Abstract: Brazil is a country of striking inequality. Higher education levels have been
identified as a crucial measure to break the poverty trap. In this paper the Brazilian
population sample PNAD2006 is used to carry out the method Propensity Score
Matching to estimate the effect of the Brazilian cash transfer Bolsa Família on school
attendance. The results show that the program has a positive, although limited, effect on
school attendance and that little would be achieved in terms of school attendance by
raising the handout for the whole eligible population. The quality of the results can
however be questioned, since all the properties of the method have not been fulfilled.