A recent study has found that providing a one-time, unconditional cash transfer to pregnant women can significantly reduce infant and child mortality rates. The research was conducted by Associate Professor Dennis Egger in collaboration with Michael Walker, Nick Shankar, Professor Edward Miguel, and Grady Killeen from the University of California, Berkeley. The team evaluated the impact of a large-scale cash transfer program operated by GiveDirectly.
The study examined data from over 100,000 children in more than 10,500 low-income households across 650 villages. According to the findings, giving expectant mothers USD1,000—about 75% of annual household income—around the time of birth led to a 49% reduction in infant mortality and a 45% reduction in under-five mortality.
Researchers attributed this decrease to fewer deaths from preventable conditions due to better obstetric care. The benefits were most pronounced among the poorest households and appeared linked to higher rates of hospital births, improved nutrition for mothers and children, and increased opportunities for mothers to rest during pregnancy and after childbirth. Access to quality healthcare played an important role in achieving these outcomes.
Associate Professor Egger commented on the results: "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 by NBER.