Do Cash Transfers Improve Birth Outcomes? Evidence from Matched Vital Statistics, and Program and Social Security Data

There is limited empirical evidence on whether cash transfers to poorpregnant women improve children’s birth outcomes and potentiallyhelp weaken the cycle of intergenerational poverty. Using a uniquearray of program and social security administrative micro-datamatched to longitudinal vital statistics in Uruguay, we estimate thatparticipation in a generous social assistance program led to a sizablereduction in the incidence of low birthweight. The effect is dueto faster intrauterine growth rather than longer gestational length.Our findings are consistent with improved maternal nutrition duringpregnancy being a key driver of improved birthweight