Decomposing the Effects of CCTs on Entrepreneurship
Conditional cash transfers boosted a major reduction in poverty and a significant decrease in inequality in developing countries over the past decade. However, their success in promoting economic development is challenged by the claim that they dea...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101109085644 http://hdl.handle.net/10986/3951 |
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okr-10986-39512021-04-23T14:02:14Z Decomposing the Effects of CCTs on Entrepreneurship Lichand, Guilherme AGRICULTURAL SUPPORT BANK OPERATIONS BORROWING CAPITAL ACCUMULATION CASH TRANSFER PROGRAMS CASH TRANSFERS CHILD LABOR CHOICE CHOICE OF OCCUPATION COLLATERAL CREDIT DATA AVAILABILITY DEVELOPING COUNTRIES ECONOMIC DEVELOPMENT ECONOMIC SHOCKS ECONOMICS EFFECTS EXPECTED UTILITY FARM PRODUCTION FINANCIAL ASSETS FUTURE GOODS HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD OWNERSHIP HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN CAPITAL FORMATION INCOME INCOME QUINTILE INEQUALITY INEQUALITY REDUCTION INFLUENCE INFORMATION INPUTS INSURANCE INTEREST INTEREST RATE INVESTMENT INVESTMENTS LABOR LABOR MARKET LABOR MARKETS LABOR SUPPLY LIVING STANDARDS LOTTERY MANAGEMENT MARKET WAGE MEASURES MICROCREDIT PROGRAMS MICROFINANCE MULTIPLIERS OCCUPATIONS ORGANIZATIONS OUTCOMES OWNERSHIP PAYMENTS PENSIONS PER CAPITA INCOME POOR POOR FAMILIES POOR HOUSEHOLD POOR HOUSEHOLDS POOR INDIVIDUALS POOR PARENTS PORTFOLIO POVERTY POVERTY REDUCTION PRODUCTION PRODUCTIVITY RURAL RURAL AREAS SAVINGS SECURITY SELF EMPLOYED SHARE SOCIAL CAPITAL SOCIAL DEVELOPMENT SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY STANDARDS STARTUP STARTUPS TARGETING TAX TRAINING TRANSFERS TROUGH UNEMPLOYED UNEMPLOYMENT UTILITY UTILITY FUNCTION VALUE VARIABLES WEALTH WELFARE Conditional cash transfers boosted a major reduction in poverty and a significant decrease in inequality in developing countries over the past decade. However, their success in promoting economic development is challenged by the claim that they deal with short-term poverty relief without providing the poor with the tools for breaking away from poverty by their own means. This claim, however, could be dismissed if conditional cash transfers had an effect on entrepreneurship. This paper assesses whether Bolsa-Familia increases the probability of starting a new venture in Brazil, decomposing its potential effects into three channels: alleviation of the wealth constraint, insurance against negative outcomes of risky activities, and reduction of the labor supply of children (through the effect of the conditionality). The effect of each of these channels is separately estimated using data from National Household Surveys in 2004 and 2006, for which the households of transfer beneficiaries can be identified. The results indicate that entrepreneurship is indeed stimulated by the program in urban areas throughout the insurance and wealth constraint alleviation effects, notwithstanding that new ventures are typically secondary sources of income. Finally, the conditionality seems not to have an impact on the level of entrepreneurship. 2012-03-19T18:42:44Z 2012-03-19T18:42:44Z 2010-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101109085644 http://hdl.handle.net/10986/3951 English Impact Evaluation series ; no. IE 46,Policy Research working paper ; no. WPS 5457 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean South America America Brazil |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGRICULTURAL SUPPORT BANK OPERATIONS BORROWING CAPITAL ACCUMULATION CASH TRANSFER PROGRAMS CASH TRANSFERS CHILD LABOR CHOICE CHOICE OF OCCUPATION COLLATERAL CREDIT DATA AVAILABILITY DEVELOPING COUNTRIES ECONOMIC DEVELOPMENT ECONOMIC SHOCKS ECONOMICS EFFECTS EXPECTED UTILITY FARM PRODUCTION FINANCIAL ASSETS FUTURE GOODS HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD OWNERSHIP HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN CAPITAL FORMATION INCOME INCOME QUINTILE INEQUALITY INEQUALITY REDUCTION INFLUENCE INFORMATION INPUTS INSURANCE INTEREST INTEREST RATE INVESTMENT INVESTMENTS LABOR LABOR MARKET LABOR MARKETS LABOR SUPPLY LIVING STANDARDS LOTTERY MANAGEMENT MARKET WAGE MEASURES MICROCREDIT PROGRAMS MICROFINANCE MULTIPLIERS OCCUPATIONS ORGANIZATIONS OUTCOMES OWNERSHIP PAYMENTS PENSIONS PER CAPITA INCOME POOR POOR FAMILIES POOR HOUSEHOLD POOR HOUSEHOLDS POOR INDIVIDUALS POOR PARENTS PORTFOLIO POVERTY POVERTY REDUCTION PRODUCTION PRODUCTIVITY RURAL RURAL AREAS SAVINGS SECURITY SELF EMPLOYED SHARE SOCIAL CAPITAL SOCIAL DEVELOPMENT SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY STANDARDS STARTUP STARTUPS TARGETING TAX TRAINING TRANSFERS TROUGH UNEMPLOYED UNEMPLOYMENT UTILITY UTILITY FUNCTION VALUE VARIABLES WEALTH WELFARE |
