Supplemental Security Income for Children, Maternal Labor Supply, and Family Well-Being Evidence from Birth Weight Eligibility Cutoffs

Abstract

Children born into poverty face substantial disadvantages; however, family processes have been shown to be a mediating factor. Using a discontinuity in infant eligibility for Supplemental Security Income (SSI) at 1,200 grams birth weight, we examine effects of SSI on parental labor supply, family processes, and child outcomes. We find that eligibility increases SSI participation and reduces maternal labor supply on the intensive margin, suggesting SSI income may crowd out parental earnings, but only in the short run. We find no effect on maternal depression or child outcomes, but SSI eligibility improves parenting behaviors, indicating SSI can operate via family processes.