Research provides the foundation
Our motivation
Our goal is to learn from participants’ experiences and better understand both the potential and the limitations of unconditional cash transfers.
The comprehensiveness of this study allowed us to gather data on unconditional cash to more rigorously measure and understand its impact.
Politics
Politics
The impact of the cash transfer on political attitudes and behaviors was limited, with a few exceptions.
There were no effects on political participation and preferences, though there is evidence that recipients saw work as more important for individuals, society, or even as a requirement for accessing government programs.
Participant Perspectives
“[People] should just be able to exist. You know, get up, eat their food, and go to a job that, you know, makes them feel, you know, respected, and dignified and that they're doing good for the work.”
Related findings
Agency
Agency
Cash increases agency to think about, plan, and pursue goals.
The cash had a positive and significant effect on budgeting and planning for the future, desire to pursue further education, and entrepreneurial interest. Recipients set goals that aligned with their values and desires and many took steps toward achieving them.
Participant Perspectives
“[The program] was more about independence than anything. The empowerment of being able to not say ‘Uh mom, I need you to help me with my phone bill’…it was just not having to ask for help.”
Related findings
Health
Health
Cash increases some utilization; no measurable effects on physical health.
The cash transfers increased recipients’ use of hospital and emergency department care and some types of office-based medical care—particularly dental and specialist care. Although we find no significant effects on measures of physical health, the increased utilization of medical care may lead to long-term health benefits.
Participant Perspectives
“I got myself braces...I feel like people underestimate the importance of having nice teeth because it affects more than just your own sense of self, it affects how people look at you.”
Related findings
Employment
Employment
Cash provides flexibility to make employment decisions that align with individuals' circumstances, goals, and values.
Employment rates and work hours rose substantially over the course of the study for both recipients and control participants, but the average increases for control participants were larger. Though the cash transfers led to modest decreases in employment, work hours, and income overall, the employment effects varied across participants.
Participant Perspectives
“Because of that money and being able to build up my savings, I’m in a position for once to be picky…I don't have to take a crappy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.”
Related findings
Spending
Spending
Recipients increase spending on basic needs and support to others.
Cash is flexible and allows people to spend on their unique needs. On average, recipients spent the money on basic needs—food, transportation and rent—and on financial support to others.
Participant Perspectives
“It helped me pay a portion of my car note. It helped me pay a portion of my rent. Helped me pay a portion of my life.”
More findings from the OpenResearch team
Timeline
Jan 2016
Study initially proposed
May 2016
Elizabeth Rhodes joins OpenResearch
Sep 2016 – Sep 2018
Feasibility Studies
Aug 2019 – Mar 2020
In-person enrollment and survey
Nov 2019
Monthly surveys and app activities begin.
Mar 2020
COVID-19 Pandemic
Enrollment efforts pause.
Apr 2020 – Oct 2020
Telephone enrollment and survey
Jul 2020 – Dec 2020
First round of qualitative interviews
Oct 2020
Randomization
Nov 2020
Three year unconditional cash transfer program begins.
May 2021 – Jul 2021
Second round of qualitative interviews
Nov 2021 – Feb 2022
Third round of qualitative interviews
Apr 2022 – Jul 2022
Enumerated midline survey
Sep 2022 – Feb 2023
Fourth round of qualitative interviews
Apr 2023 – Jul 2023
Enumerated endline survey
Aug 2023 – Jan 2024
Fifth round of qualitative interviews
Oct 2023
Monthly unconditional cash transfers end.
Oct 2023 – Feb 2024
Collection of health measures
Dec 2023
Monthly surveys end.
Jan 2024
Quarterly surveys begin
Aug 2024 – Dec 2024
Sixth round of qualitative interviews
Mar 2020
US Government passes CARES Act and provides first round of stimulus checks.
Sep 2020
CDC places a moratorium on mortgage foreclosure and tenant evictions.
Dec 2020
US Government passes second round of stimulus checks and COVID-19 relief bills.
Mar 2021
COVID-19 vaccines available to general public in Texas
Mar 2021
US Government passes the American Rescue Plan Act.
