Health effects of introducing an unconditional child benefit in Poland: Evidence from a difference in differences analysis

Abstract

The association between income and health is well-documented, yet the impact of unconditional child benefits on health in high-income countries remains unclear. This study evaluates the health effects of a generous unconditional child transfer introduced in Poland in 2016. We employed a difference-in-differences methodology using 2010-2019 data from the European Union Statistics on Income and Living Conditions (EU-SILC). Our analysis compared health outcomes between parents eligible for the child benefit and a control group of childless individuals and parents of ineligible children. The introduction of the child benefit was associated with a 2.7 percentage point increase in reporting very good self-perceived health among beneficiaries. The improvement was more significant among the lower-income half, and there was a notable decrease in unmet medical and dental needs by 1.4 percentage points. The policy significantly improved health outcomes, suggesting the potential of unconditional cash transfers to enhance health in high-income countries, particularly for economically disadvantaged groups.

Keywords: Cash transfers; Child benefits; Health; Income; Unmet medical needs.