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

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 14274

Classification and Topics

• Classification: Wirtschaft ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; Household Behavior: General ; Other Economic Systems: Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty ; Fertility; Family Planning; Child Care; Children; Youth
• Subject: cash benefits ; child allowance ; expenditures ; financial difficulties ; poverty

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Milovanska-Farrington, Stefani
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/236305
• Last update: 10.03.2025, 11:44 AM CET