The Impact of Cash after Childbirth on Crime: Evidence from a Discontinuity in Tax Benefits

Sakshi Bhardwaj

AEA Papers and Proceedings, 2025, vol. 115, 292-96

Abstract: This paper examines the causal impact of additional income provided to low-income families shortly after childbirth on mothers' criminal justice involvement. Using a regression discontinuity design based on year-end births, where children born before December 31 generate larger cash transfers in the form of refundable tax credits for families compared to January-born children, I analyze linked administrative data from a large US metropolitan county. I find that eligibility for additional income during the first year of childbirth does not significantly impact mothers' criminal activity in the immediate years following childbirth but significantly reduces long-term criminal justice involvement among mothers.

JEL-codes: H24 I38 J13 J16 K42 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1257/pandp.20251128

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