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Privatization and subsidization of adoption services from foster care: Empirical evidence

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  • Deutsch, Joseph
  • Hakim, Simon
  • Spiegel, Uriel
  • Sumkin, Michael

Abstract

This paper analyzes empirical differences in adoption services of public and private agencies. The empirical investigation includes cross-sectional time series aggregated data for the 50 states within the United States from 1996 to 2010 with detailed statistical analysis of the period from 2000 through 2010 for which consistent and comprehensive data exists. Under private agencies, only 11.6months elapse from the time the courts terminate the natural parents' custody until the child is adopted, while with public agencies the same process lasts for 16months. Furthermore, during the decade from 1996 to 2006 private agencies completed more adoptions than public agencies. However, the performance gap in favor of private agencies was eliminated in 2006 and in the following years. The results suggest that privatization of adoption of young and healthy children did not show an advantage for private services. However, transitioning adoption services to private agencies for older children or children with complex special needs, improves the adoption services compared with those of public agencies. Subsidization especially improves the adoption of older children and of all children with special needs while it appears to be statistically insignificant or implied as unnecessary for healthy babies.

Suggested Citation

  • Deutsch, Joseph & Hakim, Simon & Spiegel, Uriel & Sumkin, Michael, 2017. "Privatization and subsidization of adoption services from foster care: Empirical evidence," Children and Youth Services Review, Elsevier, vol. 78(C), pages 9-17.
    • Handle: RePEc:eee:cysrev:v:78:y:2017:i:c:p:9-17
    DOI: 10.1016/j.childyouth.2017.04.022
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    References listed on IDEAS

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    1. Erwin A. Blackstone & Simon Hakim, 2003. "A Market Alternative to Child Adoption and Foster Care," Cato Journal, Cato Journal, Cato Institute, vol. 22(3), pages 485-494, Winter.
    2. Hollingsworth, Leslie D. & Bybee, Deborah & Johnson, Elizabeth I. & Swick, Danielle C., 2010. "A comparison of caseworker characteristics in public and private foster care agencies," Children and Youth Services Review, Elsevier, vol. 32(4), pages 578-584, April.
    3. Donald J. Boudreaux, 1995. "A Modest Proposal to Deregulate Infant Adoptions," Cato Journal, Cato Journal, Cato Institute, vol. 15(1), pages 117-135, Spring/Su.
    4. Blackstone, Erwin A. & Buck, Andrew J. & Hakim, Simon, 2004. "Privatizing adoption and foster care: Applying auction and market solutions," Children and Youth Services Review, Elsevier, vol. 26(11), pages 1033-1049, November.
    5. Joseph J. Doyle Jr., 2008. "Child Protection and Adult Crime: Using Investigator Assignment to Estimate Causal Effects of Foster Care," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 746-770, August.
    6. Flaherty, Chris & Collins-Camargo, Crystal & Lee, Elizabeth, 2008. "Privatization of child welfare services: Lessons learned from experienced states regarding site readiness assessment and planning," Children and Youth Services Review, Elsevier, vol. 30(7), pages 809-820, July.
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    8. Smith, Brenda D., 2003. "After Parental Rights are Terminated: Factors Associated with Exiting Foster Care," Children and Youth Services Review, Elsevier, vol. 25(12), pages 965-985, December.
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    More about this item

    Keywords

    Public adoption; Private adoption; Foster home; Subsidies;
    All these keywords.

    JEL classification:

    • H0 - Public Economics - - General
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • J4 - Labor and Demographic Economics - - Particular Labor Markets

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