IDEAS home Printed from https://ideas.repec.org/p/yor/hectdg/24-04.html

Cash Transfers and Health Outcomes: Evidence from Italian Municipalities

Author

Listed:
  • Fontana, S.;
  • Guccio, C.;
  • Pignataro, G.;
  • Romeo, D.;

Abstract

This paper aims to assess the impact of a cash transfer programme implemented in Italy since 2014, known as the "80 euro bonus", on health outcomes as gauged by mortality rates. Using municipality-level data over the period 2010-2019 and a difference-in-differences approach, we find a significant reduction in mortality rates associated with the size of cash transfers and the number of recipients in the municipality. This effect remains robust across several checks. Furthermore, at the provincial level, we observe sustained decreases in mortality rates, especially for cancer and cardiovascular diseases, in the areas with a higher concentration of cash transfer recipients. These results support the positive impact of increased financial resources on health outcomes and highlight the role of cash transfers as effective tools for public health policies.

Suggested Citation

  • Fontana, S.; & Guccio, C.; & Pignataro, G.; & Romeo, D.;, 2024. "Cash Transfers and Health Outcomes: Evidence from Italian Municipalities," Health, Econometrics and Data Group (HEDG) Working Papers 24/04, HEDG, c/o Department of Economics, University of York.
    • Handle: RePEc:yor:hectdg:24/04
    as

