Parents' Incomes and Children's Outcomes: A Quasi-experiment Using Transfer Payments from Casino Profits
American Economic Journal: Applied Economics
vol. 2,
no. 1, January 2010
(pp. 86-115)
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)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.2.1.86Additional Materials
JEL Classification
- 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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