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The Impact of Unconditional Cash Transfers on Parenting and Children

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Overview

Paper Summary › Explain Like I'm Five › Conflicts of Interest › Identified Limitations › Rating Explanation › Good to know › Topic Hierarchy › File Information ›

Paper Summary

Paperzilla title
Cash for Parents: Better Parenting, More Spending, But No Short-Term Boost for Kids

A randomized controlled trial providing $1,000 monthly to low-income parents for three years found improved parenting behaviors and increased spending on children, but no significant short-term improvements in children's educational or social-emotional outcomes. In fact, parents in the treatment group reported more behavioral difficulties and stress among their children, although this may be due to increased supervision and awareness by parents. Longer-term follow-up is needed to assess whether the observed improvements in parenting and investment generate benefits for children later in childhood or in adulthood.

Explain Like I'm Five

Giving low-income parents $1,000 a month for three years led to better parenting and more spending on kids but didn't improve kids' test scores or happiness in the short run.

Possible Conflicts of Interest

The study was funded by NIH and private sources. Authors are affiliated with universities and OpenResearch, which implemented the cash transfer program. No other conflicts were identified.

Identified Limitations

Small sample size for post-secondary education outcomes
The sample size for children old enough to attend college by the end of the intervention is relatively small which limits the precision of these results.
Short follow-up period
This short follow-up period may not be enough time to see how the increased spending and improved parenting affects child outcomes in the long-term. Long-term follow up is needed to determine this.
Conflicting parent reports of child stress and social development
Parents in the treatment group reported more behavioral difficulties and stress among their children, making it hard to tell if the intervention actually worsened children's social-emotional wellbeing or if it simply made parents more aware of existing issues.
Heterogeneity in effects
These results may not apply to families outside of these characteristics or to families facing different circumstances or interventions.

Rating Explanation

This is a well-designed study with a large sample size and randomized intervention. The limitations of a relatively short follow up, conflicting parental reports, and heterogeneity are acknowledged, and do not detract from the main contribution of the paper.

Good to know

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File Information

Original Title: The Impact of Unconditional Cash Transfers on Parenting and Children
Uploaded: August 06, 2025 at 12:02 PM
Privacy: Public