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The Child Adoption Marketplace

Author

Listed:
  • Mark Skidmore
  • Gary Anderson
  • Mark Eiswerth

Abstract

In the United States, child adoption costs vary considerably, ranging from no out-of-pocket expense to US$50,000 or more. What are the causes for the variability in adoption expenses? We administered a survey to a sample of Michigan adoptive families to link adoptive parent characteristics, child characteristics, and adoption-related expenses and subsidies. We then estimated “hedonic†regressions in which adoption cost is a function of child characteristics. The analysis shows that up to 74 percent of the variation in adoption costs is explained by child characteristics. In particular, costs are lower for older children, children of African descent, and special needs children. Findings inform policies regarding the transition of children from foster care to adoptive families.

Suggested Citation

  • Mark Skidmore & Gary Anderson & Mark Eiswerth, 2016. "The Child Adoption Marketplace," Public Finance Review, , vol. 44(2), pages 163-196, March.
    • Handle: RePEc:sae:pubfin:v:44:y:2016:i:2:p:163-196
    DOI: 10.1177/1091142114547412
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    References listed on IDEAS

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    1. Wulczyn, Fred, 2003. "Closing the gap: are changing exit patterns reducing the time African American children spend in foster care relative to Caucasian children?," Children and Youth Services Review, Elsevier, vol. 25(5-6), pages 431-462.
    2. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
    3. 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.
    4. 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.
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