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The Long-Run Impact of Cash Transfers to Poor Families

Author

Listed:
  • Anna Aizer
  • Shari Eli
  • Joseph Ferrie
  • Adriana Lleras-Muney

Abstract

We estimate the long-run impact of cash transfers to poor families on children's longevity, educational attainment, nutritional status, and income in adulthood. To do so, we collected individual- level administrative records of applicants to the Mothers' Pension program -- the first government-sponsored welfare program in the United States (1911-1935) -- and matched them to census, WWII, and death records. Male children of accepted applicants lived one year longer than those of rejected mothers. They also obtained one-third more years of schooling, were less likely to be underweight, and had higher income in adulthood than children of rejected mothers. (JEL I12, I14, I18, I32, I38, J16, N32)

Suggested Citation

  • Anna Aizer & Shari Eli & Joseph Ferrie & Adriana Lleras-Muney, 2016. "The Long-Run Impact of Cash Transfers to Poor Families," American Economic Review, American Economic Association, vol. 106(4), pages 935-971, April.
  • Handle: RePEc:aea:aecrev:v:106:y:2016:i:4:p:935-71
    Note: DOI: 10.1257/aer.20140529
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    Citations

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    Cited by:

    1. Lazuka, Volha, 2017. "Infant health and later-life labour market outcomes : Evidence from the introduction of sulfa antibiotics in Sweden," Lund Papers in Economic History 154, Lund University, Department of Economic History.
    2. Sebastian Martinez & Pablo Celhay & Cecilia Vidal & Julia Johannsen, 2017. "Paying Patients for Prenatal Care: The Effect of a Small Cash Transfer on Stillbirths and Survival," IDB Publications (Working Papers) 8475, Inter-American Development Bank.
    3. Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2018. "Safety Net Investments in Children," NBER Working Papers 24594, National Bureau of Economic Research, Inc.
    4. Chen, Xi & Zhang, Xiaobo, 2017. "Costly Posturing: Ceremonies and Early Child Development in China," IZA Discussion Papers 10662, Institute for the Study of Labor (IZA).
    5. Ioana Marinescu, 2018. "No Strings Attached: The Behavioral Effects of U.S. Unconditional Cash Transfer Programs," NBER Working Papers 24337, National Bureau of Economic Research, Inc.
    6. George Bulman & Robert Fairlie & Sarena Goodman & Adam Isen, 2016. "Parental Resources and College Attendance: Evidence from Lottery Wins," Working Papers id:11371, eSocialSciences.
    7. Gupta, Prachi & Huang, Bihong, 2018. "In-Kind Transfer and Child Development: Evidence from Subsidized Rice Program in Indonesia," ADBI Working Papers 826, Asian Development Bank Institute.
    8. Hilary Hoynes & Diane Whitmore Schanzenbach & Douglas Almond, 2016. "Long-Run Impacts of Childhood Access to the Safety Net," American Economic Review, American Economic Association, vol. 106(4), pages 903-934, April.
    9. David M. Cutler & Wei Huang & Adriana Lleras-Muney, 2016. "Economic Conditions and Mortality: Evidence from 200 Years of Data," NBER Working Papers 22690, National Bureau of Economic Research, Inc.
    10. Paredes-Torres, Tatiana, 2017. "The impact of exposure to cash transfers on education and labor market outcomes," MPRA Paper 79008, University Library of Munich, Germany.
    11. Alex-Petersen, Jesper & Lundborg, Petter & Rooth, Dan-Olof, 2017. "Long-Term Effects of Childhood Nutrition: Evidence from a School Lunch Reform," IZA Discussion Papers 11234, Institute for the Study of Labor (IZA).
    12. Bellani, Luna & Bia, Michela, 2017. "The Long-Run Impact of Childhood Poverty and the Mediating Role of Education," IZA Discussion Papers 10677, Institute for the Study of Labor (IZA).
    13. Kerris Cooper & Kitty Stewart, 2017. "Does Money Affect Children’s Outcomes? An update," CASE Papers /203, Centre for Analysis of Social Exclusion, LSE.

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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