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Income and the Outcomes of Children

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Author Info

  • Phipps , Shelley
  • Lethbridge, Lynn

Abstract

This research paper examines whether various measures of family income are associated with the cognitive, social/emotional, physical and behavioural development of children. Data from the National Longitudinal Survey of Children and Youth were used to assess a range of measures of well-being among children aged 4-15 in 1998, whose family composition remained unchanged between 1994 and 1998. The study finds that regardless of age or how income is measured, higher family income is almost always associated with better child well-being. Among children in lower income families, incremental increases in household income are found to be associated with better child development outcomes. Increases in income continue to remain associated with better well-being, even once children are out of low income. In fact, the study does not find a point above which high income ceases to benefit children's development. In particular, children's cognitive and behavioural development measures appear to have the strongest associations with levels of family income. The results show that changes in family income appear to be less important for child outcomes than levels of family income for 8-11- and 12-15-year-olds. However, for the 4-7-year-old group, changes in family income are more important ' particularly for emotional development scores. Analysis from the Youth in Transition Survey also finds similar relationships between the socio-economic status of the family and the developmental outcomes of children.

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File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2006281&ObjType=46&lang=en&limit=0
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Bibliographic Info

Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2006281e.

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Date of creation: 11 May 2006
Date of revision:
Handle: RePEc:stc:stcp3e:2006281e

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Related research

Keywords: Child development and behaviour; Children and youth; Health and well-being (youth); Household; family and personal income; Income; pensions; spending and wealth;

This paper has been announced in the following NEP Reports:

References

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  1. Shelley Phipps & Peter Burton & Lynn Lethbridge & Lars Osberg, 2004. "Measuring Obesity in Young Children," Canadian Public Policy, University of Toronto Press, vol. 30(4), pages 349-364, December.
  2. Hertzman, C., 2000. "The Case for an Early Childhood Development Strategy," Centre for Health Services and Policy Research 2000:13r, University of British Columbia - Centre for Health Services and Policy Research..
  3. Phipps, S., 1999. "The Well-Being of Young Canadian Children in International Perspective," Department of Economics at Dalhousie University working papers archive 99-01, Dalhousie, Department of Economics.
  4. Mizon, Grayham E & Richard, Jean-Francois, 1986. "The Encompassing Principle and Its Application to Testing Non-nested Hypotheses," Econometrica, Econometric Society, vol. 54(3), pages 657-78, May.
  5. Phipps , Shelley & Curtis, Laurie & Dooley , Martin, 2002. "Does Parent or Child Know Best? an Assessment of Parent/Child Agreement in the Canadian National Longitudinal Survey of Children and Youth," Analytical Studies Branch Research Paper Series 2002181e, Statistics Canada, Analytical Studies Branch.
  6. Phipps, S., 1999. "The Well-Being of Young Canadian Children in International Perspective," Department of Economics at Dalhousie University working papers archive 99-01, Dalhousie, Department of Economics.
  7. Zyblock, Miles & Picot, Garnett & Pyper, Wendy, 1999. "Why Do Children Move into and out of Low Income: Changing Labour Market Conditions or Marriage and Divorce," Analytical Studies Branch Research Paper Series 1999132e, Statistics Canada, Analytical Studies Branch.
  8. Lori Curtis & Martin D. Dooley & Ellen L. Lipman & David H. Feeny, . "The Role of Permanent Income and Family Structure in the Determination of Child Health in the Ontario Child Health Study," Canadian International Labour Network Working Papers 16, McMaster University.
  9. David M. Blau, 1999. "The Effect Of Income On Child Development," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 261-276, May.
  10. Korenman, Sanders & Miller, Jane E. & Sjaastad, John E., 1995. "Long-term poverty and child development in the United States: Results from the NLSY," Children and Youth Services Review, Elsevier, vol. 17(1-2), pages 127-155.
  11. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
  12. Martin Dooley & Jennifer Stewart, 2004. "Family income and child outcomes in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 37(4), pages 898-917, November.
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Cited by:
  1. Nazeem Muhajarine & Chassidy Puchala & Magdalena Janus, 2011. "Does the EDI Equivalently Measure Facets of School Readiness for Aboriginal and Non-Aboriginal children?," Social Indicators Research, Springer, vol. 103(2), pages 299-314, September.

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