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Using Subsidies to Promote the Adoption of Children from Foster Care

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  • Mary Hansen

Abstract

Since 1978 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 who have been in foster care. Although subsidies are a key part of federal policy, there has been little empirical research on the effect of subsidies on adoption rates. This paper uses data from the Adoption and Foster Care Analysis and Reporting System to estimate the impact of subsidy rates on adoption rates. Subsidies to families have a positive and statistically significant effect on adoption rates. Copyright Springer Science+Business Media, LLC 2007

Suggested Citation

  • Mary Hansen, 2007. "Using Subsidies to Promote the Adoption of Children from Foster Care," Journal of Family and Economic Issues, Springer, vol. 28(3), pages 377-393, September.
    • Handle: RePEc:kap:jfamec:v:28:y:2007:i:3:p:377-393
    DOI: 10.1007/s10834-007-9067-6
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    References listed on IDEAS

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    1. 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.
    2. Brooks, Devon & James, Sigrid, 2003. "Willingness to adopt back foster children: implications for child welfare policy and recruitment of adoptive families," Children and Youth Services Review, Elsevier, vol. 25(5-6), pages 463-489.
    3. 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.
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    6. Blackstone, Erwin A. & Buck, Andrew J. & Hakim, Simon, 2004. "Privatizing adoption and foster care: Applying auction and market solutions," Children and Youth Services Review, Elsevier, vol. 26(11), pages 1033-1049, November.
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    Cited by:

    1. Mark Skidmore & Gary Anderson & Mark Eiswerth, 2016. "The Child Adoption Marketplace," Public Finance Review, , vol. 44(2), pages 163-196, March.
    2. Amelia M. Biehl & Brian Hill, 2018. "Foster care and the earned income tax credit," Review of Economics of the Household, Springer, vol. 16(3), pages 661-680, September.
    3. Bishop Kelly C. & Mac Donald Diana E., 2022. "The Effect of Paying Parents to Adopt: Evidence from Minnesota's Foster-Care System," Working Papers 2022-01, Banco de México.
    4. Hansen, Mary Eschelbach, 2008. "The distribution of a federal entitlement: The case of adoption assistance," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2427-2442, December.
    5. Margaret E. Brehm, 2018. "The Effects of Federal Adoption Incentive Awards for Older Children on Adoptions From U.S. Foster Care," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 37(2), pages 301-330, March.
    6. Sattler, Kierra M.P. & Herd, Toria & Font, Sarah A., 2023. "Foster care, kinship care, and the transition to adulthood: Do child welfare system processes explain differences in outcomes?," Children and Youth Services Review, Elsevier, vol. 153(C).
    7. Moriguchi, Chiaki, 2012. "The Evolution of Child Adoption in the United States, 1950-2010—An Economic Analysis of Historical Trends—," Economic Review, Hitotsubashi University, vol. 63(3), pages 265-285, July.
    8. Kasey S. Buckles, 2013. "Adoption Subsidies and Placement Outcomes for Children in Foster Care," Journal of Human Resources, University of Wisconsin Press, vol. 48(3), pages 596-627.
    9. Simon, David & Sojourner, Aaron & Pedersen, Jon & Ombisa Skallet, Heidi, 2024. "Financial Incentives for Adoption and Kin Guardianship Improve Achievement for Foster Children," IZA Discussion Papers 17057, Institute of Labor Economics (IZA).
    10. 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.
    11. Hansen, Mary Eschelbach, 2007. "State-designated special needs, post-adoption support, and state fiscal stress," Children and Youth Services Review, Elsevier, vol. 29(11), pages 1411-1425, November.
    12. Goodwin, Bonni & Madden, Elissa, 2020. "Factors associated with adoption breakdown following implementation of the Fostering Connections Act: A systematic review," Children and Youth Services Review, Elsevier, vol. 119(C).
    13. Cameron Taylor, 2024. "Why do families foster children? A Beckerian approach," Review of Economics of the Household, Springer, vol. 22(1), pages 261-293, March.
    14. Potter, Marina Haddock & Font, Sarah A., 2021. "State contexts and foster care adoption rates," Children and Youth Services Review, Elsevier, vol. 126(C).
    15. Laura Argys & Brian Duncan, 2013. "Economic Incentives and Foster Child Adoption," Demography, Springer;Population Association of America (PAA), vol. 50(3), pages 933-954, June.
    16. Florence Neymotin, 2018. "The impact of state subsidies for family leave on foster care and adoptions," Economics Bulletin, AccessEcon, vol. 38(2), pages 870-879.
    17. Channary Khun & Sajal Lahiri & Sokchea Lim, 2020. "Why Do U.S. Parents Prefer Private To Foster Care Adoptions? The Role Of Adoption Subsidies, Gender, Race, And Special Needs," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1757-1782, October.

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