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 Conditional Cash Transfers in Brazil, Chile and Mexico: Impacts upon Inequality
including som e unconditional cash transfers. CCT incom e is the com ponent under scrutiny, and is the incom e received by the fam ilies registered in the program m es. This com ponent exists, how ever, only for 2003-2004. The category of ‘other incom e’ includes every form...
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including som e unconditional cash transfers. CCT incom e is the com ponent under scrutiny, and is the incom e received by the fam ilies registered in the program m es. This com ponent exists, how ever, only for 2003-2004. The category of ‘other incom e’ includes every form of incom e registered by the survey that w as not classified in any of the other three categories. This last com ponent is com prised m ainly of rents, investm ent earnings and private transfers (donations and dom estic or international
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper35.pdf#page=8
www.undp-povertycentre.org/pub/IPCWorkingPaper35.pdf#page=8
6 International Poverty Centre W orking Paper nº 35 The transfer has three basic <span class="highlight">com</span> ponents, tw o of w hich are conditional and one non- conditional. H ouseholds benefiting from O portunidades receive an unconditional transfer in the am ount of 250 pesos ($ 32 PPP) per elderly adult in the household. Additionally, households receive a food support transfer of 189 pesos ($ 24 PPP) conditional on attending training sessions on nutrition and health. The m ore substantive transfer, though, is the
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper35.pdf#page=9
www.undp-povertycentre.org/pub/IPCWorkingPaper35.pdf#page=9
including som e unconditional cash transfers. CCT incom e is the <span class="highlight">com</span> ponent under scrutiny, and is the incom e received by the fam ilies registered in the program m es. This <span class="highlight">com</span> ponent exists, how ever, only for 2003-2004. The category of ‘other incom e’ includes every form of incom e registered by the survey that w as not classified in any of the other three categories. This last <span class="highlight">com</span> ponent is <span class="highlight">com</span> prised m ainly of rents, investm ent earnings and private transfers (donations and dom estic or international
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper35.pdf#page=10
www.undp-povertycentre.org/pub/IPCWorkingPaper35.pdf#page=10
8 International Poverty Centre W orking Paper nº 35 of recipient (e.g., w age em ployee or self-account w orker). The inform ation available in Chilean datasets m akes it very difficult, how ever, to reverse this adjustm ent. Also, this adjustm ent cannot be reproduced for the other countries. The third challenge w as related to the construction of total incom e.6 This involved questions about w hat should be <span class="highlight">com</span> puted, and w hat should not. In Chile and Mexico, it is custom ary to im pute the
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper35.pdf#page=11
www.undp-povertycentre.org/pub/IPCWorkingPaper35.pdf#page=11
Sergei Soares; Rafael G uerreiro O sório; Fábio Veras Soares; Marcelo Medeiros and Eduardo Zepeda 9 W here G is the G ini index, ck represents the coefficient of concentration of factor <span class="highlight">com</span> ponent k relative to total incom e and φk is the w eight of factor k in total incom e. D ifferencing [1] w e have: ( )k k k k k G c cϕ ϕ∆ = ∆ + ∆ � [2] The first term in the sum m ation represents the <span class="highlight">com</span> position effect and the second the effect of the change in the coefficient of concentration. If w e
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper35.pdf#page=18
www.undp-povertycentre.org/pub/IPCWorkingPaper35.pdf#page=18
rounded. Source: Pnad 1995, 2004; Casen 1996, 2003; Enigh 1996, 2004. Incom e from social security also had an im portant contribution to the dynam ics of inequality. It raised inequality in Brazil and Mexico but not in Chile. In Brazil and Mexico, a <span class="highlight">com</span> bination of greater concentration and a larger share of this m ore concentrated incom e <span class="highlight">com</span> ponent in the total overturned one sixth of the equalizing effect of the im proved distribution of labour incom es in Mexico and over-turned one quarter in Brazil
Cash Transfer Programmes in Brazil: Impacts on Inequality and Poverty
17. Note that to m ake the data from 2004 com patible w ith the data from 1995, it w as necessary to discard the inform ation that referred to the Rural North (w ith the exception of the state of Tocantins) since only after 2004 did this region begin to be included in the PNAD sam ple. 18....
