We take advantage of a new natural experiment to evaluate the health effects of scheduling birth early for non-medical reasons on infant health. In 2010, the cancellation of a generous child benefit in Spain led may families to schedule birth early in order to remain eligible for the subsidy. We document that the affected cohort of children did not suffer any increase in birth complications or medical conditions right at birth, but were significantly more likely to be admitted to hospital during their second and third weeks of life, suggesting potentially persistent negative health effects.

We investigate the causal impact of a generous unconditional cash transfer at birth on children’s health and academic performance. Using rich administrative data, we take advantage of the unexpected introduction of a baby bonus in Spain in 2007 and implement a difference-in-discontinuity approach comparing children born in the surrounding months in different years. We find little impact on children’s health and test scores. We also fail to find meaningful changes in household structure, maternal employment, parental time, or child-related monetary investments. Our results contribute to understanding which interventions are effective at fostering children’s health and human capital formation.