Persistent Effects of Social Program Participation on the Third Generation

Abstract Can participation in safety net programs have long-lasting negative effects across multiple generations? We take advantage of a 1993 Dutch disability insurance reform which tightened requirements and lowered benefits for participants. We study the third generation 25 years after the reform, finding that grandchildren of individuals whose DI eligibility and benefits were reduced are less likely to be born premature, have low birthweight, or experience complicated deliveries. They also have better health and schooling outcomes during early childhood. These early-life improvements are consequential, as they have been linked to better health, education, and labor market outcomes in adulthood.