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17. Note that to m ake the data from 2004 com patible w ith the data from 1995, it w as necessary to discard the inform ation that referred to the Rural North (w ith the exception of the state of Tocantins) since only after 2004 did this region begin to be included in the PNAD sam ple. 18. Recent studies on Brazil inequality (Soares(2006) and H offm an(2005)) have concentrated on the fall in inequality betw een 2001-2004 as the latter year indicate the start of the continuous fall in inequality
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=5
www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=5
interest paid on federal governm ent bonds and, therefore, can be understood as a form of governm ental transfer to the richest segm ent of the population at a m agnitude w hich is m uch greater than that of the transfers targeted on the poor.1 M ost of the prelim inary investigations that have been released up to now have only called attention to the great change verified in the <span class="highlight">com</span> ponent “other incom es” in term s of the volum e of resources m easured, as w ell as in its distribution: from the m ost
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=12
www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=12
10 International Poverty Centre W orking Paper nº 21 2.3 DISAGG REGATING TH E “O TH ER INCO M ES” 2.3.1 Separating the Incom e <span class="highlight">Com</span> ponents D eclared in “O ther Incom es” To separate the <span class="highlight">com</span> ponent “other incom es”, the idiosyncrasies of each program m e m ust be taken into consideration. In m onetary term s, the BPC is clearly differentiated from the other cash transfer program m es. O f the eight cash transfer program m es investigated by the 2004 PNAD supplem ent, it is the only one that is
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=13
www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=13
biases the results of the incidence analysis. Nonetheless, it is im portant to observe that w hen one refers to the existence of m ore than one BPC beneficiary per household, the Elderly Persons Act11 perm its the exclusion of the incom e of the BPC for the elderly in the <span class="highlight">com</span> putations of the value of the fam ily incom e per capita if an elderly person in the sam e household requests the benefit, w hich can result in the accum ulation of BPCs in the sam e household (M edeiros, Diniz & Squinca, 2006). The
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=14
www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=14
12 International Poverty Centre W orking Paper nº 21 <span class="highlight">com</span> prise a series of transferences w ith rules that are distinct for each program m e and unknow n unidentifiable from the PNAD dataset, and there is no inform ation about the presence of disabled persons in the household, w hich is a problem for BPC. This does not m ean that there is no clear prevalence of typical values from the different cash transfer program m es: R$ 7—Cooking G as Stipend (per m onth); R$ 15—Bolsa Família and Bolsa Escola
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=15
www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=15
confused w ith that of another cash transfer program m e. 3 INCID ENCE AND EFFECTS O N INEQ U ALITY AND PO VERTY 3.1 INCIDENCE O F TH E CASH TRANSFER PRO GRAM M ES In order to analyze the incidence of the incom e of the cash transfer program m es, w e w ill analyze the concentration curves and the concentration indices of the incom e that <span class="highlight">com</span> es from the BPC, from the incom e that <span class="highlight">com</span> es from the other cash transfer program m es (Bolsa Família and others), and from the incom e that <span class="highlight">com</span> es from the
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=18
www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=18
