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We investigate the long-term effects of cash assistance on beneficiaries
and their children among participants in the Seattle-Denver
Income Maintenance Experiment. Treated families in this randomized
experiment received thousands of dollars in extra government
benefits for three or five years in the 1970s. We match experimental
records to Social Security Administration data using a novel algorithm,
finding that treatment decreased adults’ post-experimental
annual earnings by $1,800, and increased their disability benefit applications.
Effects were strongest around retirement age; evidence
suggests possible occupational mechanisms. In contrast, children
experienced no significant effects on earnings or interaction with
the disability system.
