How Does Household Income Affect Child Personality Traits and Behaviors?
E. Jane Costello
- American Economic Review (Forthcoming)
We examine the effects of a quasi-experimental unconditional household income transfer
on child emotional and behavioral health and personality traits. Using longitudinal data,
we find that there are large beneficial effects on children’s emotional and behavioral
health and personality traits during adolescence. We find evidence that these effects are
most pronounced for children who start out with the lowest initial endowments. The income
intervention also results in improvements in parental relationships which we interpret as
a potential mechanism behind our findings.
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