The relationship between income and living arrangements of elderly persons in Brazil: the impact of the Continuous Cash Benefit Transfer Program (BPC)

Abstract

This paper analyzes the impact of income for the elderly from the Continuous Cash Benefit Transfer Program (BPC) on the living arrangements of elderly poor persons. This benefit consists of income received monthly, equivalent to one minimum wage, by elderly persons over age 65 whose monthly per capita family income is below one-fourth of the minimum wage. This discussion is relevant in the current Brazilian context, which has been marked by rapid population aging, broad changes in living arrangements and an expansion of social security benefits for the elderly. Two hypothesis discussed in the literature were investigated, using the difference-in-difference statistical method and based on data from the 2002 and 2004 PNADs. It was seen that this unconditional income transfer would either (i) increase the probability of the elderly persons involved to live independently, or (ii) increase the probability of co-residence with family due to the attraction exerted by this additional income. The results obtained show that the receiving of the BPC income increases the probability that beneficiaries will tend to seek independents living arrangements.