Arbeitspapier

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

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.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 14274

Klassifikation
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
Thema
cash benefits
child allowance
expenditures
financial difficulties
poverty

Ereignis
Geistige Schöpfung
(wer)
Milovanska-Farrington, Stefani
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2021

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Milovanska-Farrington, Stefani
  • Institute of Labor Economics (IZA)

Entstanden

  • 2021

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