Incomes and Outcomes in Early Childhood
Prior research has identified statistically significant but small income effects for children’s cognitive, language, and social outcomes. We examine the impact of family economic resources on developmental outcomes in early childhood, the stage of life during which developmental psychologists have suggested income effects should be largest. Using participants from the NICHD Study of Early Child Care, we estimate income effects that are comparable in absolute terms to those reported in previous research. Relative income effect sizes are found to have practical significance, however, both within our sample, and compared to participation in Early Head Start.
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