The Effect of Monthly Cash Transfers during 5 Years on Households’ Wealth

Andrea Molina-Vera and Hessel Oosterbeek

Economic Development and Cultural Change, 2024, vol. 72, issue 2, 633 - 658

Abstract: We use rich register data and a regression discontinuity design to estimate the effects of a monthly cash transfer during 5 years on households’ wealth, labor supply, marital status, and fertility. We find that receipt of the transfer has a significantly negative effect on households’ wealth index. We also find that women who receive the transfer are less likely to be married and, therefore, to have a spouse who works. The sizes of these effects are larger for prior nonrecipients than for prior recipients. We find no effects on female labor supply or on fertility.

Date: 2024
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