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Temporary Stays and Persistent Gains: The Causal Effects of Foster Care

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  • Max Gross
  • E. Jason Baron

Abstract

Six percent of children in the United States enter foster care by age 18. We estimate the effects of foster care on children's outcomes by exploiting the quasi-random assignment of child welfare investigators in Michigan. We find that foster care improved children's safety and educational outcomes. Gains emerged after children exited the foster system when most were reunified with their birth parents, suggesting that improvements made by their parents were an important mechanism. These results indicate that safely reducing the use of foster care, a goal of recent federal legislation, requires more effective in-home, prevention-focused efforts.

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  • Max Gross & E. Jason Baron, 2022. "Temporary Stays and Persistent Gains: The Causal Effects of Foster Care," American Economic Journal: Applied Economics, American Economic Association, vol. 14(2), pages 170-199, April.
    • Handle: RePEc:aea:aejapp:v:14:y:2022:i:2:p:170-99
    DOI: 10.1257/app.20200204
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    References listed on IDEAS

    as
    1. Joseph J. Doyle Jr., 2007. "Child Protection and Child Outcomes: Measuring the Effects of Foster Care," American Economic Review, American Economic Association, vol. 97(5), pages 1583-1610, December.
    2. John Eric Humphries & Nicholas Mader & Daniel Tannenbaum & Winnie van Dijk, 2019. "Does Eviction Cause Poverty? Quasi-Experimental Evidence from Cook County, IL," CESifo Working Paper Series 7800, CESifo.
    3. Ozkan Eren & Naci Mocan, 2021. "Juvenile Punishment, High School Graduation, and Adult Crime: Evidence from Idiosyncratic Judge Harshness," The Review of Economics and Statistics, MIT Press, vol. 103(1), pages 34-47, March.
    4. Anna Aizer & Joseph J. Doyle, 2015. "Juvenile Incarceration, Human Capital, and Future Crime: Evidence from Randomly Assigned Judges," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(2), pages 759-803.
    5. Anthony Bald & Eric Chyn & Justine Hastings & Margarita Machelett, 2022. "The Causal Impact of Removing Children from Abusive and Neglectful Homes," Journal of Political Economy, University of Chicago Press, vol. 130(7), pages 1919-1962.
    6. Joseph J. Doyle Jr., 2008. "Child Protection and Adult Crime: Using Investigator Assignment to Estimate Causal Effects of Foster Care," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 746-770, August.
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    Citations

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    Cited by:

    1. E. Jason Baron & Joseph J. Doyle Jr. & Natalia Emanuel & Peter Hull & Joseph Ryan, 2024. "Unwarranted Disparity in High-Stakes Decisions: Race Measurement and Policy Responses," NBER Chapters, in: Race, Ethnicity, and Economic Statistics for the 21st Century, National Bureau of Economic Research, Inc.
    2. 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.
    3. Mohamed Coulibaly & Yu-Chin Hsu & Ismael Mourifié & Yuanyuan Wan, 2024. "A Sharp Test for the Judge Leniency Design," NBER Working Papers 32456, National Bureau of Economic Research, Inc.
    4. Nina Thorup Dalgaard & Anja Bondebjerg & Elizabeth Bengtsen & Jens Dietrichson & Anders Bach‐Mortensen, 2024. "Protocol: Interventions aimed at preventing out‐of‐home placement of children: A systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 20(2), June.
    5. 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.
    6. Anna Bárdits & Gábor Kertesi, 2024. "Family foster care or residential care: the impact of home environment on children raised in state care," CERS-IE WORKING PAPERS 2403, Institute of Economics, Centre for Economic and Regional Studies.
    7. Johannes W. Ligtenberg & Tiemen Woutersen, 2024. "Multidimensional clustering in judge designs," Papers 2406.09473, arXiv.org.
    8. Bhuller, Manudeep & Dahl, Gordon B. & Løken, Katrine V. & Mogstad, Magne, 2022. "Domestic Violence and the Mental Health and Well-being of Victims and Their Children," Discussion Paper Series in Economics 21/2022, Norwegian School of Economics, Department of Economics.
    9. E. Jason Baron & Ezra G. Goldstein & Joseph Ryan, 2023. "The Push for Racial Equity in Child Welfare: Can Blind Removals Reduce Disproportionality?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(2), pages 456-487, March.
    10. Grimon, Marie-Pascale, 2023. "Effects of the Child Protection System on Parents," Working Paper Series 2/2023, Stockholm University, Swedish Institute for Social Research, revised 16 Apr 2024.

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    More about this item

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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