Assessing the Impacts of Workforce Skill Improvement on Income Transfer Programme Beneficiaries in Brazil

This paper evaluates the economic impacts of a workforce qualification through professional courses for beneficiary families of Conditional Cash Transfer Program in Brazil using the DAYANE model, a computable, static, multiregional, and multisectoral computable general equilibrium model that presents Brazil divided into five macro-regions and families divided into ten income classes. It is developed in GEMPACK language and disaggregates families’ schooling into twelve different levels. Schooling improvement shocks were simulated for beneficiaries of the Bolsa Família Program, and the income transfers to these families decreased in proportion to the increase in wages. The results show that labour qualification policies for beneficiaries improve their economic situation, with income transfers being replaced by salary gains, which indicates that government transfers can cease in response to better gains in the labour market.