The Long-Term Eﬀects of Cash Assistance
We investigate the long-term eﬀects of cash assistance for beneﬁciaries and their children by following up with participants in the Seattle-Denver Income Maintenance Experiment. Treated families in this randomized experiment received thousands of dollars annually in extra government beneﬁts for three or ﬁve years in the 1970s. We match experimental records to Social Security Administration data using a novel algorithm and ﬁnd that treatment decreased adults’ post-experimental annual earnings by $1,800 and increased disability beneﬁt applications by 6.3 percentage points, possibly driven by occupational changes. In contrast, children in treated families experienced no signiﬁcant eﬀects on any main variable studied.
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