Welfare and the Wellbeing of Children: The Relative Effectiveness of Cash and Inkind Transfers

Working Paper: NBER ID: w4539

Authors: Janet Currie

Abstract: Cash transfers to families with children are increasingly being restricted to parents who work, while families of non-working parents are receiving a progressively larger share of their benefits in kind. This paper provides an evaluation of the empirical evidence regarding the effects of in-kind and cash transfer program on the children who are their intended beneficiaries. A distinction is made between in- kind transfer programs, such as the Food Stamp Program, that provide transfers to families that are earmarked for certain purposes, and programs such as Medicaid that provide specific services directly to children. Although the evidence is incomplete, it suggests that in- kind programs have stronger effects on children than cash transfers, and that programs that target specific benefits directly to children have the largest positive effects.

Keywords: welfare; children; cash transfers; inkind transfers

JEL Codes: No JEL codes provided


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
inkind transfers (F16)child wellbeing (I31)
cash transfers (F24)child wellbeing (I31)
inkind transfers > cash transfers (F16)child wellbeing (I31)
targeting benefits to children (J13)child wellbeing (I31)
targeting resources to mothers (J13)child wellbeing (I31)

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