| Resumen: |
Weinvestigate the impact of a permanent unconditional cash transfer called “Citizen’s Basic Income” in the city of Maricá, Brazil. The program makes monthly transfers of USD 57 PPP on average to about a fourth of the city’s residents. The program is unique in that it is both unconditional and permanent, while existing programs typically only have one of these features. Between September 2021 and April 2022, we surveyed 5,182 individuals, about half of whom received the RBC. We use propensity score matching to create a matched comparison group and estimate the effect of the program on economic, social, and psychological outcomes. Our results reveal several positive welfare effects. Household income increased by 14%, with consumption rising similarly. We also observe improvements in children’s health and education, particularly among vulnerable households, such as those headed by women or racial minorities. There was a notable displacement of other income sources, particularly labor income, which decreased by 16% among recipients, suggesting shifts to lower-paying but potentially more desirable jobs during the pandemic. The program also led to increased access to financial services, but decreased the propensity to save. These findings highlight the socio-economic benefits of unconditional cash transfers and established cash transfer administrative systems. |
