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The effect of child benefits on financial difficulties and spending habits: evidence from Poland’s Family 500 + program

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  • Stefani Milovanska-Farrington

    (The University of Tampa
    IZA Institute of Labor Economics)

Abstract

In response to the low fertility rate and high child poverty in Poland, the government implemented the Family 500 + program which provides cash transfers to families with two or more children, and low-income, one-child families. Using a difference-in-differences approach, we explore the causal effect of this policy on expenditure and financial difficulties of beneficiaries relative to non-eligible families. The findings suggest that after the introduction of the program, expenditures on food and cultural activities increased, and the likelihood of experiencing a hardship paying for utilities and medical care declined for the treatment relative to the control group. These results imply a beneficial effect of child benefits on tackling financial difficulties of families with children. From a policy perspective, the findings indicate that cash transfers can alleviate child poverty concerns and financial constraints to having children.

Suggested Citation

  • Stefani Milovanska-Farrington, 2022. "The effect of child benefits on financial difficulties and spending habits: evidence from Poland’s Family 500 + program," International Economics and Economic Policy, Springer, vol. 19(4), pages 719-739, October.
    • Handle: RePEc:kap:iecepo:v:19:y:2022:i:4:d:10.1007_s10368-022-00534-9
    DOI: 10.1007/s10368-022-00534-9
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    References listed on IDEAS

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    More about this item

    Keywords

    Cash benefits; Child allowance; Expenditures; Financial difficulties; Poverty;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D10 - Microeconomics - - Household Behavior - - - General
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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