Motivações e fluxos das transferências interdomiciliares no brasil: uma aplicação utilizando o benefício de prestação continuada

Abstract

This study uses the framework developed by Donald Cox (1987) to inspect the flow of private interhousehold transfers in Brazil. More precisely, it investigates if exogenous increase in the income of transfer recipients, made by a public transfer, can decrease the transfers received. To test this hypothesis, this study used data from periods before and after two major legal changes in the rules of the Continuous Cash Benefit Programme (BPC). Created as a benefit directed to individuals 70 years old or older, BPC had its eligibility age reduced to 67 in 1998 and to 65 in 2004. These expansions on the benefit coverage can be seen as exogenous income increase directed to certain age groups. These particular situations serve as empirical cases which can be analyzed using a difference-in-difference strategy for estimating the impact of the policy change. Using PNAD data, it was found that the two changes in eligibility age were associated with a reduction both in the probability to receive private transfers and in the magnitude of transfers received by those age groups who became eligible. This indicates that families may crowd-out private transfers in response to public income transfers and points out that the possibility of crowding-out effects should be considered in the design of future income transfer policies in Brazil.