Reconsidering the labeling effect for child benefits: evidence from a transition economy

I consider expenditure on food, alcohol and tobacco, and clothing in households with children in Slovenia at the start of its transition to a market economy. I exploit the unique structure of its child benefit program in order to look for evidence that labeling a cash transfer a child benefit influences how that cash transfer is spent. Contrary to much of the recent literature on the non-fungibility of income, I do not find evidence supporting a labeling effect.