Description: Decomposing the Effects of CCTs on Entrepreneurship

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Decomposing the Effects of CCTs on Entrepreneurship

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...

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Bibliographic Details
Main Author:	Lichand, Guilherme
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTING AVERAGE HOUSEHOLD INCOME BANK POLICY BANKRUPTCY BENEFICIARY BENEFICIARY HOUSEHOLDS CASH TRANSFER CASH TRANSFER PROGRAMS CASH TRANSFERS CHILD LABOR COMPETITIVENESS CURRENT POVERTY DEVELOPING COUNTRIES DIVERSIFICATION ECONOMIC SHOCKS ECONOMICS EMPLOYMENT EXPORT GROWTH FINANCIAL MARKETS GLOBAL TRADE GLOBALIZATION GOVERNMENT SUPPORT GROWTH POLICY HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD SAVINGS HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME INCOME GROWTH INCOME-GENERATING ACTIVITIES INEQUALITY INSURANCE INVESTING LABOR SUPPLY LIVING STANDARDS LOCAL MARKETS MICROFINANCE MULTILATERAL TRADE MULTIPLIERS POOR POOR AREA POOR FAMILIES POOR HOUSEHOLDS POOR INDIVIDUALS PORTFOLIO POVERTY REDUCTION PRODUCTIVITY RETURN RISK AVERSE RURAL AREAS SAVINGS SCHOOL ATTENDANCE SELF-EMPLOYMENT SOCIAL CAPITAL SOCIAL PROTECTION TARGETING TRADE POLICY TRADING WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2010/11/13160163/decomposing-effects-conditional-cash-transfers-ccts-entrepreneurship http://hdl.handle.net/10986/10143

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Summary:	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.