Notes on Bolsa Família expansion, employment, and poverty eradication as a national goal

Abstract

The expansion of both the number of beneficiaries (horizontal expansion) and average value of benefits (vertical expansion) of Brazil’s means-tested cash transfer programme(s) during and after the COVID-19 pandemic brought renewed attention not only to the decline in poverty but also to concerns that such benefits might discourage work and harm the economy. This Policy Research Brief compiles information and arguments for the discussion, taking into account Brazil’s constitutional goal of eradicating poverty and reducing inequalities. From 2019 to 2023, concomitant with an increase in the number of Bolsa Família beneficiaries, the country also experienced a significant increase in the proportion of formally employed individuals, especially among the poorest households.