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The impact of the expansion of the Bolsa Familia Program on the time allocation of youths and their parents
Código: WPE – 326
Miguel Nathan Foguel
This paper evaluates the impact of the 2007 expansion of the Bolsa Família program to families with youths aged 16 to 17 years (entitled Benefício Variável Jovem) on the time allocation of youths and on the labor supply of their parents. A differences-in-differences intention to treat estimator was used to compare households among the poorest 20 per cent with 16 years old youths with households in the same income bracket with 15 years old adolescents before and after the expansion. The results show that granting the benefit had a positive and significant impact on school attendance, helping bridge 25% of the gap in school attendance between rich and poor households, and on the decision of young people to study and work at the same time. The effects on school attendance were stronger for males and when the child was the youngest in the household. No impacts were found on the parents’ labor supply.