Abstract This study examines causal impacts of unconditional cash transfers on economic hardship and key family processes that may affect children’s development. The study randomized 1000 mothers of newborns, with prior-year household income below the federal poverty threshold, to receive unconditional cash transfers of 333 or 20 per month (Clinical Trial Registry number NCT03593356). Data collected approximately 12, 24 and 36 months after the child’s birth show a moderate increase in household income and reductions in poverty; no statistically significant improvements in subjective economic hardship reports or quality of play with infants; and small, mostly statistically non-significant, increases in parental psychological distress and declines in mothers’ relationship quality. However, mothers receiving the higher amount reported more frequently engaging in enriching child activities than mothers receiving the lower amount. Cash support may provide other benefits for families and children, but moderate support levels do not appear to address self-reported economic hardship or standard survey measures of maternal well-being. However, these results do not rule out the possibility of very small effects.
Magnuson et al. (Wed,) studied this question.