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American Economic Journal: Applied Economics: Vol. 2 No. 1 (January 2010)

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Parents' Incomes and Children's Outcomes: A Quasi-experiment Using Transfer Payments from Casino Profits

Article Citation

Akee, Randall K. Q., William E. Copeland, Gordon Keeler, Adrian Angold, and E. Jane Costello. 2010. "Parents' Incomes and Children's Outcomes: A Quasi-experiment Using Transfer Payments from Casino Profits." American Economic Journal: Applied Economics, 2(1): 86-115.

DOI: 10.1257/app.2.1.86

Abstract

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. (JEL D14, H23, I32, I38, J13)

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Authors

Akee, Randall K. Q. (Tufts U and IZA)
Copeland, William E. (Duke U)
Keeler, Gordon (Duke U)
Angold, Adrian (Duke U)
Costello, E. Jane (Duke U)

JEL Classifications

D14: Personal Finance
H23: Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
I32: Measurement and Analysis of Poverty
I38: Welfare and Poverty: Government Programs; Provision and Effects of Welfare Programs
J13: Fertility; Family Planning; Child Care; Children; Youth

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