The Impact of Cash after Childbirth on Crime: Evidence from a Discontinuity in Tax Benefits

This paper examines the causal impact of additional income provided to low-income families shortly after childbirth on mothers' criminal justice involvement. Using a regression discontinuity design based on year-end births, where children born before December 31 generate larger cash transfers in the form of refundable tax credits for families compared to January-born children, I analyze linked administrative data from a large US metropolitan county. I find that eligibility for additional income during the first year of childbirth does not significantly impact mothers' criminal activity in the immediate years following childbirth but significantly reduces long-term criminal justice involvement among mothers.