Annual Research Review: Cash transfer programs and young people's mental health – a review of studies in the United States

Abstract

Worldwide, more than one in 10 children or adolescents is diagnosed with a mental disorder. Cash transfer programs, which aim to reduce poverty and improve life outcomes by providing direct cash assistance to families and incentivizing or enabling spending on education, health service use, dietary diversity and savings, have been shown to improve the mental health and well‐being of young people in low‐ and middle‐income countries. The goal of this review is to describe cash transfer programs in the United States, to describe potential mechanisms by which cash transfer programs could improve child and adolescent mental health and to summarize any evidence of the impact of cash transfer programs. We conclude that much of the evidence on the relationship between cash transfer programs and child and adolescent mental health in the United States is based on a relatively small set of studies. Although most of these studies find that cash transfer programs are associated with reductions in emotional or behavioural health problems, effect sizes are small. For potential mechanisms of cash transfer effects, the strongest evidence is that cash transfer programs increase child‐related expenditures and savings and increase time spent with children. Evidence is mixed on whether cash transfer programs improve maternal mental health, parental disciplinary practices or children's exposure to violence.