Giving pregnant women cash transfers cuts infant mortality, research finds

A new study by Associate Professor Dennis Egger (Department of Economics and Center for the Study of African Economies, University of Oxford) and researchers at the University of California, Berkeley reveals that giving unconditional cash transfers to pregnant women in rural Kenya significantly reduces infant and child mortality.

The research is published as a working paper on the National Bureau of Economic Research website and conducted in partnership with co-authors Michael Walker, Nick Shankar, Professor Edward Miguel, and Grady Killeen from the University of California, Berkeley, evaluates the effects of a large-scale cash transfer program operated by the non-government organization GiveDirectly. Their findings show that providing a one-time, unconditional cash transfer of US $1,000 (equivalent to around 75% of annual household income) reduced infant mortality by 49% and under-five mortality by 45% in households where the cash arrives just around the time of birth.

Drawing on regional census data covering over 100,000 children across 10,500 low-income households in more than 650 villages, the study offers rare and compelling evidence from a large-scale randomized controlled trial of how direct financial support to expectant mothers can dramatically improve early childhood survival.

The sharp reduction in infant and child deaths is due to reductions in largely preventable conditions by appropriate obstetric care. It is concentrated among the poorest households and appears to be driven by several channels, including increased rates of hospital births, improved nutrition, and the ability of mothers to rest during pregnancy and after childbirth. Access to quality health care therefore seems a crucial complement to generating these effects.

This research underscores the powerful role of financial security during pregnancy and the postpartum period—and the potential for well-designed, unconditional cash transfers to save lives in low-resource settings.

Commenting on the study, Associate Professor Egger stated, “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.”

A new study by Associate Professor Dennis Egger (Department of Economics and Center for the Study of African Economies, University of Oxford) and researchers at the University of California, Berkeley reveals that giving unconditional cash transfers to pregnant women in rural Kenya significantly reduces infant and child mortality.

The research is published as a working paper on the National Bureau of Economic Research website and conducted in partnership with co-authors Michael Walker, Nick Shankar, Professor Edward Miguel, and Grady Killeen from the University of California, Berkeley, evaluates the effects of a large-scale cash transfer program operated by the non-government organization GiveDirectly. Their findings show that providing a one-time, unconditional cash transfer of US $1,000 (equivalent to around 75% of annual household income) reduced infant mortality by 49% and under-five mortality by 45% in households where the cash arrives just around the time of birth.

Drawing on regional census data covering over 100,000 children across 10,500 low-income households in more than 650 villages, the study offers rare and compelling evidence from a large-scale randomized controlled trial of how direct financial support to expectant mothers can dramatically improve early childhood survival.

The sharp reduction in infant and child deaths is due to reductions in largely preventable conditions by appropriate obstetric care. It is concentrated among the poorest households and appears to be driven by several channels, including increased rates of hospital births, improved nutrition, and the ability of mothers to rest during pregnancy and after childbirth. Access to quality health care therefore seems a crucial complement to generating these effects.

This research underscores the powerful role of financial security during pregnancy and the postpartum period—and the potential for well-designed, unconditional cash transfers to save lives in low-resource settings.

Commenting on the study, Associate Professor Egger stated, “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.”