IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/27523.html
   My bibliography  Save this paper

The Incentive Effects of Cash Transfers to the Poor

Author

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

Abstract

All redistributive and social insurance programs trade off the potential benefits of transfers with the disincentives these programs generate. We investigate this trade-off using newly collected lifetime data for 16,000 women who applied to the Mothers’ Pension Program, the first cash transfer program in the US. In the short-run cash transfers reduced geographic mobility and delayed marriage of recipients but did not affect who they married or where they moved to. In the long run transfers had no effect on work, marriage or fertility behaviors. They also did not improve the economic conditions of recipients or their longevity.

Suggested Citation

  • Anna Aizer & Shari Eli & Adriana Lleras-Muney, 2020. "The Incentive Effects of Cash Transfers to the Poor," NBER Working Papers 27523, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:27523
    Note: AG CH DAE EH LS PE
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w27523.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mark R. Rosenzweig & Junsen Zhang, 2009. "Do Population Control Policies Induce More Human Capital Investment? Twins, Birth Weight and China's "One-Child" Policy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 1149-1174.
    2. repec:pri:cheawb:case_paxson_economic_status_paper is not listed on IDEAS
    3. J. J. McCall, 1970. "Economics of Information and Job Search," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(1), pages 113-126.
    4. Cheryl Doss, 2013. "Intrahousehold Bargaining and Resource Allocation in Developing Countries-super-1," The World Bank Research Observer, World Bank, vol. 28(1), pages 52-78, February.
    5. Jeff Grogger & Stephen G. Bronars, 2001. "The Effect of Welfare Payments on the Marriage and Fertility Behavior of Unwed Mothers: Results from a Twins Experiment," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 529-545, June.
    6. 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.
    7. Goldin, Claudia, 2006. "The Quiet Revolution That Transformed Women’s Employment, Education, and Family," Scholarly Articles 2943933, Harvard University Department of Economics.
    8. David S. Lee, 2009. "Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 1071-1102.
    9. Marianne Bitler & Jonah Gelbach & Hilary Hoynes & Madeline Zavodny, 2004. "The impact of welfare reform on marriage and divorce," Demography, Springer;Population Association of America (PAA), vol. 41(2), pages 213-236, May.
    10. Mark Hayward & Bridget Gorman, 2004. "The long arm of childhood: The influence of early-life social conditions on men’s mortality," Demography, Springer;Population Association of America (PAA), vol. 41(1), pages 87-107, February.
    11. Marianne Bitler & Jonah Gelbach & Hilary Hoynes & Madeline Zavodny, 2004. "The impact of welfare reform on marriage and divorce," Demography, Springer;Population Association of America (PAA), vol. 41(2), pages 213-236, May.
    12. Eli, Shari & Salisbury, Laura, 2016. "Patronage Politics and the Development of the Welfare State: Confederate Pensions in the American South," The Journal of Economic History, Cambridge University Press, vol. 76(4), pages 1078-1112, December.
    13. Doss, Cheryl, 2013. "Intrahousehold bargaining and resource allocation in developing countries," Policy Research Working Paper Series 6337, The World Bank.
    14. Claudia Goldin, 2006. "The Quiet Revolution That Transformed Women's Employment, Education, and Family," American Economic Review, American Economic Association, vol. 96(2), pages 1-21, May.
    15. Ran Abramitzky & Leah Boustan & Katherine Eriksson & James Feigenbaum & Santiago Pérez, 2021. "Automated Linking of Historical Data," Journal of Economic Literature, American Economic Association, vol. 59(3), pages 865-918, September.
    16. Melissa Schettini Kearney, 2004. "Is There an Effect of Incremental Welfare Benefits on Fertility Behavior?: A Look at the Family Cap," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    17. Ran Abramitzky & Leah Platt Boustan & Katherine Eriksson, 2014. "A Nation of Immigrants: Assimilation and Economic Outcomes in the Age of Mass Migration," Journal of Political Economy, University of Chicago Press, vol. 122(3), pages 467-506.
    18. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December.
    19. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.
    20. André Grow & Jan Van Bavel, 2015. "Assortative Mating and the Reversal of Gender Inequality in Education in Europe: An Agent-Based Model," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-24, June.
    21. Martha J. Bailey & Connor Cole & Morgan Henderson & Catherine Massey, 2020. "How Well Do Automated Linking Methods Perform? Lessons from US Historical Data," Journal of Economic Literature, American Economic Association, vol. 58(4), pages 997-1044, December.
    22. Shelly Lundberg & Robert A. Pollak & Jenna Stearns, 2016. "Family Inequality: Diverging Patterns in Marriage, Cohabitation, and Childbearing," Journal of Economic Perspectives, American Economic Association, vol. 30(2), pages 79-102, Spring.
    23. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1553-1623.
    24. Douglas Almond & Janet Currie, 2011. "Killing Me Softly: The Fetal Origins Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 153-172, Summer.
    25. Wang-Sheng Lee & Terra McKinnish, 2018. "The marital satisfaction of differently aged couples," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(2), pages 337-362, April.
    26. repec:pri:cheawb:case_paxson_economic_status_paper.pdf is not listed on IDEAS
    27. Whitney K. Newey, 2009. "Two-step series estimation of sample selection models," Econometrics Journal, Royal Economic Society, vol. 12(s1), pages 217-229, January.
    28. 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.
