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This paper contributes to the literature on welfare programs by using a quasiexperimental approach to estimate the impact of a Conditional Cash Transfer (CCT) on labor market outcomes in Brazil. Unlike other CCT programs that have been evaluated, Bolsa Família's is a widespread program that have taken place not only in rural and isolated areas, but also in large cities. Previous ndings have shown that this type of welfare benet does not reduce labor supply and then does not create program dependence. However, our hypothesis is that when the program goes from isolated areas to large cities and all population are informed about its rules, its impacts can dier. We nd that the benet actually increases the participation of households' additional workers in rural areas. On the other hand, it reduces the participation of households' main source of labor income in the formal sector in metropolitan areas. Thus the hypothesis that the program creates dependence cannot be rejected for the case of large cities.

Labor Supply; Labor Market; Conditional Cash Transfer Programs; Impact Evaluation; Brazil