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"WELFARE PROGRAM"
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Building State Capacity: Evidence from Biometric Smartcards in India
Antipoverty programs in developing countries are often difficult to implement; in particular, many governments lack the capacity to deliver payments securely to targeted beneficiaries. We evaluate the impact of biometrically authenticated payments infrastructure (\"Smartcards\") on beneficiaries of employment (NREGS) and pension (SSP) programs in the Indian state of Andhra Pradesh, using a large-scale experiment that randomized the rollout of Smartcards over 157 subdistricts and 19 million people. We find that, while incompletely implemented, the new system delivered a faster, more predictable, and less corrupt NREGS payments process without adversely affecting program access. For each of these outcomes, treatment group distributions first-order stochastically dominated those of the control group. The investment was cost-effective, as time savings to NREGS beneficiaries alone were equal to the cost of the intervention, and there was also a significant reduction in the \"leakage \"of funds between the government and beneficiaries in both NREGS and SSP programs. Beneficiaries overwhelmingly preferred the new system for both programs. Overall, our results suggest that investing in secure payments infrastructure can significantly enhance \"state capacity\" to implement welfare programs in developing countries.
Journal Article
The long-run impact of cash transfers to poor families
We estimate the long-run impact of cash transfers to poor families on children's longevity, educational attainment, nutritional status, and income in adulthood. To do so, we collected individual-level administrative records of applicants to the Mothers' Pension program—the first government-sponsored welfare program in the United States (1911-1935)—and matched them to census, WWII, and death records. Male children of accepted applicants lived one year longer than those of rejected mothers. They also obtained onethird more years of schooling, were less likely to be underweight, and had higher income in adulthood than children of rejected mothers.
Journal Article
Did Austerity Cause Brexit?
This paper documents a significant association between the exposure of an individual or area to the UK government’s austerity-induced welfare reforms begun in 2010, and the following: the subsequent rise in support for the UK Independence Party, an important correlate of Leave support in the 2016 UK referendum on European Union membership; broader individual-level measures of political dissatisfaction; and direct measures of support for Leave. Leveraging data from all UK electoral contests since 2000, along with detailed, individual-level panel data, the findings suggest that the EU referendum could have resulted in a Remain victory had it not been for austerity.
Journal Article
Family Welfare Cultures
We investigate the existence and importance of family welfare cultures, where the receipt of a welfare program by one generation causes increased participation in the next generation. Our context is Norway’s disability insurance (DI) system. To overcome the challenge of correlated unobservables across generations, we take advantage of random assignment of judges to DI applicants whose cases are initially denied. Some appeal judges are systematically more lenient, which leads to random variation in the probability a parent will be allowed DI. Using this exogenous variation, we find strong evidence for a causal link across generations: when a parent is allowed DI at the appeal stage, their adult child’s participation over the next five years increases by 6 percentage points. This effect grows over time, rising to 12 percentage points after 10 years. Although these findings are specific to our setting, they highlight that welfare reforms can have long-lasting effects on program participation, since any original effect on the current generation could be reinforced by changing the participation behavior of their children as well. The detailed nature of our data allows us to compare the intergenerational transmission with spillover effects in other networks and to explore mechanisms.
Journal Article
Racial Disproportionality and Disparities in the Child Welfare System: Why Do They Exist, and What Can Be Done to Address Them?
Children of color are overrepresented in the child welfare system, and Black children have been most significantly impacted by this racial disproportionality. Racial disproportionality in child welfare exists because of influences that are both external to child welfare systems and part of the child welfare system. We summarize the causes of racial disproportionality, arguing that internal and external causes of disproportional involvement originate from a common underlying factor: structural and institutional racism that is both within child welfare systems and part of society at large. Further, we review options for addressing racial disproportionality, arguing that it needs to be rectified because of the harm it causes Black children and families and that forcible separation of children from their parents can no longer be viewed as an acceptable form of intervention for families in need.
Journal Article
Who Wants Affordable Housing in Their Backyard? An Equilibrium Analysis of Low-Income Property Development
We nonparametrically estimate spillovers of properties financed by the Low Income Housing Tax Credit (LIHTC) onto neighborhood residents by developing a new difference-in-differences style estimator. LIHTC development revitalizes low-income neighborhoods, increasing house prices 6.5 percent, lowering crime rates, and attracting racially and income diverse populations. LIHTC development in higher-income areas causes house price declines of 2.5 percent and attracts lower-income households. Linking these price effects to a hedonic model of preferences, LIHTC developments in low-income areas cause aggregate welfare benefits of $116 million. Affordable housing development acts like a place-based policy and can revitalize low-income communities.
Journal Article
THE SHORT-TERM IMPACT OF UNCONDITIONAL CASH TRANSFERS TO THE POOR
We use a randomized controlled trial to study the response of poor households in rural Kenya to unconditional cash transfers from the NGO GiveDirectly. The transfers differ from other programs in that they are explicitly unconditional, large, and concentrated in time. We randomized at both the village and household levels; furthermore, within the treatment group, we randomized recipient gender (wife versus husband), transfer timing (lump-sum transfer versus monthly installments), and transfer magnitude (US$404 PPP versus US$1,525 PPP). We find a strong consumption response to transfers, with an increase in household monthly consumption from $158 PPP to $193 PPP nine months after the transfer began. Transfer recipients experience large increases in psychological well-being. We find no overall effect on levels of the stress hormone cortisol, although there are differences across some subgroups. Monthly transfers are more likely than lump-sum transfers to improve food security, whereas lump-sum transfers are more likely to be spent on durables, suggesting that households face savings and credit constraints. Together, these results suggest that unconditional cash transfers have significant impacts on economic outcomes and psychological well-being.
Journal Article
Explaining happiness trends in Europe
In Europe, differences among countries in the overall change in happiness since the early 1980s have been due chiefly to the generosity of welfare state programs—increasing happiness going with increasing generosity and declining happiness with declining generosity. This is the principal conclusion from a time-series study of 10 Northern, Western, and Southern European countries with the requisite data. In the present study, cross-section analysis of recent data gives a misleading impression that economic growth, social capital, and/or quality of the environment are driving happiness trends, but in the longterm, time-series data, these variables have no relation to happiness.
Journal Article
How Do Families Experience and Interact with CPS?
The lived experiences of child protective services (CPS)–involved parents is rarely considered from a social justice perspective. Parents and children endure the oversight of the child welfare system in myriad ways, and these experiences usually vary based on race, ethnicity, and socioeconomic status. This article explores how CPS interactions affect family dynamics and well-being and how family members view their experiences with CPS, including their sense of autonomy and empowerment. I focus on the inherent power dynamics between CPS workers and parents, race and ethnicity, and family. I highlight the perspectives of parents and their intended (rather than unintentional) parental behaviors (e.g., providing healthy food choices) to understand ways in which their socioecological contexts impact the well-being of their children. I report results of a pilot study designed to enhance the voices of parents in the literature and provide recommendations for policy and practice that inform innovative solutions to better support CPS-involved families.
Journal Article