    Download full text from publisher

    File URL: https://www.york.ac.uk/media/economics/documents/hedg/workingpapers/2024/2404.pdf
    File Function: Main text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Brydon, Robbie & Haseeb, Saud Bin & Park, Gum-Ryeong & Ziegler, Carolyn & Hwang, Stephen W. & Forget, Evelyn L. & Persaud, Navindra & Siddiqi, Arjumand & Dunn, James R., 2024. "The effect of cash transfers on health in high-income countries: A scoping review," Social Science & Medicine, Elsevier, vol. 362(C).
    2. Paolo Di Caro, 2018. "Redistribution in real-world PIT: Evidence from Italian tax records," Working Papers wp2018-2, Ministry of Economy and Finance, Department of Finance.
    3. Amy Finkelstein & Matthew J. Notowidigdo & Frank Schilbach & Jonathan Zhang, 2024. "Lives vs. Livelihoods: The Impact of the Great Recession on Mortality and Welfare," NBER Working Papers 32110, National Bureau of Economic Research, Inc.
    4. Thiemo Fetzer, 2019. "Did Austerity Cause Brexit?," American Economic Review, American Economic Association, vol. 109(11), pages 3849-3886, November.
    5. Cirulli, Vanessa & Marini, Giorgia, 2023. "Are austerity measures really distressing? Evidence from Italy," Economics & Human Biology, Elsevier, vol. 49(C).
    6. Zachary Liscow & Abigail Pershing, 2022. "Why Is So Much Redistribution In-Kind and Not in Cash? Evidence from a Survey Experiment," National Tax Journal, University of Chicago Press, vol. 75(2), pages 313-354.
    7. María Cervini-Plá & Judit Vall-Castelló, 2021. "Business cycle and mortality in Spain," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(8), pages 1289-1299, November.
    8. Luca Villamaina & Paolo Acciari, 2023. "Taxation and labour supply decisions: an evaluation of the earned income tax credit in Italy," Working Papers wp2023-20, Ministry of Economy and Finance, Department of Finance.
    9. Andrea Neri & Concetta Rondinelli & Filippo Scoccianti, 2017. "Household spending out of a tax rebate: Italian ��80 tax bonus�," Questioni di Economia e Finanza (Occasional Papers) 379, Bank of Italy, Economic Research and International Relations Area.
    10. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," ILR Review, Cornell University, ILR School, vol. 46(1), pages 22-37, October.
    11. Ruhm, Christopher J. & Black, William E., 2002. "Does drinking really decrease in bad times?," Journal of Health Economics, Elsevier, vol. 21(4), pages 659-678, July.
    12. Porterfield, S.L. & McBride, T.D., 2007. "The effect of poverty and caregiver education on perceived need and access to health services among children with special health care needs," American Journal of Public Health, American Public Health Association, vol. 97(2), pages 323-329.
    13. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 617-650.
    14. Anuj Gangopadhyaya & Fredric Blavin & Breno Braga & Jason Gates, 2020. "Credit where it is due: Investigating pathways from earned income tax credit expansion to maternal mental health," Health Economics, John Wiley & Sons, Ltd., vol. 29(9), pages 975-991, September.
    15. Jesse M. Cunha, 2014. "Testing Paternalism: Cash versus In-Kind Transfers," American Economic Journal: Applied Economics, American Economic Association, vol. 6(2), pages 195-230, April.
    16. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769, December.
    17. Neri, Andrea & Rondinelli, Concetta & Scoccianti, Filippo, 2017. "Household spending out of a tax rebate: Italian “€80 tax bonus”," Working Paper Series 2099, European Central Bank.
    18. Depalo, Domenico, 2019. "The side effects on health of a recovery plan in Italy: A nonparametric bounding approach," Regional Science and Urban Economics, Elsevier, vol. 78(C).
    19. David Cutler & Angus Deaton & Adriana Lleras-Muney, 2006. "The Determinants of Mortality," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 97-120, Summer.
    20. Micheal Kofi Boachie & K. Ramu & Tatjana Põlajeva, 2018. "Public Health Expenditures and Health Outcomes: New Evidence from Ghana," Economies, MDPI, vol. 6(4), pages 1-25, October.
    21. Ebenezer Owusu-Addo & Ruth Cross, 2014. "The impact of conditional cash transfers on child health in low- and middle-income countries: a systematic review," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 59(4), pages 609-618, August.
    22. van den Berg, Gerard J. & Gerdtham, Ulf-G. & von Hinke, Stephanie & Lindeboom, Maarten & Lissdaniels, Johannes & Sundquist, Jan & Sundquist, Kristina, 2017. "Mortality and the business cycle: Evidence from individual and aggregated data," Journal of Health Economics, Elsevier, vol. 56(C), pages 61-70.
