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Family income and child outcomes in Canada

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  • Martin Dooley
  • Jennifer Stewart

Abstract

A positive relationship between income and child outcomes has been observed in data from numerous countries. A key question concerns the extent to which this association represents a causal relationship as opposed to unobserved heterogeneity. We use data from the National Longitudinal Survey of Children and Youth to implement a series of empirical strategies for estimating the existence and size of the effect of income on three measures of cognition. Our results indicate that the effect of income on these outcomes may well be positive, but that it is likely to be smaller than conventional estimates.

Suggested Citation

  • 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.
    • Handle: RePEc:cje:issued:v:37:y:2004:i:4:p:898-917
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    References listed on IDEAS

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    1. Maurin, Eric, 2002. "The impact of parental income on early schooling transitions: A re-examination using data over three generations," Journal of Public Economics, Elsevier, vol. 85(3), pages 301-332, September.
    2. Bruce Sacerdote, 2002. "The Nature and Nurture of Economic Outcomes," American Economic Review, American Economic Association, vol. 92(2), pages 344-348, May.
    3. Charles L. Baum II, 2003. "Does Early Maternal Employment Harm Child Development? An Analysis of the Potential Benefits of Leave Taking," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 381-408, April.
    4. Pierre Merrigan & Philip Lefebvre, 2002. "The Effect of Childcare and Early Education Arrangements on Developmental Outcomes of Young Children," Canadian Public Policy, University of Toronto Press, vol. 28(2), pages 159-185, June.
    5. Martin Dooley & Jennifer Stewart, 2004. "Family income and child outcomes in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(4), pages 898-917, November.
    6. Shea, John, 2000. "Does parents' money matter?," Journal of Public Economics, Elsevier, vol. 77(2), pages 155-184, August.
    7. 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.
    8. Janet Currie, 2001. "Early Childhood Education Programs," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 213-238, Spring.
    9. Anderson, Patricia M. & Butcher, Kristin F. & Levine, Phillip B., 2003. "Maternal employment and overweight children," Journal of Health Economics, Elsevier, vol. 22(3), pages 477-504, May.
    10. Rhonda Kornberger & Janet E. Fast & Deanna L. Williamson, 2001. "Welfare or Work: Which is Better for Canadian Children?," Canadian Public Policy, University of Toronto Press, vol. 27(4), pages 407-421, December.
    11. Martin Dooley & Ellen Lipman & Jennifer Stewart, 2005. "Exploring the Good Mother Hypothesis: Do Child Outcomes Vary with the Mother's Share of Income?," Canadian Public Policy, University of Toronto Press, vol. 31(2), pages 123-144, June.
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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General

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