Cavalcanti, Tiago; Corrêa, Márcio - In: Review of Development Economics 18 (2014) 4, pp. 741-762
This paper studies the effects of cash transfers to the poor on the labor market. This is investigated in a matching model with endogenous labor market participation and job destruction. Depending on their productivity, workers might want to stay in the job, become unemployed, or leave the labor...