SOCIAL FUND AND CHILD MORTALITY: EVIDENCE OF A POLICY TO FIGHT POVERTY IN NORTHEASTERN BRAZIL
Funds to Combat Poverty. Children’s Health. Child Mortality. Poverty. Northeast of Brazil.
The objective of this dissertation is to study the effects of the constitution of State Funds for Combating and Eradicating Poverty (FECEP) in the Northeast of Brazil, therefore, the reduction of poverty levels on infant mortality. To assess the effects of the policy sanctioned by the federal government in 2000 on child health, the impacts of the creation of social funds on infant, neonatal, post-neonatal and avoidable mortality rates in the Northeastern states were examined. In addition, the effects of the intervention on health conditions at birth and channels of poverty generation associated with infant mortality were verified.Using an empirical differences-in-differences strategy for the period 1996- 2015, robust for various periods and heterogeneous treatment, this research shows that the northeastern states that implemented social funds to combat misery experienced a significant reduction in both poverty levels and in the rates of infant mortality.The set of results provides suggestive evidence that the creation of social financing mechanisms, irrigated financially by the collection of taxes on luxury consumption, such as FECEP, can seriously help to reduce misery and, thereby, the infant mortality rates, thus translating into an important instrument of economic and social transformation for underdeveloped regions.