Eligible and ineligible specification

ž Eligible: a head of household who earns up to five minimum wages and is regularly employed.

ž Ineligible: a head of household who earns more than five minimum wages and/or is employed in the informal labor market.

Problems of the specification chosen

ž Households whose head earns up to five minimum wages: it can include more than one beneficiary. Solution employed: use PNAD-FBS index in the eligible group.

ž Households whose head earns more than five minimum wages: the head of household is ineligible, but other eligible individuals can reside in the household. These were then disregarded.

Individuals who could receive the benefit in large group settings, but are not considered eligible (part of the ineligible group)

ž Individuals who earn over five minimum wages and are regularly employed.

ž Public servants.

Limitations of the data base

ž Distortions from using two different surveys (FBS and PNAD).

ž Does not capture changes in the pattern of individuals moving from the informal to the formal market.

ž Use of the social security contribution variable characterizing the formal market, due to the lack of information on regular employment in the FBS.