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Unconditional Cash Transfers and Maternal Employment: Evidence from the Baby's First Years Study.

Maria Sauval¹, Greg J Duncan¹, Lisa A Gennetian²

¹University of California, Irvine, School of Education, Irvine, CA 92697, USA.

Journal of Public Economics

|July 29, 2025

Summary

Unconditional cash support did not significantly alter maternal employment or household earnings for mothers of young children. However, cash transfers may have reduced maternal work hours during the COVID-19 pandemic.

Keywords:

H31 I30 J13 J18 J22 cash transfers experiment maternal employment

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Isolation of Leukocytes from the Human Maternal-fetal Interface

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Area of Science:

Economics
Sociology
Public Policy

Background:

Maternal labor force participation is a key factor in household economic stability and is influenced by various social and economic policies.
Unconditional cash transfers (UCTs) are increasingly explored as a policy tool, but their impact on maternal employment remains debated.
Understanding these effects is crucial for designing effective social support programs.

Purpose of the Study:

To estimate the impact of unconditional monthly cash transfers on the labor force participation of mothers with young children.
To analyze maternal employment behavior over the first four years of a child's life in response to financial support.
To provide empirical evidence for policy discussions on UCTs and their economic consequences.

Main Methods:

Utilized data from the Baby's First Years study, a large-scale randomized controlled trial.
Compared employment outcomes between a group receiving unconditional cash transfers and a control group.
Analyzed data covering the first four years of a child's life, including a period during the COVID-19 pandemic.

Main Results:

No statistically significant differences were detected in overall maternal labor force participation or total household earnings between the cash transfer and control groups.
Receipt of the unconditional cash transfer was associated with a reduction in maternal work hours during the peak of the COVID-19 pandemic (2020-21).
The findings suggest minimal impact on long-term employment decisions but a potential short-term effect during economic disruption.

Conclusions:

Unconditional cash transfers do not appear to significantly deter maternal employment or reduce household earnings in the long term.
The study highlights a potential, temporary reduction in work hours during periods of significant economic uncertainty, such as the pandemic.
Policy implications suggest UCTs can be considered without major concerns about widespread withdrawal from the labor force.