This is the title of currently published AER: Insights research from ARE '20 alumnus Claire Duquennois, Assistant Professor in the department of Economics at the University of Pittsburgh.
The research finds that household heads in Indonesia surveyed after receiving an unconditional cash transfer, experienced a significant improvement in sleep quality compared to those surveyed just before receiving it. The improvement appears driven by reduced financial stress, as recipients reported fewer worries, less frustration and fatigue, improved performance on cognitive tasks linked to sleep deprivation, higher savings, and lower debt. The effects were specific to eligible household heads—typically the breadwinners—and were not observed among ineligible heads or other household members. This is important because it demonstrates that financial insecurity directly harms sleep and cognitive functioning, highlighting how poverty can impair well-being and productivity beyond income alone.