    23. Janet Currie & Firouz Gahvari, 2008. "Transfers in Cash and In-Kind: Theory Meets the Data," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 333-383, June.
    24. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    25. Giuseppe Moscelli & Hugh Gravelle & Luigi Siciliani, 2021. "Hospital competition and quality for non‐emergency patients in the English NHS," RAND Journal of Economics, RAND Corporation, vol. 52(2), pages 382-414, June.
    26. Cooper, Jan E. & Benmarhnia, Tarik & Koski, Alissa & King, Nicholas B., 2020. "Cash transfer programs have differential effects on health: A review of the literature from low and middle-income countries," Social Science & Medicine, Elsevier, vol. 247(C).
    27. Riccardo Lucchetti & Luca Pedini & Claudia Pigini, 2021. "Bayesian Model Averaging For Propensity Score Matching In Tax Rebate," Working Papers 457, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    28. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," Working Papers 680, Princeton University, Department of Economics, Industrial Relations Section..
    29. Garth Heutel & Christopher J. Ruhm, 2016. "Air Pollution and Procyclical Mortality," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(3), pages 667-706.
    30. Aaron Richterman & Christophe Millien & Elizabeth F. Bair & Gregory Jerome & Jean Christophe Dimitri Suffrin & Jere R. Behrman & Harsha Thirumurthy, 2023. "The effects of cash transfers on adult and child mortality in low- and middle-income countries," Nature, Nature, vol. 618(7965), pages 575-582, June.
    31. Barham, Tania, 2011. "A healthier start: The effect of conditional cash transfers on neonatal and infant mortality in rural Mexico," Journal of Development Economics, Elsevier, vol. 94(1), pages 74-85, January.
    32. Giambattista Salinari & Federico Benassi & Gianni Carboni, 2023. "The Effect of the Great Recession on Italian Life Expectancy," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(1), pages 1-15, February.
    33. Brambor, Thomas & Clark, William Roberts & Golder, Matt, 2006. "Understanding Interaction Models: Improving Empirical Analyses," Political Analysis, Cambridge University Press, vol. 14(1), pages 63-82, January.
    34. Emanuele Arcà & Francesco Principe & Eddy Van Doorslaer, 2020. "Death by austerity? The impact of cost containment on avoidable mortality in Italy," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1500-1516, December.
    35. Ruhm, Christopher J., 2005. "Healthy living in hard times," Journal of Health Economics, Elsevier, vol. 24(2), pages 341-363, March.
    36. Andini, Monica & Ciani, Emanuele & de Blasio, Guido & D'Ignazio, Alessio & Salvestrini, Viola, 2018. "Targeting with machine learning: An application to a tax rebate program in Italy," Journal of Economic Behavior & Organization, Elsevier, vol. 156(C), pages 86-102.
    37. Brown, Timothy Tyler, 2014. "How effective are public health departments at preventing mortality?," Economics & Human Biology, Elsevier, vol. 13(C), pages 34-45.
    38. Guanais, F.C., 2015. "The combined effects of the expansion of primary health care and conditional cash transfers on infant mortality in Brazil, 1998-2010," American Journal of Public Health, American Public Health Association, vol. 105, pages 593-9,585-9.
    39. repec:fth:prinin:300 is not listed on IDEAS
    40. Haaland, Venke Furre & Telle, Kjetil, 2015. "Pro-cyclical mortality across socioeconomic groups and health status," Journal of Health Economics, Elsevier, vol. 39(C), pages 248-258.
    41. Blakely, Tony & Wilson, Nick, 2006. "Shifting dollars, saving lives: What might happen to mortality rates, and socio-economic inequalities in mortality rates, if income was redistributed?," Social Science & Medicine, Elsevier, vol. 62(8), pages 2024-2034, April.
    42. Barham, Tania & Rowberry, Jacob, 2013. "Living longer: The effect of the Mexican conditional cash transfer program on elderly mortality," Journal of Development Economics, Elsevier, vol. 105(C), pages 226-236.
    43. Otto Lenhart, 2019. "The effects of income on health: new evidence from the Earned Income Tax Credit," Review of Economics of the Household, Springer, vol. 17(2), pages 377-410, June.
    44. Bray, Kerry & Braakmann, Nils & Wildman, John, 2024. "Austerity, welfare cuts and hate crime: Evidence from the UK's age of austerity," Journal of Urban Economics, Elsevier, vol. 141(C).
    45. Ruhm, Christopher J., 2015. "Recessions, healthy no more?," Journal of Health Economics, Elsevier, vol. 42(C), pages 17-28.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guccio, C. & Pignataro, G. & Vidoli, F., 2024. "It never rains but it pours: Austerity and mortality rate in peripheral areas," Economics & Human Biology, Elsevier, vol. 54(C).
