Influence of the benefit of continuous provision on the poverty rate of the elderly in Minas Gerais municipalities in the period 2014-2017

Abstract

Poverty and aging in Brazil have been the subject of research in the field of Economics, since the existence of unprotected elderly people living in situations of poverty is a reality in the country. In this perspective, this work has as main objective to analyze the relationship between the transfers of the Continuous Payment Benefit (BPC) and the percentage of poor and extremely poor elderly people registered in the Single Registry. To analyze this relationship, data from the Minas Gerais Social Responsibility Index (IMRS) were used, considering the period from 2014 to 2017 for municipalities in the state of Minas Gerais. When estimating the econometric model with data in a dynamic panel, the research found evidence that the BPC contributes to the reduction of elderly poverty. The literature shows that the main mechanisms that explain this effect are related to the fact that the program deals with situations in which there is already established poverty and, therefore, works as a regular guarantee of income for the elderly and even their families.

Keywords: Benefício de Prestação Continuada. Elderly Poverty. Dynamic Panel.