, although the program is initially efficient in promoting the fight against inequality, gains in terms of economic well-being are minimal, as well as reducing the price of the labor factor, suggesting that in the long run, besides the effects of the Bolsa Família Program becoming more lenient, and there is a need for transfers from the Bolsa Família Program to be linked to labor market policies in rural areas. The effects of a real public expenditure on the Bolsa Família Program in rural families in the Brazilian regions are low but positive and higher than the unit, which confirms the guiding hypothesis of the research.


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