Dissertation Defense: Samantha Steimle
Candidate: Samantha Steimle
Major: Psychology
Advisor: Rebecca Ryan, Ph.D.
Title: Exploring Variation in Cash Assistance: How Lump Sum versus Regular Payments Relate to Families’ Food Insecurity and Psychological Well-Being
Income is one of the strongest predictors of child development, with insufficient funds for basic needs undermining the well-being of children and parents alike. In the context of high child poverty rates in the U.S. and soaring rates of food insecurity during the COVID-19 pandemic, it is essential to explore ways to mitigate the harmful sequelae of low-income. Cash assistance represents one promising solution; however, questions remain regarding the best way to deliver cash to families. A lump sum payment, which delivers a large amount of money at once, could reduce the economic and psychological hardships associated with being low-income immediately, but these effects would likely fade as the money is spent. In contrast, a series of smaller payments delivered regularly may have smaller initial effects on family well-being but would likely last longer. This dissertation investigates how the lump sum, economic stimulus payments and monthly, Child Tax Credit (CTC) payments delivered during the pandemic relate to two indicators of family well-being, food insecurity and psychological distress, in the months following receipt.
I find that both forms of cash predicted lower food insecurity; stimulus payments were associated with reductions in severe food insecurity that faded over time, whereas CTC payments inconsistently predicted declines within and across months. I also find that both payment forms were associated with decreases in parents’ psychological distress, though again these findings were more consistent with stimulus checks. Moreover, reductions in parent distress were partially mediated by food insecurity, with more consistent mediation evidence for stimulus checks. Children’s psychological distress, conversely, was largely unaffected by cash receipt and was instead explained by changes in COVID-related restrictions. Overall, these results suggest that a lump sum allows families to address a wider breadth of economic needs, which is psychologically relieving to parents, while regular payments need to be large enough to have consistent longer-term effects. Accordingly, policymakers should consider using lump sums during times of intense economic need and regular payments during times of relative economic stability. In doing so, we can optimally use limited government dollars in ways that maximize the well-being of low-income children and families.