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Event 2203 SS&H Andrews Conference Room

Unconditional Cash and Family Investments in Young Children: Evidence from a Monthly Cash Transfer Starting at Birth to U.S. Families with Low Income
Lisa A. Gennetian, Sanford School of Public Policy at Duke University

How does unconditional income for families in poverty affect parental investments for their young children? Mothers in four U.S. metropolitan areas were randomized to receive a monthly unconditional cash transfer of either $333/month (high) or $20/month (low) for the first several years after child birth. During the first three years, high-cash gift households spent more money on child-specific goods and more time on child-specific early learning activities than the low-cash gift group.