A groundbreaking research initiative led by Yale School of Medicine will explore the transformative potential of "Baby Bonds," a pioneering policy aimed at reducing wealth inequality and improving health and wellbeing.
This innovative study is funded by The Connecticut Project and focuses on Connecticut's Baby Bonds program. The program, the first of its kind in the nation, establishes trust funds for babies born into low-income families.
Led by a multidisciplinary team of researchers from Yale and other institutions, this qualitative, community-based participatory research project will investigate the far-reaching implications of wealth-building policies. The study will assess the health, economic, and social impacts of Baby Bonds over the first four years of implementation.
While Baby Bonds funds will not be available to eligible individuals until they turn 18 years old, the expectation of future wealth may have significant impacts.
“Baby Bonds represent a bold policy innovation seeking to address deeply entrenched racial and economic disparities,” said cultural anthropologist Annie Harper, PhD, assistant professor of psychiatry at Yale School of Medicine and the study’s primary investigator. “Our research will examine how this wealth intervention may impact health and wellbeing even at this early stage of the program, offering critical insights for policymakers and advocates.”
Addressing the Wealth-Health Gap
Wealth inequality in the United States remains stark, with Black families holding just a fraction of the median wealth of White families. Wealth serves as a powerful determinant of health, enabling families to manage emergencies, invest in opportunities, and reduce financial stress.
Baby Bonds provide eligible babies with an initial $3,200 investment that grows until adulthood, when it can be used to invest in opportunities such as homeownership, higher education, or entrepreneurship.
“Our goal is to understand if Baby Bonds can influence not just economic outcomes but also health behaviors, community belonging, and intergenerational trauma,” said Tiffany N. Younger, PhD, co-investigator and postdoctoral fellow at Yale School of Medicine.
Community-Centered Approach
The study adopts a Community-Based Participatory Research (CBPR) approach, ensuring that impacted families have a voice in shaping the research. Community Advisory Boards and local organizations will play a pivotal role in participant recruitment and data analysis, ensuring the study remains grounded in the lived experiences of those most impacted by Baby Bonds.
"We are thrilled and honored to be part of this important research project, the first of its kind in the United States, to understand the early impacts of Baby Bonds on health and well-being,” said Darrick Hamilton, PhD, university professor, the Henry Cohen Professor of Economics and Urban Policy at The New School. “These findings will be useful not only for implementation of Baby Bonds in Connecticut, but to add to the learning and momentum for the many other places around the country - and the world - that are considering baby bonds as a transformative investment in people."
Specific Research Aims
The study will explore:
- Health and Wellbeing: Changes in mental and physical health, healthcare access, and lifestyle behaviors.
- Financial Decision-Making: Shifts in financial perceptions, savings, borrowing, and employment choices.
- Social and Political Impact: Effects on community belonging, social cohesion, and civic engagement.
A Foundation for Future Policies
Connecticut Baby Bonds sets the stage for national conversations about equitable wealth-building policies. This research will not only provide early insights into the program's effects but also inform the design of complementary policies and initiatives.
“This is an unprecedented opportunity to understand how public investment in wealth-building policies for families can shape health and social outcomes." said Victor Roy, MD, PhD, family physician, sociologist, and assistant professor of family medicine and community health at the University of Pennsylvania.
The study is supported by researchers from Yale School of Medicine, University of Pennsylvania, UCLA, and the New School.