Two recently-published papers coming out of the Rx Kids cash program in Flint, MI reveal that universal, unconditional cash transfers can have significant positive effects on birth outcomes as well as on maternal economic stability, mental health, and well-being. These findings further support a growing body of evidence that unconditional cash for families with children can measurably improve the health and well-being of both parents and children.
The Rx Kids Program—co-led by Dr. Mona Hanna and Luke Shaefer, Ph.D.—is a first-of-its-kind, place-based cash program that provides community-wide cash “prescriptions” to pregnant women and babies. The program focuses on this period of life for two reasons. The first reason is that families tend to experience a significant decline in economic well-being in the months before and after the birth of a child. Secondly, this time of economic vulnerability during the perinatal period also coincides with a critical neurodevelopmental window for babies.
Perinatal Cash Improved Birth Outcomes
The Rx Kids research team analyzed the effect of receiving cash prescriptions on birth outcomes by comparing changes in the rates of preterm birth and low birthweight in Flint, MI to a comparison of similar cities in the state. Before Rx Kids, Flint faced considerably higher rates of preterm birth and low birthweight than comparable Michigan cities and the state overall. Exposure to Rx Kids’ cash prescription produced dramatic improvements in both measures; the rate of preterm births fell by 13-18 percent, and the rate of low birthweight fell by 22-27 percent. Relatedly, admissions to the neonatal intensive care unit also decreased.
Perinatal Cash Improved Birth Outcomes
The Rx Kids research team analyzed the effect of receiving cash prescriptions on birth outcomes by comparing changes in the rates of preterm birth and low birthweight in Flint, MI to a comparison of similar cities in the state. Before Rx Kids, Flint faced considerably higher rates of preterm birth and low birthweight than comparable Michigan cities and the state overall. Exposure to Rx Kids’ cash prescription produced dramatic improvements in both measures; the rate of preterm births fell by 13-18 percent, and the rate of low birthweight fell by 22-27 percent. Relatedly, admissions to the neonatal intensive care unit also decreased.