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Abstract

The objective of this study is to analyze the effect of social programs and cash transfer on the labor supply of non-farm family members, in poverty conditions, in rural areas of the Northeastern region, in Brazil. The hypothesis indicates that access to social programs and cash transfers may contribute to discourage the rural workers, in poverty, in their decision to participate and offer hours of work in non-agricultural activities. The methodology consisted on the use of models of Heckman (1979) and double hurdle, of Cragg (1971), which seek to associate the decision to participate in the labor market with the decision to allocate working hours. The database used was the National Survey by Household Sampling (PNAD), of 2006. Furthermore, the estimates for the parent and children showed that the programs have impacted negatively on the participation in non-agricultural activities. It has also been observed that the effects of Bolsa Família programs reduce the chance of teenagers’ participation in the non-agricultural activities, given that it is related to conditionality of school frequency.

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