the number of individuals who declare to have received standard pensions is actually higher in PNADC than in administrative records. 24F<sup>25</sup> This suggests that some respondents are mistakenly reporting to have received pensions when they are actually BPC beneficiaries. We thus adjust the underdeclaration of BPC beneficiaries in PNAD-C by allocating some of the pensioniers to the BPC program. The reallocation is done from urban pensioners to either BPC or rural pensions by using a linear probability model that identifies the most likely low-asset individuals, which are arguably those who are more likely to be BPC beneficiaries and that reported to be pensioners. 25F<sup>26</sup>

- _Rural pension._ Rural pensions can be contributory but are treated as noncontributory because most of the beneficiaries are informal workers who have never paid social security contributions (in this case, only retired by age). Any man over 60 or woman over 55 with at least 180 months of rural activity is eligible for a rural pension by law. Unfortunately, rural pensions are not directly identifiable in PNAD-C 2019: the survey does not distinguish pensioners who receive their benefits through the rural pension program from those who contributed through their formal employment ( _aposentado urbano_ ). It also does not distinguish pensioners from their survivors ( _pensionista_ ). Given this data limitation, we impute the status of rural pension recipients using a realocation methodology from the broad pensioniers pool. In particular, we identify as rural pensioners men over 60 and women over 55 living in rural areas and whose declared pension value is smaller than 2.5 minimum wages in 2019. Survivor beneficiaries of rural pensioners, in turn, are identified as either: a) individuals living in a rural area who declared to receive a pension, and that did not fit the age criteria; or b) individuals living in a rural area who declared to receive a pension, fit the age criteria and whose pension value was higher than 1.5 minimum wages. 26F<sup>27</sup> All rural pension beneficiaries are assumed to receive a 13<sup>th</sup> salary.

**In-kind transfers.** The in-kind transfers included in the analysis provide a monetized estimation of the public services received by Brazilian families. There are two main transfers included in the study:

- _Education_ **_._** The in-kind transfers from access to public education were modeled based on the direct identification of beneficiaries, i.e., students enrolled in public education, and the imputation of the direct investment benefits based on INEP’s latest estimates (i.e., relative to the year 2018). The analysis covers (i) preschool, (ii) primary, (iii) secondary, (iv) tertiary, and (v) youth and adult education. For each of these levels, INEP publishes the average public expenditure per student. The identification of public education beneficiaries in each level is undertaken using PNAD-C data, as it contains specific variables that allows us to identify those who reported to be attending public schools (which is applicable only for individual aged 5 or more). 27F<sup>28</sup> Once the beneficiaries of each level are

> 25 This was the case in PNAD-C 2017 (World Bank, 2020) and also in PNAD-C 2019.

> 26 Other technical details can be found in World Bank (2020).

> 27 Using PNAD-C data for 2015, the last year where explicit questions about worker and survivor’s pensions were included in the survey, World Bank (2020) finds that approximately 95% of the individuals receiving pensions with values equivalent to about 2 minimum wages were receiving both a worker and a survivor’s pension. By focusing on thresholds equivalent to 1.5 and 2.5 minimum wages, we thus aim to maximize the likelihood of correctly identifying a rural pension beneficiary.

> 28 Information on daycare or preschool attendance for children 0-4 years old is not available in the PNADC. According to the Education Census 2019 (Brazil, 2020b) about 3.8 million children were enrolled in daycare facilities and about 81 percent enrolled in the public system or in ‘creches conveniadas’ (a public entity that receives a per student transfer from the municipal government) and about 5.2 million children ages 4 and 5 were enrolled in preschools (of which 74 percent were in public facilities). A back of the envelope calculation suggests that in 2019 about 5 million

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