URBAN POVERTY, CASH TRANSFERS AND REGIONAL DISPARITIES: an analysis for Argentina and Brazil (2011-2015)

Abstract

This paper examines the effects of conditional cash transfer programs in Argentina and Brazil on the existing regional disparities in urban poverty between 2011-2015, with northern regions in both countries being the poorest. The main CCT programs are Asignación Universal por Hijo in Argentina and Bolsa Familia in Brazil. Using microdata from Encuesta Permanente de Hogares for Argentina and Pesquisa Nacional por Amostra de Domicílios in the case of Brazil it is found that the absolute reductions in poverty associated to the CCTs are greater in the poorest regions in both countries. However, the poverty reductions in relative terms are greater in less poor regions in Brazil. In Argentina the poverty reduction in relative terms is the greatest in one of the two northern regions and the smallest in the other one, which is actually the poorest one. While greater relative reductions are expected in less poor regions, the result still suggests that the allocation of these fiscal instruments could be refined to better contribute to the reduction of regional disparities.

Keywords

• urban poverty
• regional disparities
• argentina
• bazil
• conditional cash transfers
• bolsa familia
• asignación universal por hijo