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The Impact of Cash after Childbirth on Crime: Evidence from a Discontinuity in Tax Benefits

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  • Sakshi Bhardwaj

Abstract

This paper examines the causal impact of additional income provided to low-income families shortly after childbirth on mothers' criminal justice involvement. Using a regression discontinuity design based on year-end births, where children born before December 31 generate larger cash transfers in the form of refundable tax credits for families compared to January-born children, I analyze linked administrative data from a large US metropolitan county. I find that eligibility for additional income during the first year of childbirth does not significantly impact mothers' criminal activity in the immediate years following childbirth but significantly reduces long-term criminal justice involvement among mothers.

Suggested Citation

  • Sakshi Bhardwaj, 2025. "The Impact of Cash after Childbirth on Crime: Evidence from a Discontinuity in Tax Benefits," AEA Papers and Proceedings, American Economic Association, vol. 115, pages 292-296, May.
    • Handle: RePEc:aea:apandp:v:115:y:2025:p:292-96
    DOI: 10.1257/pandp.20251128
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    More about this item

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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