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Adoption Subsidies and Placement Outcomes for Children in Foster Care

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  • Kasey S. Buckles

Abstract

More than 400,000 children in the United States are currently in foster care, many of whom are at risk for long-lasting emotional and health problems. The Adoption Assistance and Child Welfare Act of 1980 provided federal funds for monthly adoption subsidies designed to promote adoptions of special-needs children and children in foster care. Using data from the Adoption and Foster Care Analysis and Reporting Systems, I find that the number of adoptions increases when children become subsidy-eligible, and that most of the increase is from adoptions by foster parents. Conditional on adoption, subsidy eligibility decreases time spent in foster care.

Suggested Citation

  • Kasey S. Buckles, 2013. "Adoption Subsidies and Placement Outcomes for Children in Foster Care," Journal of Human Resources, University of Wisconsin Press, vol. 48(3), pages 596-627.
    • Handle: RePEc:uwp:jhriss:v:48:y:2013:iii:1:p:596-627
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    References listed on IDEAS

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    1. Joseph Doyle & H. Peters, 2007. "The market for foster care: an empirical study of the impact of foster care subsidies," Review of Economics of the Household, Springer, vol. 5(4), pages 329-351, December.
    2. Doyle, Joseph J., 2007. "Can't buy me love? Subsidizing the care of related children," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 281-304, February.
    3. Mara Violato & Stavros Petrou & Ron Gray & Maggie Redshaw, 2011. "Family income and child cognitive and behavioural development in the United Kingdom: does money matter?," Health Economics, John Wiley & Sons, Ltd., vol. 20(10), pages 1201-1225, October.
    4. Bruce Sacerdote, 2007. "How Large are the Effects from Changes in Family Environment? A Study of Korean American Adoptees," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(1), pages 119-157.
    5. Bran Duncan & Laura Argys, 2007. "Economics Incentives and Foster Care Placement," Southern Economic Journal, John Wiley & Sons, vol. 74(1), pages 114-142, July.
    6. Mary Hansen, 2007. "Using Subsidies to Promote the Adoption of Children from Foster Care," Journal of Family and Economic Issues, Springer, vol. 28(3), pages 377-393, September.
    7. Christopher Swann & Michelle Sylvester, 2006. "The foster care crisis: What caused caseloads to grow," Demography, Springer;Population Association of America (PAA), vol. 43(2), pages 309-335, May.
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    Cited by:

    1. Amelia M. Biehl & Brian Hill, 2018. "Foster care and the earned income tax credit," Review of Economics of the Household, Springer, vol. 16(3), pages 661-680, September.
    2. Goodwin, Bonni & Madden, Elissa, 2020. "Factors associated with adoption breakdown following implementation of the Fostering Connections Act: A systematic review," Children and Youth Services Review, Elsevier, vol. 119(C).
    3. Cameron Taylor, 2024. "Why do families foster children? A Beckerian approach," Review of Economics of the Household, Springer, vol. 22(1), pages 261-293, March.
    4. Bishop Kelly C. & Mac Donald Diana E., 2022. "The Effect of Paying Parents to Adopt: Evidence from Minnesota's Foster-Care System," Working Papers 2022-01, Banco de México.
    5. Luke P. Rodgers & Cullen T. Wallace, 2020. "Who responds to changes to the federal adoption tax credit? Evidence from Florida," Southern Economic Journal, John Wiley & Sons, vol. 87(2), pages 483-516, October.
    6. Margaret E. Brehm, 2018. "The Effects of Federal Adoption Incentive Awards for Older Children on Adoptions From U.S. Foster Care," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 37(2), pages 301-330, March.
    7. Potter, Marina Haddock & Font, Sarah A., 2021. "State contexts and foster care adoption rates," Children and Youth Services Review, Elsevier, vol. 126(C).
    8. Sattler, Kierra M.P. & Herd, Toria & Font, Sarah A., 2023. "Foster care, kinship care, and the transition to adulthood: Do child welfare system processes explain differences in outcomes?," Children and Youth Services Review, Elsevier, vol. 153(C).
    9. Hayduk Iryna, 2017. "The Effect of Kinship Placement Laws on Foster Children’s Well-Being," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(1), pages 1-23, February.
    10. Alexa Prettyman, 2024. "Happy 18th Birthday, Now Leave: Estimating the Causal Effects of Extended Foster Care," Working Papers 2024-02, Towson University, Department of Economics, revised Feb 2024.

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