Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/236305 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14274
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
cash benefits
child allowance
expenditures
financial difficulties
poverty
JEL: 
I38
D10
P46
J13
Document Type: 
Working Paper

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