age. For this reason, w e analyze pensions that are below or equal to the m inim um w age in order to capture those non- contributory pensions w hich are also an im portant <span class="highlight">com</span> ponent of the cash transfers in Brazil. Figure 5 show s that sim ilar to the BPC and to the Bolsa Família, pensions linked to the m inim um w age seem to be w ell targeted in an ex-ante analysis: 64% of the reported incom e in this <span class="highlight">com</span> ponent goes to fam ilies that w ould be living below the poverty line w ithout this
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=23
www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=23
Fabio Veras Soares, Sergei Soares, M arcelo M edeiros and Rafael G uerreiro O sório 21 Returning to the concentration of the different <span class="highlight">com</span> ponents, it is interesting to observe that the m ost concentrated <span class="highlight">com</span> ponent is the one that refers to the incom e from rents w ith a concentration index of 77.80, follow ed by the pensions and retirem ent funds that are above the social security floor, w ith a concentration index of 75.78, and by the residual incom e <span class="highlight">com</span> ponent that w e associate w ith
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=24
www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=24
0.149 0.244 0.056 - 0.025 -0.137 0.203 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 3.2 RO BUSTNESS ANALYSIS O F TH E DISAGGREGATIO N O F TH E “O TH ER INCO M ES” CO M PO NENT In order to analyze the robustness of the disaggregation of the “other incom es” <span class="highlight">com</span> ponent, w e w ill use the distribution of this <span class="highlight">com</span> ponent in 1995 (at 2004 values) as our reference param eter.16 Let us assum e that the average real incom es from “interest” (the original 2004 other incom es) appropriated by each
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=26
www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=26
24 International Poverty Centre W orking Paper nº 21 3.3 DECO M PO SITIO N O F TH E EFFECTS O N INEQ UALITY The recent reduction in inequality in Brazil is already a know n fact. Soares (2006) show s that the 2004 G ini Index (0.568) is the low est since the National H ousehold Survey started in the m id-1970’s.18 Despite the trem endous w eight of the labor incom e w hich <span class="highlight">com</span> prises 73% of the total incom e, an im portant part of the reduction in inequality can be attributed to the “other incom
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www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=32
transferências não são a causa principal da redução da desigualdade”. Econômica. V.7 N.2. Dezem bro. IBG E (2006) “Aspectos <span class="highlight">Com</span> plem entares de Educação e Acesso a Trasferências de Renda de Program m eas Sociais. PNAD. M edeiros, M .; Diniz, D.; Squinca, F. (2006)“Cash Benefits to Disabled Persons in Brazil: an analysis of the BPC – Continuous Cash Benefit Program m e”. IPC W orking Paper 16. Brasilia. International Poverty Centre. M DS – M inistério do Desenvolvim ento Social (2006) “M anual de O rientação do
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=34
www.undp-povertycentre.org/pub/IPCWorkingPaper21.pdf#page=34
17. Note that to m ake the data from 2004 <span class="highlight">com</span> patible w ith the data from 1995, it w as necessary to discard the inform ation that referred to the Rural North (w ith the exception of the state of Tocantins) since only after 2004 did this region begin to be included in the PNAD sam ple. 18. Recent studies on Brazil inequality (Soares(2006) and H offm an(2005)) have concentrated on the fall in inequality betw een 2001-2004 as the latter year indicate the start of the continuous fall in inequality
The Impact of Unconditional Cash Transfers on Nutrition: The South African Child Support G...
Jorge M . Agüero; M ichael R. Carter and Ingrid W oolard 15 ( ) � � � � � � −−= iii XDR ' 22 ˆ ˆ2 1 exp ˆ2 1 ˆ ψ σσpi In the second stage, w e use a flexible function for ( )rd ,β . A s suggested b...