    29. Anna, Petrenko, 2016. "Мaркування готової продукції як складова частина інформаційного забезпечення маркетингової діяльності підприємств овочепродуктового підкомплексу," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(1), March.
    30. Burdett, Kenneth & Judd, Kenneth L, 1983. "Equilibrium Price Dispersion," Econometrica, Econometric Society, vol. 51(4), pages 955-969, July.
    31. Pierre-André Chiappori & Bernard Salanié, 2016. "The Econometrics of Matching Models," Journal of Economic Literature, American Economic Association, vol. 54(3), pages 832-861, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Malavasi, Chiara & Ye, Han, 2024. "Live Longer and Healthier: Impact of Pension Income for Low-Income Retirees," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302374, Verein für Socialpolitik / German Economic Association.
    2. Pascaline Dupas & Seema Jayachandran & Adriana Lleras-Muney & Pauline Rossi, 2024. "The Negligible Effect of Free Contraception on Fertility: Experimental Evidence from Burkina Faso," NBER Working Papers 32427, National Bureau of Economic Research, Inc.
    3. Gordon B. Dahl & Runjing Lu & William Mullins, 2022. "Partisan Fertility and Presidential Elections," American Economic Review: Insights, American Economic Association, vol. 4(4), pages 473-490, December.
    4. Adriana Lleras‐Muney, 2022. "Education and income gradients in longevity: The role of policy," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(1), pages 5-37, February.
    5. repec:bon:boncrc:crctr224_2024_514 is not listed 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. Andrew Goodman-Bacon & Jamein P. Cunningham, 2019. "Changes in Family Structure and Welfare Participation Since the 1960s: The Role of Legal Services," NBER Working Papers 26238, National Bureau of Economic Research, Inc.
    2. Verónica Amarante & Marco Manacorda & Edward Miguel & Andrea Vigorito, 2016. "Do Cash Transfers Improve Birth Outcomes? Evidence from Matched Vital Statistics, Program, and Social Security Data," American Economic Journal: Economic Policy, American Economic Association, vol. 8(2), pages 1-43, May.
    3. Cygan-Rehm, Kamila & Kuehnle, Daniel & Riphahn, Regina T., 2018. "Paid parental leave and families’ living arrangements," Labour Economics, Elsevier, vol. 53(C), pages 182-197.
    4. Carlana, Michela & Tabellini, Marco, 2018. "Happily Ever After: Immigration, Natives' Marriage, and Fertility," Working Paper Series rwp18-035, Harvard University, John F. Kennedy School of Government.
    5. Cavit Baran & Eric Chyn & Bryan A. Stuart, 2024. "The Great Migration and Educational Opportunity," American Economic Journal: Applied Economics, American Economic Association, vol. 16(3), pages 354-398, July.
    6. Ito, Takahiro & Tanaka, Shinsuke, 2018. "Abolishing user fees, fertility choice, and educational attainment," Journal of Development Economics, Elsevier, vol. 130(C), pages 33-44.
    7. Leonard M. Lopoo & Kerri M. Raissian, 2014. "U.S. Social Policy and Family Complexity," The ANNALS of the American Academy of Political and Social Science, , vol. 654(1), pages 213-230, July.
    8. Collins, William J. & Zimran, Ariell, 2019. "The economic assimilation of Irish Famine migrants to the United States," Explorations in Economic History, Elsevier, vol. 74(C).
    9. 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.
    10. Kamila Cygan-Rehm & Daniel Kühnle & Regina T. Riphahn, 2017. "Love your Leave, Don't Leave your Love! Paid Parental Leave and Children's Living Arrangements," CESifo Working Paper Series 6319, CESifo.
    11. Philipp Ager & Leah Boustan & Katherine Eriksson, 2021. "The Intergenerational Effects of a Large Wealth Shock: White Southerners after the Civil War," American Economic Review, American Economic Association, vol. 111(11), pages 3767-3794, November.
    12. Shelly Lundberg & Robert A. Pollak, 2007. "The American Family and Family Economics," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 3-26, Spring.
    13. Krzysztof Karbownik & Anthony Wray, 2019. "Educational, Labor-market and Intergenerational Consequences of Poor Childhood Health," NBER Working Papers 26368, National Bureau of Economic Research, Inc.
    14. Fletcher, Jason & Noghanibehambari, Hamid, 2024. "The siren song of cicadas: Early-life pesticide exposure and later-life male mortality," Journal of Environmental Economics and Management, Elsevier, vol. 123(C).
    15. Ran Abramitzky & Leah Boustan & Katherine Eriksson & James Feigenbaum & Santiago Pérez, 2021. "Automated Linking of Historical Data," Journal of Economic Literature, American Economic Association, vol. 59(3), pages 865-918, September.
    16. Martha J Bailey & Hilary Hoynes & Maya Rossin-Slater & Reed Walker, 2024. "Is the Social Safety Net a Long-Term Investment? Large-Scale Evidence From the Food Stamps Program," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(3), pages 1291-1330.
    17. Patrick Ishizuka, 2018. "The Economic Foundations of Cohabiting Couples’ Union Transitions," Demography, Springer;Population Association of America (PAA), vol. 55(2), pages 535-557, April.
    18. Joelle Abramowitz, 2017. "Assisted Reproductive Technology and Women’s Timing of Marriage and Childbearing," Journal of Family and Economic Issues, Springer, vol. 38(1), pages 100-117, March.
    19. Aline Bütikofer & René Karadakic & Kjell G. Salvanes, 2021. "Income Inequality and Mortality: A Norwegian Perspective," Fiscal Studies, John Wiley & Sons, vol. 42(1), pages 193-221, March.
    20. Sandner, Malte, 2019. "Effects of early childhood intervention on fertility and maternal employment: Evidence from a randomized controlled trial," Journal of Health Economics, Elsevier, vol. 63(C), pages 159-181.

    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-

    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:nbr:nberwo:27523. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.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.