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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. Janet Currie, 2001. "Early Childhood Education Programs," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 213-238, Spring.
    2. 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.
    3. 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.
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    6. 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.
    7. 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.
    8. Shea, John, 2000. "Does parents' money matter?," Journal of Public Economics, Elsevier, vol. 77(2), pages 155-184, August.
    9. 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.
    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. 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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    Cited by:

    1. Neil J. Buckley & Frank T. Denton & A. Leslie Robb & Byron G. Spencer, 2006. "Socio-economic Influences on the Health of Older Canadians: Estimates Based on Two Longitudinal Surveys," Canadian Public Policy, University of Toronto Press, vol. 32(1), pages 59-84, March.
    2. Catherine Deri-Armstrong, 2009. "The Long-term Effects of Maternal Employment on Daughters’ Later Labour Force Participation and Earnings," Working Papers 0914E, University of Ottawa, Department of Economics.
    3. Pierre Lefebvre & Philip Merrigan, 2005. "Low-fee ($5/day/child) Regulated Childcare Policy and the Labor Supply of Mothers with Young Children: A Natural Experiment from Canada," CIRANO Working Papers 2005s-09, CIRANO.
    4. Janet Currie, 2004. "Viewpoint: Child research comes of age," Canadian Journal of Economics, Canadian Economics Association, vol. 37(3), pages 509-527, August.
    5. Magne Mogstad & Matthew Wiswall, 2009. "How Linear Models Can Mask Non-Linear Causal Relationships. An Application to Family Size and Children's Education," Discussion Papers 586, Statistics Norway, Research Department.
    6. Shelly Lundberg & Aloysius Siow, 2017. "Canadian contributions to family economics," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1304-1323, December.
    7. LEBIHAN, Laetitia & MAO TAKONGMO, Charles Olivier, 2018. "Mathematics Trajectories and Risk Factors During Childhood," MPRA Paper 88612, University Library of Munich, Germany.
    8. Daniela Del Boca & Christopher Flinn & Matthew Wiswall, 2014. "Household Choices and Child Development," Review of Economic Studies, Oxford University Press, vol. 81(1), pages 137-185.
    9. 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.
    10. Randall Akee & William Copeland & E. Jane Costello & Emilia Simeonova, 2018. "How Does Household Income Affect Child Personality Traits and Behaviors?," American Economic Review, American Economic Association, vol. 108(3), pages 775-827, March.
    11. Contoyannis, Paul & Li, Jinhu, 2011. "The evolution of health outcomes from childhood to adolescence," Journal of Health Economics, Elsevier, vol. 30(1), pages 11-32, January.
    12. Kevin Milligan & Mark Stabile, 2011. "Do Child Tax Benefits Affect the Well-Being of Children? Evidence from Canadian Child Benefit Expansions," American Economic Journal: Economic Policy, American Economic Association, vol. 3(3), pages 175-205, August.
    13. Michael Baker, 2011. "Innis Lecture: Universal early childhood interventions: what is the evidence base?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(4), pages 1069-1105, November.
    14. 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.
    15. Lynda G. Gagné & Ana Ferrer, 2006. "Housing, Neighbourhoods and Development Outcomes of Children in Canada," Canadian Public Policy, University of Toronto Press, vol. 32(3), pages 275-300, September.
    16. Lihui Zhang, 2016. "Are youth offenders responsive to changing sanctions? Evidence from the Canadian Youth Criminal Justice Act of 2003," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(2), pages 515-554, May.
    17. Chowhan, James & Stewart, Jennifer M., 2007. "Television and the behaviour of adolescents: Does socio-economic status moderate the link?," Social Science & Medicine, Elsevier, vol. 65(7), pages 1324-1336, October.
    18. Kelly Chen & Lars Osberg & Shelley Phipps, 2015. "Inter-generational effects of disability benefits: evidence from Canadian social assistance programs," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(4), pages 873-910, October.
    19. Michael Baker, 2011. "Innis Lecture: Universal early childhood interventions: what is the evidence base?," Canadian Journal of Economics, Canadian Economics Association, vol. 44(4), pages 1069-1105, November.
    20. Katrine V. Løken & Magne Mogstad & Matthew Wiswall, 2012. "What Linear Estimators Miss: The Effects of Family Income on Child Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 1-35, April.
    21. Phipps , Shelley & Lethbridge, Lynn, 2006. "Income and the Outcomes of Children," Analytical Studies Branch Research Paper Series 2006281e, Statistics Canada, Analytical Studies Branch.
    22. Laëtitia Lebihan & Charles Olivier Mao Takongmo, 2015. "Academic achievement trajectories and risk factors during early childhood," CIRANO Working Papers 2015s-47, CIRANO.

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    JEL classification:

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

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