Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324980 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11989
Publisher: 
CESifo GmbH, Munich
Abstract: 
Mental health and wellbeing are unequally distributed in high-income countries, disadvantaging low-income individuals. Unconditional, regular, and guaranteed cash transfers may help address this inequality by promoting financial security and agency. We conducted a preregistered RCT in Germany, where treated participants received monthly payments of EUR 1,200 for three years. Cash transfers improve mental health and wellbeing. These effects are substantively large and robust. Cash transfers also improve perceived autonomy, savings, prosocial giving, time with friends, and sleep. Our findings suggest that cash transfers improve mental health and wellbeing if they empower agency and meaningful life changes.
Subjects: 
cash transfers
mental health
life satisfaction
purpose in life
agency
autonomy
life changes
JEL: 
C93
I31
D10
Document Type: 
Working Paper
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