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Income and the Outcomes of Children

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  • Phipps , Shelley
  • Lethbridge, Lynn

Abstract

This research paper examines whether various measures of family income are associated with the cognitive, social/emotional, physical and behavioural development of children. Data from the National Longitudinal Survey of Children and Youth were used to assess a range of measures of well-being among children aged 4-15 in 1998, whose family composition remained unchanged between 1994 and 1998. The study finds that regardless of age or how income is measured, higher family income is almost always associated with better child well-being. Among children in lower income families, incremental increases in household income are found to be associated with better child development outcomes. Increases in income continue to remain associated with better well-being, even once children are out of low income. In fact, the study does not find a point above which high income ceases to benefit children's development. In particular, children's cognitive and behavioural development measures appear to have the strongest associations with levels of family income. The results show that changes in family income appear to be less important for child outcomes than levels of family income for 8-11- and 12-15-year-olds. However, for the 4-7-year-old group, changes in family income are more important ' particularly for emotional development scores. Analysis from the Youth in Transition Survey also finds similar relationships between the socio-economic status of the family and the developmental outcomes of children.

Suggested Citation

  • Phipps , Shelley & Lethbridge, Lynn, 2006. "Income and the Outcomes of Children," Analytical Studies Branch Research Paper Series 2006281e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2006281e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2006281
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    References listed on IDEAS

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    6. Phipps , Shelley & Curtis, Laurie & Dooley , Martin, 2002. "Does Parent or Child Know Best? an Assessment of Parent/Child Agreement in the Canadian National Longitudinal Survey of Children and Youth," Analytical Studies Branch Research Paper Series 2002181e, Statistics Canada, Analytical Studies Branch.
    7. Martin Dooley & Lori Curtis, "undated". "Child Health and Family Socioeconomic Status in the Canadian National Longitudinal Survey of Children and Youth," Canadian International Labour Network Working Papers 38, McMaster University.
    8. Shelley Phipps & Peter Burton & Lynn Lethbridge & Lars Osberg, 2004. "Measuring Obesity in Young Children," Canadian Public Policy, University of Toronto Press, vol. 30(4), pages 349-364, December.
    9. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
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    11. Shelley Phipps, 2002. "The Well–Being of Young Canadian Children in International Perspective: A Functionings Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(4), pages 493-515, December.
    12. Sheldon Danziger & Jane Waldfogel, 2000. "Investing in Children: What do we know? What should we do?," CASE Papers case34, Centre for Analysis of Social Exclusion, LSE.
    13. David M. Blau, 1999. "The Effect Of Income On Child Development," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 261-276, May.
    14. Shelley Phipps, "undated". "Economics and Well-Being of Canadian Children," Canadian International Labour Network Working Papers 35, McMaster University.
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    Cited by:

    1. Nazeem Muhajarine & Chassidy Puchala & Magdalena Janus, 2011. "Does the EDI Equivalently Measure Facets of School Readiness for Aboriginal and Non-Aboriginal children?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 103(2), pages 299-314, September.
    2. Watson, Barry & Kong, Nancy & Phipps, Shelley, 2022. "Dreaming of a Brighter Future? The Impact of Economic Vulnerability on University Aspirations," IZA Discussion Papers 15539, Institute of Labor Economics (IZA).
    3. Peter Burton & Shelley Phipps, 2010. "From a Young Teen‟s Perspective: Income and the Happiness of Canadian 12 to 15 Year-Olds," Working Papers daleconwp2010-10, Dalhousie University, Department of Economics.

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