Effecs of Bolsa Família on rural welfare: a computable equilibrium analysis

Abstract

This paper analyzes the effects of the Bolsa Família Program on the economic well-being of rural families in the Brazilian macrorregions, contributing to the debate on income transfer programs. The 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 macrorregion 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, considering the rural families, are low but positive and higher than the unit, which confirms the guiding hypothesis of the research.