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Baby Bonuses and Early-Life Health Outcomes: Using Regression Discontinuity to Evaluate the Causal Impact of an Unconditional Cash Transfer

Author

Listed:
  • Lynch, John

    (University of Adelaide)

  • Meunier, Aurélie
  • Pilkington, Rhiannon

    (University of Adelaide)

  • Schurer, Stefanie

    (University of Sydney)

Abstract

We use administrative data from South Australia to study the impact of an unconditional cash transfer on child health. We use the unanticipated introduction of the Australian Baby Bonus (ABB), a one-off payment of AU$3,000 (US$2,400) made to families with a newborn, to isolate its causal effect. The ABB reduces the number of potentially preventable hospitalizations and emergency department presentations for respiratory problems in the first year of life. Findings from survey data suggest that households spent the windfall income on electricity and private health insurance. There is no robust evidence that the ABB increased accidents or non-essential good consumption.

Suggested Citation

  • Lynch, John & Meunier, Aurélie & Pilkington, Rhiannon & Schurer, Stefanie, 2019. "Baby Bonuses and Early-Life Health Outcomes: Using Regression Discontinuity to Evaluate the Causal Impact of an Unconditional Cash Transfer," IZA Discussion Papers 12230, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12230
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    References listed on IDEAS

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    Cited by:

    1. Cristina Borra & Ana Costa-Ramón & Libertad González Luna & Almudena Sevilla, 2021. "The causal effect of an income shock on children’s human capital," Economics Working Papers 1789, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Mari, Gabriele & Keizer, Renske, 2021. "Do high-income households 'label' family cash transfers? Evidence on family expenditures from Australia," SocArXiv ucyzb, Center for Open Science.

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    More about this item

    Keywords

    unconditional cash transfers; baby bonus; child respiratory health; health care utilization; regression discontinuity design; natural experiment; linked administrative data;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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