Sociologists estimate impact of Alaska’s universal cash payments on birth outcomes

A sociological investigation has estimated the effects of Alaska’s universal cash transfer program on newborn health outcomes using data spanning 28 years. The study revealed that while a cash payment during pregnancy had minimal impact on birthweight, it may provide other significant benefits for birthing people and families, such as reducing financial strain or supporting reproductive autonomy. The study, “Estimating the Effect of a Universal Cash Transfer on Birth Outcomes,” is published in the American Sociological Review.

The work was conducted by Kiara Wyndham-Douds, assistant professor of sociology at Washington University in St. Louis, and Sarah Cowan, associate professor of sociology at New York University. Their research explored the potential benefits of cash transfers during pregnancy using data from Alaska’s Permanent Fund Dividend (PFD) from the years 1982-2010.

The PFD program provides a yearly cash payment to all Alaska residents regardless of their financial status. Therefore, researchers had a unique opportunity to explore with more accuracy than ever before how increased financial resources might affect birth outcomes. Using the PFD data allowed the sociologists to examine the impacts of cash infusions unrelated to personal wages or individuals’ eligibility for social safety net programs.

Although the population used for this study may not be generalizable to the broader U.S. population, researchers noted that any type of cash payment has the potential to alleviate financial stress for new parents. Simply giving the payment may have produced favorable intrauterine conditions that led to the beneficial outcome that more babies survived to term than might have otherwise.

More broadly, this research highlights the complexity of addressing health inequalities through financial interventions. It underscores the need for a more nuanced approach to policymaking and further investigations into whether and how the timing of cash resources can best support maternal and newborn health. The study emphasizes the importance of advancing both theory and policy to effectively tackle health inequalities from birth and beyond.

The results of this study were based on previous research conducted by Wyndham-Douds and Cowan regarding the impact of the Alaska Permanent Fund Dividend.