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. 2010 Jan;2(1):86-115.
doi: 10.1257/app.2.1.86.

Parents' Incomes and Children's Outcomes: A Quasi-Experiment

Randall K Q Akee, William E Copeland, Gordon Keeler, Adrian Angold, Elizabeth J Costello

Parents' Incomes and Children's Outcomes: A Quasi-Experiment

Randall K Q Akee et al. Am Econ J Appl Econ. 2010 Jan.

Abstract

We examine the role that 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 $4000 per year for the poorest households increases educational attainment by one year at age 21 and reduces having ever committed a minor crime by 22% at ages 16-17. Our evidence suggests that improved parental quality is a likely mechanism for the change.

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Figures

Figure 1
Figure 1
Household Income By American Indian Parent Status in Waves 1−8
Figure 2
Figure 2
Mother's Unemployment Incidence by Waves 1−3
Figure 3
Figure 3
Father's Unemployment Incidence by Waves 1−3
Figure 4
Figure 4
Father's Reported Drug and Alcohol Incidence by Data Waves as Reported by Mother
See this image and copyright information in PMC

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