Parents' Incomes and Children's Outcomes: A Quasi-Experiment Using Transfer Payments from Casino Profits
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- 1 January 2010
- journal article
- Published by American Economic Association in American Economic Journal: Applied Economics
- Vol. 2 (1) , 86-115
- https://doi.org/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)Keywords
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