Citation

Akee RKQ, Copeland WE, Keeler G, Angold A, Costello EJ. Am. Econ. J. Appl. Econ. 2010; 2(1): 86-115.

Copyright

(Copyright © 2010, American Economic Association)

DOI

10.1257/app.2.1.86

PMID

unavailable

Abstract

We examine the role an exogenous increase in household income, due to a government transfer unrelated to household characteristics, plays in children's long-run outcomes. Children in affected households have higher levels of education in their young adulthood and a lower incidence of criminality for minor offenses. Effects differ by initial household poverty status. An additional $4,000 per year for the poorest households increases educational attainment by one year at age 21, and reduces the chances of committing a minor crime by 22 percent for 16 and 17 year olds. Our evidence suggests improved parental quality is a likely mechanism for the change. (JEL D14, H23, I32, I38, J13)