Affiliation:
1. Federal University of Juiz de Fora Faculty of Economics Juiz de Fora Minas Gerais Brazil
2. São Paulo School of Economics, Fundação Getúlio Vargas (FGV) São Paulo Brazil
Abstract
AbstractThis paper evaluates the effects of a social fund that meets the needs of the poor in Northeast Brazil, the Fundos Estaduais de Combate e Erradicação da Pobreza (FECEP). The program could have improved infant health by reducing poverty and improving access to health care, sanitation, food, and housing. Using a difference‐in‐differences approach robust to heterogeneous treatment effects, we confirm that the program has effectively reduced poverty in treated areas. Furthermore, we document that this poverty reduction is associated with a significant decline in infant mortality. These findings provide consistent evidence that targeted public investments can improve living conditions in vulnerable regions.