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Using Subsidies to Promote the Adoption of Children from Foster Care

Listed author(s):
  • Mary Eschelbach Hansen


    (Department of Economics, American University)

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    Since 1980 the federal government has implemented a variety of programs to promote the adoption of children from foster care. A key part of these programs has been the use of subsidies to lower the cost of adopting and parenting children from foster care. Although subsidies are a key part of federal policy there has been relatively little empirical research on the effect of subsidies on adoption rates. This paper uses data from the Adoption and Foster Care Analysis System to estimate the impact of subsidy rates on adoption rates. Subsidies to families that adopt children from foster care have a positive and statistically significant effect on adoption rates. A one percent increase in average subsidies increases adoption rates by as much as 0.20 percent.

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    File Function: First version, 2005
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    Paper provided by American University, Department of Economics in its series Working Papers with number 2005-15.

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    Length: 46 pages
    Date of creation: Dec 2005
    Handle: RePEc:amu:wpaper:1505
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    1. Wilson, Julie Boatright & Katz, Jeff & Geen, Robert, 2005. "Listening to Parents: Overcoming Barriers to the Adoption of Children from Foster Care," Working Paper Series rwp05-005, Harvard University, John F. Kennedy School of Government.
    2. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    3. Gennetian, Lisa A, 1999. "The Supply of Infants Relinquished for Adoption: Did Access to Abortion Make a Difference?," Economic Inquiry, Western Economic Association International, vol. 37(3), pages 412-431, July.
    4. Rosemary J. Avery & Daniel Mont, 1992. "Financial support of children involved in special needs adoption: A policy evaluation," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(3), pages 419-441.
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