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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. Bran Duncan & Laura Argys, 2007. "Economics Incentives and Foster Care Placement," Southern Economic Journal, Southern Economic Association, vol. 74(1), pages 114-142, July.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
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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. David Simon & Aaron Sojourner & Jon Pedersen & Heidi Ombisa Skallet, 2024. "Financial Incentives for Adoption and Kin Guardianship Improve Achievement for Foster Children," Upjohn Working Papers 24-401, W.E. Upjohn Institute for Employment Research.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Potter, Marina Haddock & Font, Sarah A., 2021. "State contexts and foster care adoption rates," Children and Youth Services Review, Elsevier, vol. 126(C).
    11. 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).

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