The infant health effects of starting universal child benefits in pregnancy: Evidence from England and Wales

Elsevier

Available online 13 March 2023, 102751

Journal of Health EconomicsAuthor links open overlay panelHighlights•

Starting universal child benefits in pregnancy increases birth weight and reduces prematurity.

Babies born to younger mothers (aged 24 and under), particularly those living in deprived areas, benefit the most.

These effects cannot be explained by antenatal health attendance, nutrition, or smoking.

Reductions in stress during pregnancy remain a possible mechanism.

These findings suggest that the potential for birth weight gains from windfall cash transfers is larger than previously thought.

Abstract

Child benefits are typically paid from birth. This paper asks whether starting universal child benefits in pregnancy leads to improvements in infant health. Leveraging administrative birth registry and hospital microdata from England and Wales, I study the effects of the Health in Pregnancy Grant, a universal conditional cash transfer equivalent to three months of child benefit (190 GBP) as a lump sum to pregnant mothers from 2009 to 2011. I exploit quasi-experimental variation in eligibility with a regression discontinuity design in the date of birth of the baby. I find that the policy increased birth weight by 8-12 grams on average, reduced low birth weight (<2500 g) by 3-6 percent and decreased prematurity by 9-11 percent. Younger mothers, particularly those living in deprived areas, benefit the most. I present evidence that the mechanisms are unlikely to be antenatal care, nutrition or smoking, with reductions in stress remaining a possible explanation.

Keywords

Birth weight

Infant health

Cash transfer

Child benefit

© 2023 The Author. Published by Elsevier B.V.

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