Cash transfers linked to improved educational outcomes for American Indian children

Research led by the University of California, Irvine has found that cash transferred to families significantly boosted academic performance among American Indian children.

The study, published online in Nature Communications, highlights the benefits of financial support in reducing an intergenerational legacy of socioeconomic disadvantage.

“Our research provides strong evidence that early economic investments in families can boost test scores in reading and math, enhancing life outcomes for the next generation,” said corresponding author Tim Bruckner, professor of health, society and behavior in UC Irvine’s Joe C. Wen School of Population & Public Health.

“This is particularly important for American Indian communities that have historically faced systemic barriers to education.”

The research team focused on a casino that opened in 1990 on the land of a Southeastern American Indian tribe in rural North Carolina. Tribe members began receiving cash transfers—designated for community welfare and economic development—from casino profits in 1996.

Results showed that children of mothers who got these funds improved their test scores in reading and math. These gains were comparable to, and sometimes exceeded, the effects of other educational interventions in North Carolina.

Findings also revealed the intergenerational impacts of this financial arrangement, with mothers who had experienced more years of cash transfers as children seeing greater academic benefits for their own children.

The nearly 35-year operation of the casino has yielded additional bonuses that have contributed to better overall well-being for both American Indian and non-American Indian residents in the region. Half the gaming revenues are allocated to investments in health care centers, scholastic academies, behavioral health services and drug abuse prevention programs. As the largest employer, the casino also serves as a catalyst for local businesses.

“Our findings underscore the long-term value of childhood investments in helping to overcome socioeconomic inequalities, but the long-standing effects of multigenerational discrimination and structural barriers cannot be overcome with financial aid alone,” Bruckner said.

“Gaps in educational attainment between American Indian and non-American Indian students in math and reading persist. We need to conduct further research into other mechanisms that may be driving these [test score] improvements, such as changes in health outcomes, parental decision-making and the broader community infrastructure enhancements made possible by the casino’s revenues.”