Unconditional Cash Assistance During the COVID-19 Pandemic and Infant Health

This paper examines how cash transfers that are not conditional on contemporaneous employment and are distributed during an economic downturn affect infant health. Leveraging variation in four pandemic-era payments, I find that eligibility for an additional $1,000 before birth reduces the prevalence of low birthweight by 1.6-3.5% and preterm births by at least 1.4%. Effects are larger for births that were conceived before the pandemic and vulnerable populations, indicating that additional resources can mitigate some of the adverse effects of an unanticipated negative shock. The payments decreased maternal smoking and increased prenatal care, consistent with families investing in children’s health.