Conditional Cash Transfers in Brazil, Chile, and Mexico: Impacts Upon Inequality

{
  "authors": [
    "Eduardo Zepeda",
    "Sergei Soares",
    "Rafael Guerreiro Osório",
    "Fábio Veras Soares",
    "Marcelo Medeiros"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "",
  "programs": [],
  "projects": [],
  "regions": [
    "North America",
    "South America"
  ],
  "topics": [
    "Economy"
  ]
}

In The Media

Conditional Cash Transfers in Brazil, Chile, and Mexico: Impacts Upon Inequality

Conditional Cash Tranfers have reduced inequality in three Latin American countries: Brazil, Mexico, and Chile. While they represent only a small share of total income, they have lead to a 21 percent drop in inequality in Brazil and Mexico, and to 15 percent reduction in Chile.

By Eduardo Zepeda, Sergei Soares, Rafael Guerreiro Osório, Fábio Veras Soares, Marcelo Medeiros

Published on Feb 1, 2009

Source: Estudios Economicos

In a new policy paper, Carnegie's Eduardo Zepeda and associates decompose changes in the Gini coefficient to investigate whether the Conditional Cash Tranfers (CCT) have had an inequality reducing effect in three Latin American countries: Brazil, Mexico and Chile. They conclude that CCT programs helped reducing inequality between the mid-1990s and the mid-2000s. The share of total income represented by the CCTs is very small, less than 1%. But as their targeting is outstanding, the equalizing impact of CCTs was responsible for about 21% of the fall in Brazilian and Mexican inequality figures. In Chile, the effect was responsible for around 15% of the reduction.

About the Authors

Eduardo Zepeda

Former Senior Associate, Trade, Equity and Development Program

Zepeda is inter-regional policy coordinator of the Development Policy and Analysis Division, Department of Economic and Social Affairs at the United Nations General Secretariat. He was previously a senior associate in the Trade, Equity, and Development Program at the Carnegie Endowment for International Peace.

Sergei Soares

Rafael Guerreiro Osório

International Policy Centre for Inclusive Growth

Fábio Veras Soares

International Policy Centre for Inclusive Growth

Marcelo Medeiros

Economy North America South America

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Endowment for International Peace

Commentary
Emissary
The Fallout of the U.S.–Canada Trade War Won’t Be Limited to North America
U.S. trading partners in Asia are closely watching the dispute for signs of how it may affect their own interests.
Barbara Weisel
Commentary
Emissary
The Two Key Takeaways From Xi’s Egypt Visit
Amid celebrations of bilateral ties was a deeper focus on stability in the Middle East.
Amr Hamzawy
Commentary
Emissary
Is the Shanghai Cooperation Organisation Performance Art or Meaningful Collaboration?
Xi, Putin, and other regional leaders are back-slapping in Bishkek, but the SCO has yet to answer the most serious questions about continental Asia's economic future.
Evan A. Feigenbaum
Commentary
Emissary
The Achilles’ Heel of the Shield of the Americas
By focusing only on hard security, the Shield ignores the conditions that fuel cartel power.
Alejandro Martin Rodriguez, Kayly Ober
Commentary
Emissary
The Iran War Has Sparked a Domestic Crisis in Kenya
The conflict has sent economic and political shock waves through a country with no representation at the negotiating table—and Kenya is not alone.
Georgia Schaefer-Brown, Jane Munga

More Work from Carnegie Endowment for International Peace

Aerial view of shipping containers at a port

Commentary

Emissary

The Fallout of the U.S.–Canada Trade War Won’t Be Limited to North America

U.S. trading partners in Asia are closely watching the dispute for signs of how it may affect their own interests.

Barbara Weisel

People dancing in the foreground, with a group of people in suites watching and an Air China plane in the background

Commentary

Emissary

The Two Key Takeaways From Xi’s Egypt Visit

Amid celebrations of bilateral ties was a deeper focus on stability in the Middle East.

Amr Hamzawy

upward-facing view of ornately tiled buildings

Commentary

Emissary

Is the Shanghai Cooperation Organisation Performance Art or Meaningful Collaboration?

Xi, Putin, and other regional leaders are back-slapping in Bishkek, but the SCO has yet to answer the most serious questions about continental Asia's economic future.

Evan A. Feigenbaum

Commentary

Emissary

The Achilles’ Heel of the Shield of the Americas

By focusing only on hard security, the Shield ignores the conditions that fuel cartel power.

Alejandro Martin Rodriguez, Kayly Ober

People gathered in a parking lot of buses

Commentary

Emissary

The Iran War Has Sparked a Domestic Crisis in Kenya

The conflict has sent economic and political shock waves through a country with no representation at the negotiating table—and Kenya is not alone.

Georgia Schaefer-Brown, Jane Munga