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Economics of Foster Care

Author

Listed:
  • Anthony Bald
  • Joseph J. Doyle Jr.
  • Max Gross
  • Brian A. Jacob

Abstract

Foster care provides substitute living arrangements to protect maltreated children. The practice is remarkably common: it is estimated that 5 percent of children in the United States are placed in foster care at some point during childhood. This paper describes the main tradeoffs in child welfare policy and provides background on policy and practice most in need of rigorous evidence. Trends include efforts to prevent foster care on the demand side and to improve foster home recruitment on the supply side. With increasing data availability and a growing interest in evidence-based practices, there are opportunities for economic research to inform policies that protect vulnerable children.

Suggested Citation

  • Anthony Bald & Joseph J. Doyle Jr. & Max Gross & Brian A. Jacob, 2022. "Economics of Foster Care," Journal of Economic Perspectives, American Economic Association, vol. 36(2), pages 223-246, Spring.
    • Handle: RePEc:aea:jecper:v:36:y:2022:i:2:p:223-46
    DOI: 10.1257/jep.36.2.223
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    References listed on IDEAS

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    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. Rouland, B. & Vaithianathan, R., 2018. "Cumulative prevalence of maltreatment among New Zealand children, 1998–2015," American Journal of Public Health, American Public Health Association, vol. 108(4), pages 511-513.
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    6. William P. Warburton & Rebecca N. Warburton & Arthur Sweetman & Clyde Hertzman, 2014. "The Impact of Placing Adolescent Males into Foster Care on Education, Income Assistance, and Convictions," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(1), pages 35-69, February.
    7. Anna, Petrenko, 2016. "Мaркування готової продукції як складова частина інформаційного забезпечення маркетингової діяльності підприємств овочепродуктового підкомплексу," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(1), March.
    8. 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, January.
    9. Dworsky, A. & Napolitano, L. & Courtney, M., 2013. "Homelessness during the transition from foster care to adulthood," American Journal of Public Health, American Public Health Association, vol. 103(S2), pages 318-323.
    10. 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.
    11. Lawrence M. Berger & Sarah A. Font & Kristen S. Slack & Jane Waldfogel, 2017. "Income and child maltreatment in unmarried families: evidence from the earned income tax credit," Review of Economics of the Household, Springer, vol. 15(4), pages 1345-1372, December.
    12. Doyle, Joseph J., 2013. "Causal effects of foster care: An instrumental-variables approach," Children and Youth Services Review, Elsevier, vol. 35(7), pages 1143-1151.
    13. Berrick, Jill Duerr & Hernandez, Julia, 2016. "Developing consistent and transparent kinship care policy and practice: State mandated, mediated, and independent care," Children and Youth Services Review, Elsevier, vol. 68(C), pages 24-33.
    14. Jessica Foster & Patrick Lawler, 2013. "Making Performance-Based Contracting work for kids and families," Community Development Innovation Review, Federal Reserve Bank of San Francisco, issue 01, pages 139-145.
    15. Goldhaber-Fiebert, Jeremy D. & Babiarz, Kimberly S. & Garfield, Rachel L. & Wulczyn, Fred & Landsverk, John & Horwitz, Sarah M., 2014. "Explaining variations in state foster care maintenance rates and the implications for implementing new evidence-based programs," Children and Youth Services Review, Elsevier, vol. 39(C), pages 183-206.
    16. Hubel, Grace S. & Schreier, Alayna & Hansen, David J. & Wilcox, Brian L., 2013. "A case study of the effects of privatization of child welfare on services for children and families: The Nebraska experience," Children and Youth Services Review, Elsevier, vol. 35(12), pages 2049-2058.
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    Cited by:

    1. 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.
    2. 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.
    3. Ryan Cooper & Joseph Doyle & Andres Hojman, 2023. "Legal aid in child welfare: Evidence from a randomized trial of Mi Abogado," POID Working Papers 077, Centre for Economic Performance, LSE.
    4. 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.

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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
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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