The impact of a monthly unconditional cash transfer on child brain activity: A 4-year follow-up

Early childhood poverty is associated with neurodevelopmental differences, but causal evidence linking income to brain development is sparse. In the present study, we examine whether four years of monthly unconditional cash transfers to mothers experiencing low income cause differences in their preschoolers’ brain activity. Shortly after giving birth, mothers were randomized to receive $333/month or $20/month. We find no impact on our primary preregistered outcome (an aggregated index of mid-to-high-frequency brain activity) or our secondary preregistered outcome frontal gamma power. In additional analyses that were part of our pre-registered analytic plan, we find that preschoolers in the high-cash gift group have higher alpha power than those in the low-cash gift group, but no differences in theta, beta, or gamma power. These findings suggest monthly unconditional cash transfers may have impacts on children’s alpha power during the preschool years, although this evidence needs further investigation and replication.