TY - RPRT AU - Doyle, Mary-Alice AU - Schurer, Stefanie AU - Silburn, Sven TI - Unintended Consequences of Welfare Reform: Evidence from Birth Outcomes of Aboriginal Australians PY - 2020/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 13543 UR - https://www.iza.org/publications/dp13543 AB - Australia's 'income management' policy requires benefit recipients to spend at least half of their government transfers on essentials (e.g. food, housing). We estimate income management's impact on birth outcomes by exploiting its staggered rollout. By changing parents' consumption patterns, the policy aims to improve child outcomes. We find no evidence of this. Instead, our estimates suggest it reduced average birthweight by 95 grams and increased the probability of low birthweight by 3 percentage points. We explore the mechanisms that may explain this finding. Our study demonstrates how policies that are not carefully implemented and tested can unintentionally escalate existing inequalities. KW - income management KW - birth outcomes KW - Aboriginal children KW - welfare reform KW - unintended consequences ER -