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Does Unconditional Cash during Pregnancy Affect Infant Health?

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  • Krista Ruffini

Abstract

This paper examines how cash transfers that are not conditional on employment affect infant health. Leveraging variation in the amount of pandemic-era stimulus and child tax credit payments that families received based on household composition, I find that an additional $100 in transfers reduces the prevalence of low birthweight by 2-3 percent. Effects are larger for payments received later in pregnancy, but are of a similar magnitude across the population. These additional resources increased prenatal care and improved maternal health in ways that are consistent with families both increasing investments in children's health and improving the prenatal environment.

Suggested Citation

  • Krista Ruffini, 2023. "Does Unconditional Cash during Pregnancy Affect Infant Health?," Opportunity and Inclusive Growth Institute Working Papers 072, Federal Reserve Bank of Minneapolis.
    • Handle: RePEc:fip:fedmoi:96191
    DOI: 10.21034/iwp.72
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    More about this item

    Keywords

    Infant health; Tax policy; Cash transfers;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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