Among new mothers who received an unconditional $333 per month, there was no decrease in employment, no increase in alcohol or tobacco use, more time spent in early-learning activities, and an increase in consumption of child-specific goods.

“Specifically, 1,000 racially and ethnically diverse mothers in four urban metropolitan areas in the United States were recruited in postpartum wards of hospitals shortly after giving birth…they were randomized to receive a monthly unconditional cash transfer of either $333 or $20 for the first several years of their child’s life…The high cash gift is financially significant, amounting to a 19 percent increase in income at the federal poverty level. The experiment was also designed to minimize the impact of the cash transfer on eligibility for other government support…”

empirical


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