| spellingShingle |
AGRICULTURAL SUPPORT BANK OPERATIONS BORROWING CAPITAL ACCUMULATION CASH TRANSFER PROGRAMS CASH TRANSFERS CHILD LABOR CHOICE CHOICE OF OCCUPATION COLLATERAL CREDIT DATA AVAILABILITY DEVELOPING COUNTRIES ECONOMIC DEVELOPMENT ECONOMIC SHOCKS ECONOMICS EFFECTS EXPECTED UTILITY FARM PRODUCTION FINANCIAL ASSETS FUTURE GOODS HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD OWNERSHIP HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN CAPITAL FORMATION INCOME INCOME QUINTILE INEQUALITY INEQUALITY REDUCTION INFLUENCE INFORMATION INPUTS INSURANCE INTEREST INTEREST RATE INVESTMENT INVESTMENTS LABOR LABOR MARKET LABOR MARKETS LABOR SUPPLY LIVING STANDARDS LOTTERY MANAGEMENT MARKET WAGE MEASURES MICROCREDIT PROGRAMS MICROFINANCE MULTIPLIERS OCCUPATIONS ORGANIZATIONS OUTCOMES OWNERSHIP PAYMENTS PENSIONS PER CAPITA INCOME POOR POOR FAMILIES POOR HOUSEHOLD POOR HOUSEHOLDS POOR INDIVIDUALS POOR PARENTS PORTFOLIO POVERTY POVERTY REDUCTION PRODUCTION PRODUCTIVITY RURAL RURAL AREAS SAVINGS SECURITY SELF EMPLOYED SHARE SOCIAL CAPITAL SOCIAL DEVELOPMENT SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY STANDARDS STARTUP STARTUPS TARGETING TAX TRAINING TRANSFERS TROUGH UNEMPLOYED UNEMPLOYMENT UTILITY UTILITY FUNCTION VALUE VARIABLES WEALTH WELFARE Lichand, Guilherme Decomposing the Effects of CCTs on Entrepreneurship |
| geographic_facet |
Latin America & Caribbean Latin America & Caribbean South America America Brazil |
| relation |
Impact Evaluation series ; no. IE 46,Policy Research working paper ; no. WPS 5457 |
| description |
Conditional cash transfers boosted a
major reduction in poverty and a significant decrease in
inequality in developing countries over the past decade.
However, their success in promoting economic development is
challenged by the claim that they deal with short-term
poverty relief without providing the poor with the tools for
breaking away from poverty by their own means. This claim,
however, could be dismissed if conditional cash transfers
had an effect on entrepreneurship. This paper assesses
whether Bolsa-Familia increases the probability of starting
a new venture in Brazil, decomposing its potential effects
into three channels: alleviation of the wealth constraint,
insurance against negative outcomes of risky activities, and
reduction of the labor supply of children (through the
effect of the conditionality). The effect of each of these
channels is separately estimated using data from National
Household Surveys in 2004 and 2006, for which the households
of transfer beneficiaries can be identified. The results
indicate that entrepreneurship is indeed stimulated by the
program in urban areas throughout the insurance and wealth
constraint alleviation effects, notwithstanding that new
ventures are typically secondary sources of income. Finally,
the conditionality seems not to have an impact on the level
of entrepreneurship. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lichand, Guilherme |
| author_facet |
Lichand, Guilherme |
| author_sort |
Lichand, Guilherme |
| title |
Decomposing the Effects of CCTs on Entrepreneurship |
| title_short |
Decomposing the Effects of CCTs on Entrepreneurship |
| title_full |
Decomposing the Effects of CCTs on Entrepreneurship |
| title_fullStr |
Decomposing the Effects of CCTs on Entrepreneurship |
| title_full_unstemmed |
Decomposing the Effects of CCTs on Entrepreneurship |
| title_sort |
decomposing the effects of ccts on entrepreneurship |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101109085644 http://hdl.handle.net/10986/3951 |
| _version_ |
1764389179469332480 |