Cash transfers to the elderly and its spillover effects : Evidences from a non-contributory program in Brazil

Purpose The purpose of this paper is to present evidences on the spillover effects of a cash transfer addressed to poor elders in Brazil. Design/methodology/approach Using the Brazilian National Households Survey (PNAD) the authors assess the effects of an income transfer to the elders on household composition and the labor supply of elders and co-residing relatives, under a regression discontinuity design. Findings The authors do not find strong evidences of changes in the household composition due to the program. However the authors found reductions in the elders’ labor force participation, indicating that the program allow elders to retire. Moreover, the transfer yields a decrease in the labor force participation of co-residents, depending on their age. The authors also observe decreases in child labor. Originality/value Along with the cash comes context-dependent effects, showing there are many latent aspects of these transfers yet to be uncovered.