Parents' Incomes and Children's Outcomes: A Quasi-Experiment.
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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.
Published Version (Please cite this version)
Akee, Randall KQ, William E Copeland, Gordon Keeler, Adrian Angold and Elizabeth J Costello (2010). Parents' Incomes and Children's Outcomes: A Quasi-Experiment. Am Econ J Appl Econ, 2(1). pp. 86–115. 10.1257/app.2.1.86 Retrieved from https://hdl.handle.net/10161/3357.
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