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Why Do U.S. Parents Prefer Private To Foster Care Adoptions? The Role Of Adoption Subsidies, Gender, Race, And Special Needs

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  • Channary Khun
  • Sajal Lahiri
  • Sokchea Lim

Abstract

We analyze the demand behavior of adoptive parents in the U.S.A. For the theory, we apply vertical product differentiation to characterize the demand for domestic private, foster care and international adoptions. Then, we use the 2007 U.S. National Survey of Adoptive Parents and apply the control‐function approach to a mixed logit model. We find interesting insights into the relationship between adoption choices and an adoptive parent's preferences over gender, race, and special needs. The government needs to pay an additional $735 ($506) a month to make a parent feel indifferent between international (domestic private) and foster care adoptions. (JEL O12, D10, L13)

Suggested Citation

  • Channary Khun & Sajal Lahiri & Sokchea Lim, 2020. "Why Do U.S. Parents Prefer Private To Foster Care Adoptions? The Role Of Adoption Subsidies, Gender, Race, And Special Needs," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1757-1782, October.
    • Handle: RePEc:bla:ecinqu:v:58:y:2020:i:4:p:1757-1782
    DOI: 10.1111/ecin.12904
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D10 - Microeconomics - - Household Behavior - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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