%0 Report %A Milovanska-Farrington, Stefani %T The Effect of Child Benefits on Financial Difficulties and Spending Habits: Evidence from Poland's Family 500+ Program %D 2021 %8 2021 Apr %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 14274 %U https://www.iza.org/publications/dp14274 %X In response to the low fertility rate and high child poverty in Poland, the government implemented the Family 500+ program which provides cash transfers to families with two or more children, and low-income, one-child families. Using a difference-in-differences approach, we explore the causal effect of this policy on expenditure and financial difficulties of beneficiaries relative to non-eligible families. The findings suggest that after the introduction of the program, expenditures on food and cultural activities increased, and the likelihood of experiencing a hardship paying for utilities and medical care declined for the treatment relative to the control group. These results imply a beneficial effect of child benefits on tackling financial difficulties of families with children. From a policy perspective, the findings indicate that cash transfers can alleviate child poverty concerns and financial constraints to having children. %K expenditures %K child allowance %K cash benefits %K financial difficulties %K poverty