    2. Sun, Zhen & Cheng, Lei, 2021. "Air pollution and procyclical mortality: Evidence from China," China Economic Review, Elsevier, vol. 68(C).
    3. Ariadna Jou & Tommy Morgan, 2025. "Do Relief Programs Compensate For Longevity Losses From Reccesions? Evidence From The Great Depression And The New Deal," Working Papers wp562, University of Chile, Department of Economics.
    4. Propper, Carol & Janke, Katharina & Lee, Kevin & Shields, Kalvinder & Shields, Michael A, 2020. "Macroeconomic Conditions and Health in Britain: Aggregation, Dynamics and Local Area Heterogeneity," CEPR Discussion Papers 14507, C.E.P.R. Discussion Papers.
    5. Chad Cotti & David Simon, 2018. "The Impact Of Stock Market Fluctuations On The Mental And Physical Well‐Being Of Children," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 1007-1027, April.
    6. Haji Mohammad Neshat Ghojagh & Lotfali Agheli & Sajjad Faraji Dizaji & Mohammad Javad Kabir & Vahid Taghvaee, 2024. "Economic instability, income, and unemployment effects on mortality: using SUR panel data in Iran," International Journal of Health Economics and Management, Springer, vol. 24(4), pages 555-570, December.
    7. Janke, Katharina & Lee, Kevin & Propper, Carol & Shields, Kalvinder & Shields, Michael A., 2023. "Economic conditions and health: Local effects, national effect and local area heterogeneity," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 801-828.
    8. Fernández Guerrico, Sofía, 2021. "The effects of trade-induced worker displacement on health and mortality in Mexico," Journal of Health Economics, Elsevier, vol. 80(C).
    9. Sergi Jiménez-Martín & Arnau Juanmarti Mestres & Judit Vall Castelló, 2019. "Great Recession and disability insurance in Spain," Empirical Economics, Springer, vol. 56(5), pages 1623-1645, May.
    10. Max Brüning & Josselin Thuilliez, 2019. "Mortality and Macroeconomic Conditions: What Can We Learn From France?," Demography, Springer;Population Association of America (PAA), vol. 56(5), pages 1747-1764, October.
    11. Huang, Wei & Lei, Xiaoyan & Yu, Miao, 2024. "Economic policy uncertainty, health status, and mortality," Social Science & Medicine, Elsevier, vol. 362(C).
    12. Venke Furre Haaland & Kjetil Telle, 2013. "Pro-cyclical mortality. Evidence from Norway," Discussion Papers 766, Statistics Norway, Research Department.
    13. Ólafsdóttir, Thorhildur & Hrafnkelsson, Birgir & Thorgeirsson, Gudmundur & Ásgeirsdóttir, Tinna Laufey, 2016. "The tax-free year in Iceland: A natural experiment to explore the impact of a short-term increase in labor supply on the risk of heart attacks," Journal of Health Economics, Elsevier, vol. 49(C), pages 14-27.
    14. Jofre-Bonet, M. & Serra-Sastre, V. & Vandoros, S., 2016. "Better Health in Times of Hardship?," Working Papers 16/09, Department of Economics, City St George's, University of London.
    15. Birgisdóttir, Kristín Helga & Hauksdóttir, Arna & Ruhm, Christopher & Valdimarsdóttir, Unnur Anna & Ásgeirsdóttir, Tinna Laufey, 2020. "The effect of the economic collapse in Iceland on the probability of cardiovascular events," Economics & Human Biology, Elsevier, vol. 37(C).
    16. Giri, Jeeten Krishna & Kumaresan, Talitha, 2021. "The business cycle, health behavior, and chronic disease: A study over Three decades," Economics & Human Biology, Elsevier, vol. 43(C).
    17. van den Berg, Gerard J. & Paul, Alexander & Reinhold, Steffen, 2020. "Economic conditions and the health of newborns: Evidence from comprehensive register data," Labour Economics, Elsevier, vol. 63(C).
    18. Clifford Afoakwah & Son Nghiem & Paul Scuffham & Joshua Byrnes, 2021. "Rising unemployment reduces the demand for healthcare services among people with cardiovascular disease: an Australian cohort study," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(4), pages 643-658, June.
    19. Ruhm, Christopher J., 2015. "Recessions, healthy no more?," Journal of Health Economics, Elsevier, vol. 42(C), pages 17-28.
    20. José A. Tapia Granados & Edward L. Ionides, 2017. "Population health and the economy: Mortality and the Great Recession in Europe," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 219-235, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:yor:hectdg:24/04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jane Rawlings (email available below). General contact details of provider: https://edirc.repec.org/data/deyoruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.