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Jorge M . Agüero; M ichael R. Carter and Ingrid W oolard 15 ( ) � � � � � � −−= iii XDR ' 22 ˆ ˆ2 1 exp ˆ2 1 ˆ ψ σσpi In the second stage, w e use a flexible function for ( )rd ,β . A s suggested by H irano and Im bens (2004) w e use a quadratic approxim ation: ( ) [ ] iiiiiiiiiii RDRRDDRDYERD 52432210,|, ααααααβ +++++== The set of param eters ( )50 ,, ααα � = can be estim ated using ordinary least squares. G iven the estim ated param eters, w e can com pute the average potential
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper39.pdf#page=14
www.undp-povertycentre.org/pub/IPCWorkingPaper39.pdf#page=14
12 International Poverty Centre W orking Paper nº 39 The <span class="highlight">com</span> m unity questionnaire also asked about the m ain im provem ents in the <span class="highlight">com</span> m unity since 1999. Corroborating the evidence that health services have not been generally im proving over the period of the CSG grant, only six per cent of <span class="highlight">com</span> m unities identified hospitals and clinics as the m ost im proved service since 1999, and another 4.7 per cent and 6.4 per cent listed them as the second and third m ost im proved service. These num bers
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper39.pdf#page=17
www.undp-povertycentre.org/pub/IPCWorkingPaper39.pdf#page=17
Jorge M . Agüero; M ichael R. Carter and Ingrid W oolard 15 ( ) � � � � � � −−= iii XDR ' 22 ˆ ˆ2 1 exp ˆ2 1 ˆ ψ σσpi In the second stage, w e use a flexible function for ( )rd ,β . A s suggested by H irano and Im bens (2004) w e use a quadratic approxim ation: ( ) [ ] iiiiiiiiiii RDRRDDRDYERD 52432210,|, ααααααβ +++++== The set of param eters ( )50 ,, ααα � = can be estim ated using ordinary least squares. G iven the estim ated param eters, w e can <span class="highlight">com</span> pute the average potential
Poverty, Growth and Income Distribution in Lebanon
NOTES 1. Taking into account household size, age and gender com position, consum ption estim ates here include food and non- food consum ption, im puted rents, im puted value of hom e-grown food and in-kind transfers received by households. However, due to data lim itations, the flow of serv...
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NOTES 1. Taking into account household size, age and gender com position, consum ption estim ates here include food and non- food consum ption, im puted rents, im puted value of hom e-grown food and in-kind transfers received by households. However, due to data lim itations, the flow of services from consum er durables is not taken into account, with the one exception of services provided by m eans of transportation (such as cars and trucks). Actual consum ption does not include gifts to other
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http://www.undp-povertycentre.org/pub/IPCCountryStudy13.pdf#page=23
www.undp-povertycentre.org/pub/IPCCountryStudy13.pdf#page=23
NOTES 1. Taking into account household size, age and gender <span class="highlight">com</span> position, consum ption estim ates here include food and non- food consum ption, im puted rents, im puted value of hom e-grown food and in-kind transfers received by households. However, due to data lim itations, the flow of services from consum er durables is not taken into account, with the one exception of services provided by m eans of transportation (such as cars and trucks). Actual consum ption does not include gifts to other
Is all Socioeconomic Inequality among Racial Groups in Brazil Caused by Racial Discriminat...
12 International Poverty Centre Working Paper nº 43 was 5.6 percentage points. In three decades, this indicator jum ped to 25.1 per cent for Whites and 18.3 per cent for Blacks—so that the proportional gap was 1.4 but the absolute gap was 6.9 percentage points. CHART 5 Generalized Concent...
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12 International Poverty Centre Working Paper nº 43 was 5.6 percentage points. In three decades, this indicator jum ped to 25.1 per cent for Whites and 18.3 per cent for Blacks—so that the proportional gap was 1.4 but the absolute gap was 6.9 percentage points. CHART 5 Generalized Concentration Curves of the Adult Population w ith Com pleted Secondary Education in the Incom e D istribution. Brazil, 1976-2005 0.0 0.1 0.2 0.3 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 W-1976 B-1976 W-1987 B-1987 W
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper43.pdf#page=14
www.undp-povertycentre.org/pub/IPCWorkingPaper43.pdf#page=14
12 International Poverty Centre Working Paper nº 43 was 5.6 percentage points. In three decades, this indicator jum ped to 25.1 per cent for Whites and 18.3 per cent for Blacks—so that the proportional gap was 1.4 but the absolute gap was 6.9 percentage points. CHART 5 Generalized Concentration Curves of the Adult Population w ith <span class="highlight">Com</span> pleted Secondary Education in the Incom e D istribution. Brazil, 1976-2005 0.0 0.1 0.2 0.3 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 W-1976 B-1976 W-1987 B-1987 W
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