When parents receive cash transfers, children in poverty benefit

What’s a universal basic income (UBI)? 

Some policymakers, politicians, and academics have suggested a universal basic income—giving large groups of people regular cash transfers unrelated to a job—would have positive impacts for societies and individuals. Advocates suggest that a UBI would allow people to meet their basic needs and those of their families, improving their own lives and setting up future generations for success. 

How do cash transfers impact children? 

Randall Akee, the Julie Johnson Kidd Professor of Indigenous Governance and Development at HKS, and co-authors examined outcomes for American Indian children whose families received direct, unconditional cash transfers as part of a tribal government program from tribal casino revenues; Akee and his co-authors summarize a developing literature which shows that children whose families received cash transfers were more likely to complete high school on time, have higher educational attainment by age 21, show reduced depression and anxiety in adolescence and adulthood, and have better economic outcomes than children whose families did not. Children whose families received the cash transfers also demonstrated increased measures of conscientiousness and agreeableness—traits that can be beneficial for work and school. They also find that there is a strong positive effect of the operation of tribal casino operations on reducing unemployment and stimulating employment in adjacent and related industries.