Topic: Health

A new study found that giving people money directly didn't increase injuries or deaths. This was a concern for some critics who thought recipients would spend the money on harmful things.

In recent years, programs that give cash directly to individuals have become more common in the United States. However, these programs often face criticism. Some skeptics worry that providing cash with no restrictions could lead people to make unhealthy choices, such as spending money on alcohol or drugs, which could increase the risk of injury or death. A new 11-year study of Alaska's long-running cash transfer program challenges those concerns.

The study was conducted by researchers from New York University, the University of California San Francisco (UCSF) School of Medicine, and Alaska's former chief medical officer. The findings were published in the American Journal of Epidemiology.

The analysis centered on Alaska's Permanent Fund Dividend (PFD), a statewide program that provides annual payments to residents. For this study, researchers reviewed data from 2009 through 2019. They analyzed records of all traumatic injuries treated in Alaska hospitals using the state's trauma registry, along with all reported deaths documented in vital records.

Across the state, the annual cash payments were not associated with an increase in serious traumatic injuries or deaths from unnatural causes in the short term. The findings held up under multiple robustness checks.

Injury and death rates did not rise during the week to month after payments were distributed, which usually occurs in the fall. The same pattern was observed in Alaska's urban regions, which resemble small and medium-sized cities in the continental US.

This suggests that the results may apply beyond a single state or region.

Why It Matters

As India works towards implementing its own universal basic income program, this study provides valuable insights into the effectiveness of cash transfers. It shows that providing people with financial support does not necessarily lead to negative consequences.

Key Facts

• The study was conducted over an 11-year period from 2009 to 2019.
• Researchers analyzed data on traumatic injuries and deaths recorded in Alaska hospitals and vital records.
• The findings showed no association between cash payments and increased serious traumatic injuries or deaths from unnatural causes in the short term.
• The study reviewed every traumatic injury and death recorded statewide, covering a longer time frame than previous work.
• This study stands out because it assessed a program that reaches an entire state, reflecting a broader and more diverse population than most guaranteed income studies.

Key Terms

Traumatic injuries

Injuries caused by accidents or violence

Implications

As India works towards implementing its own universal basic income program, this study provides valuable insights into the effectiveness of cash transfers. It shows that providing people with financial support does not necessarily lead to negative consequences.