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Does Income Affect Health? Evidence from a Randomized Controlled Trial of a Guaranteed Income

Author

Listed:
  • Sarah Miller
  • Elizabeth Rhodes
  • Alexander W. Bartik
  • David E. Broockman
  • Patrick K. Krause
  • Eva Vivalt

Abstract

We study a randomized trial in which 1,000 low-income U.S. adults age 21 to 40 received $1,000 per month for three years, from November 2020 until October 2023, while 2,000 control participants received $50 monthly over that same period. The transfer produced large but short-lived improvements in stress and food security and increased hospital, emergency department, and dental care use. However, it did not improve self-reported physical health, clinical biomarkers, or mental health after the first year, and we can rule out small effects on many outcomes. We also find no effects on the health of children in participants’ households.

Suggested Citation

  • Sarah Miller & Elizabeth Rhodes & Alexander W. Bartik & David E. Broockman & Patrick K. Krause & Eva Vivalt, 2024. "Does Income Affect Health? Evidence from a Randomized Controlled Trial of a Guaranteed Income," NBER Working Papers 32711, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:32711
    Note: EH PE
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    Citations

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    Cited by:

    1. Gibson, Laura A. & Richterman, Aaron & Randall, Aaliyah & Muruako, Jonathan & Uzwiak, Beth & Fabian, Eva & Thirumurthy, Harsha & Roberto, Christina A., 2026. "Unconditional cash transfers to improve health behaviors among primary care patients: a qualitative sub-study of a randomized clinical trial," Social Science & Medicine, Elsevier, vol. 395(C).
    2. Patrick K. Krause & Elizabeth Rhodes & Sarah Miller & Alexander W. Bartik & David E. Broockman & Eva Vivalt, 2025. "The Impact of Unconditional Cash Transfers on Parenting and Children," NBER Working Papers 34040, National Bureau of Economic Research, Inc.
    3. Sandra Bohmann & Susann Fiedler & Maximilian Kasy & Jürgen Schupp & Frederik Schwerter, 2025. "Cash Transfers, Mental Health and Agency: Evidence from an RCT in Germany," Discussion Papers of DIW Berlin 2129, DIW Berlin, German Institute for Economic Research.
    4. Simonsen, Marianne & Skipper, Lars & Smith, Jeffrey, 2026. "Welfare Reform: Consequences for the Children," IZA Discussion Papers 18739, IZA Network @ LISER.
    5. Amy Finkelstein & Matthew J. Notowidigdo & Steven Shi, 2026. "Trading Goods for Lives: NAFTA’s Mortality Impacts and Implications," Working Papers 2026-33, Becker Friedman Institute for Research In Economics.
    6. repec:ces:ceswps:_11989 is not listed on IDEAS

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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