The Effect of Child Benefits on Financial Difficulties and Spending Habits: Evidence from Poland's Family 500+ Program

Stefani Milovanska-Farrington ()
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Stefani Milovanska-Farrington: The University of Tampa

No 14274, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: cash benefits; child allowance; expenditures; financial difficulties; poverty (search for similar items in EconPapers)
JEL-codes: D10 I38 J13 P46 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2021-04
New Economics Papers: this item is included in nep-tra
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Citations: View citations in EconPapers (1)

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