# **4 Data and descriptive statistics: Bolsa Fam ́ılia and POF**

## **4.1 Bolsa Fam ́ılia Program**

The Bolsa Fam ́ılia Program<sup>44</sup> (BFP) officially started in October 2003 and is regulated by a federal law since 9<sup>_th_</sup> of January of 2004.<sup>45</sup> This law determines its eligibility rules, amount of transfer and other operational details.<sup>46</sup> The program resulted from an attempt to unify previous programs that were already in place on the federal level since 2001.<sup>47</sup> Among these programs, ‘Bolsa Escola’, a cash transfer conditional on school attendance, was closest in design to BFP. Lindert et al. [2007] and Soares [2012] provide a chronological review of social protection mechanisms in Brazil and detailed information about how BFP works.

The program consists of a cash transfer provided by the federal government to households with an income per capita below the poverty line. Eligibility is based on a combination of criteria including monthly income per household member, which may not exceed R$ 120<sup>48</sup> , and the number of children in specific age brackets which are part of the household.<sup>49</sup> Households with an income per capita below the cut-off point receive an additional R$ 20 for each child up to 15 years of age and an additional R$ 30 for each child of 16 to 17 years of age. The amount of transfer is capped at three children<sup>50</sup> up to the age of 15 and two teenagers, families with more children do not receive more transfers. Households with a per capita income of less than R$ 60 qualify for the base transfer even if they do not have children.<sup>51</sup> To receive the transfer, beneficiary households are required to comply with the following conditionalities with respect to health and education.

- Health: a) immunization cards of children under seven years of age are up to date; b) Health service check ups for children under seven years of age; c) health service check ups for women aged 14 to 44 years and, if pregnant or lactating (breastfeeding) should carry out pre- and postnatal check-ups.

> 44‘Medida Provis ́oria’, n.132, October 20, 2003.

> 45Law n. 10,836, January 09, 2004.

> 46See section 8.1 for further details.

> 47‘Bolsa Escola’ (11 April 2001); National Program for Food Access PNAA (13 of June 13 2003); Bolsa Alimentacao’ / Food Stamp ( 6 September 2001); ‘Programa Aux ́ılio-G ́as’/Gas stamp (24 January 2002) and the Federal Government Unified Registration (24 July 2001),

> 48The average exchange rate between 2007 and 2008 of US Dollar against Real was about US$ 1.00 = R$ 1.90.

> 49These values correspond to the period in which POF 2008-2009 survey was conducted. The current values are R$ 140 and R$ 70 for the poverty line and extreme poverty line respectively. Updated information on current values is available on the website of the Brazilian Ministry of Social Development (www.mds.gov.br).

> 50This cap on benefits was changed to 5 children by Law n. 12.512 of 2011.

> 51We are following the eligibility rule according to Brazilian Decree-Law n. 5,749 from 11 April 2006, law n. 11,692 from 10 June 2008 and the Decree-Law n. 6,491 from 26 June 2008. These rules were in vigor in the period of the survey and a summary of them are available on 8.1. The current values of eligibility and cash transfer are available on www.planalto.gov.br.

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