Parents' incomes and children's outcomes: A quasi-experiment using transfer payments from casino profits

We examine the role an exogenous increase in household income, due to a government transfer unrelated to household characteristics, plays in children's long-run outcomes. Children in affected households have higher levels of education in their young adulthood and a lower incidence of criminalit...

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Bibliographic Details
Published in:American economic journal. Applied economics 2010, Vol.2 (1), p.86-115
Main Authors: Akee, Randall K. Q, Copeland, William E, Keeler, Gordon, Angold, Adrian, Costello, E. Jane
Format: Article
Language:English
Subjects:
Adoption
Age
Behavioral sciences
Bildungsabschluss
Bildungsniveau
Casinos
Children
Children & youth
Economic development
Economic models
Economic theory
Education
Educational attainment
Epidemiology
Families & family life
Family income
Haushaltseinkommen
Household income
Households
Income
Kind
Kriminalität
Longitudinal studies
Medical research
Minority & ethnic groups
Mothers
Native Americans
Native North Americans
North Carolina
Parents
Parents & parenting
Poverty
Psychiatry
Quasi-experimental methods
School age children
Seminars
Socioeconomic factors
Studies
Transfer
Transfer payments
USA
Wirkungsanalyse
Young adults
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Summary:We examine the role an exogenous increase in household income, due to a government transfer unrelated to household characteristics, plays in children's long-run outcomes. Children in affected households have higher levels of education in their young adulthood and a lower incidence of criminality for minor offenses. Effects differ by initial household poverty status. An additional $4,000 per year for the poorest households increases educational attainment by one year at age 21, and reduces the chances of committing a minor crime by 22 percent for 16 and 17 year olds. Our evidence suggests improved parental quality is a likely mechanism for the change.
ISSN:1945-7790
1945-7782
1945-7790
DOI:10.1257/app.2.1.86