"Do I want to ride my bicycle?" – an impact assessment of unconditional income transfer on the labor supply of couriers on delivery platforms

Abstract

The objective of this paper is to evaluate the impact of unconditional income transfer provided by the Auxílio Emergencial (AE) program on the labor supply of couriers that work on delivery platforms during the beginning of the covid-19 pandemic in Brazil. A panel database was created at an individual level to assess the impacts of AE on the labor supply of couriers on delivery platforms. The results indicate that the AE does not incentivize exit from this occupation but does marginally affect working hours, with the intensity being moderated by the per capita benefit amount. The estimates suggest that the program leads to a reduction of up to 16 monthly working hours. The income loss resulting from reduced working hours is lower than the average amount transferred to households.