Apr 2021
COVID-19 vaccines available to general public in Illinois
Apr 2021
Additional SNAP benefits go into effect.
May 2021
Paycheck Protection Program (PPP) ends.
May 2021
Texas moratorium on evictions ends.
Sep 2021
Enhanced unemployment benefits end.
Dec 2021
Illinois moratorium on evictions ends.
Dec 2021
Expanded child tax credit ends.
Apr 2023
States are now allowed to terminate Medicaid coverage, a process that was previously halted by the CARES Act.
Jul 2023
Rent relief program ends in Texas.
Sep 2023
Several remaining American Rescue Plan Act Provisions expire.
Apr 2020
Unemployment rate reaches 14.8%, more than four times higher than it was in February 2020.
Jan 2021
Unemployment rate is 6.4% at the start of 2021.
Apr 2021
First significant spike in inflation is observed, from 2.6% in March to 4.2% in April.
Dec 2021
By the end of 2021, inflation has tripled since the start of the year, reaching 7.5%
Jan 2022
Due to soaring inflation, mortgage and interest rates begin their first of many increases.
Jan 2022
Unemployment rate falls below 5% by January 2022.
Jul 2022
Inflation reached 9.1% in June 2022, marking the highest rate in over forty years.
Jan 2023
By the end of the year, interest rates have increased four-fold, and mortgage rates have doubled.
Timeline
Study initially proposed
Elizabeth Rhodes joins OpenResearch
Feasibility Studies
Feasibility Studies
In-person enrollment and survey
Monthly surveys and app activities begin.
Enrollment efforts pause.
COVID-19 Pandemic
US Government passes CARES Act and provides first round of stimulus checks.
In-person enrollment and survey
Telephone enrollment and survey
Unemployment rate reaches 14.8%, more than four times higher than it was in February 2020.
First round of qualitative interviews
CDC places a moratorium on mortgage foreclosure and tenant evictions.
Randomization
Telephone enrollment and survey
Three year unconditional cash transfer program begins.
US Government passes second round of stimulus checks and COVID-19 relief bills.
First round of qualitative interviews
Unemployment rate is 6.4% at the start of 2021.
COVID-19 vaccines available to general public in Texas
US Government passes the American Rescue Plan Act.
COVID-19 vaccines available to general public in Illinois
Additional SNAP benefits go into effect.
First significant spike in inflation is observed, from 2.6% in March to 4.2% in April.
Second round of qualitative interviews
Paycheck Protection Program (PPP) ends.
Texas moratorium on evictions ends.
Second round of qualitative interviews
Enhanced unemployment benefits end.
Third round of qualitative interviews
Illinois moratorium on evictions ends.
Expanded child tax credit ends.
By the end of 2021, inflation has tripled since the start of the year, reaching 7.5%
Unemployment rate falls below 5% by January 2022.
Due to soaring inflation, mortgage and interest rates begin their first of many increases.
Third round of qualitative interviews
Enumerated midline survey
Inflation reached 9.1% in June 2022, marking the highest rate in over forty years.
Enumerated midline survey
Fourth round of qualitative interviews
By the end of the year, interest rates have increased four-fold, and mortgage rates have doubled.
Fourth round of qualitative interviews
Enumerated endline survey
States are now allowed to terminate Medicaid coverage, a process that was previously halted by the CARES Act.
Rent relief program ends in Texas.
Enumerated endline survey
Fifth round of qualitative interviews
Several remaining American Rescue Plan Act Provisions expire.
Monthly unconditional cash transfers end.
Collection of health measures
Cash is one important piece of the puzzle. The impact may be limited without other resources like health care and child care.
Meet Basic Needs
The greatest impact on spending per month was on basic needs, specifically food, rent, and transportation.
Plan for the Future
Cash had an impact on planning to pursue further education, desire to plan for the future, and self-reported willingness to delay instant gratification for future benefit. We also find an effect on having a budget, planning for large expenses, and time spent on finances.
Moving
