Publication: Decomposing the Effects of CCTs on Entrepreneurship
Date
2010-11
ISSN
Published
2010-11
Author(s)
Lichand, Guilherme
Abstract
This note assesses whether Bolsa-Familia
increases the probability of starting a venture in Brazil by
decomposing its potential effects into three channels:
wealth-constraint alleviation, insurance provision, and
reduction of children's labor supply (through the
effect of the conditionality). Results are that
entrepreneurship is indeed stimulated by Bolsa-Familia in
urban areas through the insurance and wealth-constraint
alleviation effects, notwithstanding that new ventures are
typically secondary sources of income. The conditionality
seems not to impact the level of entrepreneurship. Hence,
Bolsa-Familia might have a positive long-term effect as
well, instead of just offering short-term poverty relief.
Citation
“Lichand, Guilherme. 2010. Decomposing the Effects of CCTs on Entrepreneurship. Economic Premise; No. 41. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/41070183-5705-55cf-b298-67bcf07aced5 License: CC BY 3.0 IGO.”