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Does money affect children’s outcomes?

Author

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  • Kerris Cooper
  • Kitty Stewart

Abstract

Children in low-income households do less well than their better-off peers on many outcomes in life, such as education or health, simply because they are poorer. While a parent's level of education, attitude towards bringing up children and other parental factors also have a bearing, research shows that having more money directly improves the development and level of achievement of children. Increases in family income substantially reduce differences in schooling outcomes and improve wider aspects of a child's well-being. Cognitive development and school achievement were most improved by having more money. Conversely, reductions in family income, including benefit cuts, are likely to have wide-ranging negative effects. Money seems to have more of an effect among low-income families.

Suggested Citation

  • Kerris Cooper & Kitty Stewart, 2013. "Does money affect children’s outcomes?," CASE Reports casereport80, Centre for Analysis of Social Exclusion, LSE.
    • Handle: RePEc:cep:sticar:casereport80
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    File URL: https://sticerd.lse.ac.uk/dps/case/cr/casereport80.pdf
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    Cited by:

    1. Cooper, Kerris & Stewart, Kitty, 2017. "Does Money Affect Children’s Outcomes? An update," LSE Research Online Documents on Economics 103494, London School of Economics and Political Science, LSE Library.
    2. Canali, Cinzia & Geron, Devis & Vecchiato, Tiziano, 2019. "Italian families living in poverty: Perspectives on their needs, supports and strengths," Children and Youth Services Review, Elsevier, vol. 97(C), pages 30-35.
    3. Jo Blanden, 2019. "Intergenerational income persistence," IZA World of Labor, Institute of Labor Economics (IZA), pages 176-176, January.
    4. Mona Sandbæk, 2017. "European Policies to Promote Children’s Rights and Combat Child Poverty," IJERPH, MDPI, vol. 14(8), pages 1-13, July.
    5. Barton, Jared & Pan, Xiaofei, 2022. "Movin’ on up? A survey experiment on mobility enhancing policies," European Journal of Political Economy, Elsevier, vol. 74(C).
    6. Crouch, Elizabeth & Jones, Jennifer & Strompolis, Melissa & Merrick, Melissa, 2020. "Examining the association between ACEs, childhood poverty and neglect, and physical and mental health: Data from two state samples," Children and Youth Services Review, Elsevier, vol. 116(C).
    7. Popova, Daria, 2023. "Impact of equity in social protection spending on income poverty and inequality," Centre for Microsimulation and Policy Analysis Working Paper Series CEMPA10/23, Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research.
    8. O'Connell, Michael, 2019. "Is the impact of SES on educational performance overestimated? Evidence from the PISA survey," Intelligence, Elsevier, vol. 75(C), pages 41-47.
    9. repec:cep:spccrp:12 is not listed on IDEAS
    10. Bradley Hardy & Timothy Smeeding & James P. Ziliak, 2018. "The Changing Safety Net for Low-Income Parents and Their Children: Structural or Cyclical Changes in Income Support Policy?," Demography, Springer;Population Association of America (PAA), vol. 55(1), pages 189-221, February.
    11. Peter Saunders & Judith E. Brown, 2020. "Child Poverty, Deprivation and Well-Being: Evidence for Australia," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 13(1), pages 1-18, February.
    12. Kerris Cooper & Kitty Stewart, 2017. "Does Money Affect Children's Outcomes? An update," CASE Papers /203, Centre for Analysis of Social Exclusion, LSE.
    13. Kerris Cooper & Kitty Stewart, 2021. "Does Household Income Affect children’s Outcomes? A Systematic Review of the Evidence," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(3), pages 981-1005, June.
    14. Simpson, Julija & Albani, Viviana & Bell, Zoe & Bambra, Clare & Brown, Heather, 2021. "Effects of social security policy reforms on mental health and inequalities: A systematic review of observational studies in high-income countries," Social Science & Medicine, Elsevier, vol. 272(C).
    15. Webb, Calum & Bywaters, Paul & Scourfield, Jonathan & Davidson, Gavin & Bunting, Lisa, 2020. "Cuts both ways: Ethnicity, poverty, and the social gradient in child welfare interventions," Children and Youth Services Review, Elsevier, vol. 117(C).
    16. Piotr Paradowski & Joanna Wolszczak-Derlacz & Eva Sierminska, 2020. "Inequality, Poverty and Child Benefits: Evidence from a Natural Experiment," LIS Working papers 799, LIS Cross-National Data Center in Luxembourg.
    17. Webb, Calum & Bywaters, Paul & Scourfield, Jonathan & McCartan, Claire & Bunting, Lisa & Davidson, Gavin & Morris, Kate, 2020. "Untangling child welfare inequalities and the ‘Inverse Intervention Law’ in England," Children and Youth Services Review, Elsevier, vol. 111(C).
    18. Cooper, Kerris & Stewart, Kitty, 2020. "Does household income affect children’s outcomes? A systematic review of the evidence," LSE Research Online Documents on Economics 107029, London School of Economics and Political Science, LSE Library.
    19. Stewart, Kitty & Obolenskaya, Polina, 2015. "The Coalition's record on under fives: policy, spending and outcomes 2010-2015," LSE Research Online Documents on Economics 121542, London School of Economics and Political Science, LSE Library.
    20. Esther Yin-Nei Cho, 2018. "Links between Poverty and Children’s Subjective Wellbeing: Examining the Mediating and Moderating Role of Relationships," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(2), pages 585-607, April.

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    Keywords

    children; money; education;
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