Unconditional Cash Transfers: A Path To Reducing Child Mortality
A groundbreaking study led by Associate Professor Dennis Egger, in collaboration with GiveDirectly, has revealed a remarkable strategy to combat infant mortality. The study highlights that a one-time, unconditional cash transfer of USD1,000—equivalent to about 75% of a household's yearly income—significantly reduces infant mortality by 49% and under-five mortality by 45% in low-income families when the funds are distributed around the time of birth.
This extensive study draws on data from over 100,000 children in 10,500 households across 650 villages, making it a rare and compelling example of a large-scale randomized controlled trial. The research demonstrates that direct financial support to pregnant women can lead to a dramatic improvement in child survival rates.
The significant decline in infant and child deaths is largely due to a reduction in preventable conditions. Improvements in healthcare access, such as higher rates of hospital births and better nutrition, play a critical role. Mothers also benefit from the ability to rest during and after pregnancy, contributing to the children's improved survival rates. This suggests that access to quality healthcare is crucial in achieving these positive outcomes.
The study emphasizes the powerful impact of financial security during pregnancy and postpartum. It highlights the potential for well-designed, unconditional cash transfers to save lives in resource-limited settings. As Associate Professor Egger notes, "Although the unconditional cash transfers were not primarily designed for this, our research shows that they may be a cost-effective way to reduce infant and child deaths."
The paper, titled ‘Can Cash Transfers Save Lives: Evidence from a Large-Scale Experiment in Kenya,’ has been published in the National Bureau of Economic Research (NBER), providing a valuable framework for policymakers and organizations aiming to enhance child health in similar contexts.